Icelandic Post Office partners with Smáríkið for online alcohol sales amidst regulatory confusion

Iceland’s Post Office has announced a partnership with Smáríkið, a retail company specializing in the sale of alcoholic beverages. This collaboration raises questions regarding the legality of online alcohol sales in the country, as the state-owned ÁTVR claims to hold a monopoly on such sales and deliveries.

In a joint statement, Sigríður Heiðar, head of the sales department at the Post Office, emphasized the importance of confirming a recipient’s age or authorization when distributing sensitive items like medicines and alcohol. She noted that the partnership has proven effective, allowing Smáríkið’s customers to receive their purchases directly at home through the Post Office, which requires electronic identification upon delivery.

Despite being newly established, Smáríkið has reportedly seen substantial growth, recently celebrating its ten-thousandth customer. Owner Óskar Jónsson remarked that utilizing the Post Office’s services has improved their ability to deliver products reliably across the capital region and beyond.

The legality of online alcohol sales remains ambiguous, with investigations ongoing since 2020 after complaints were lodged with the authorities. Icelandic companies have previously engaged in overseas ventures to sell alcohol back home, further complicating the regulatory landscape.

Additionally, reports surfaced this summer indicating that Smáríkið employed social media influencers to promote their alcohol products, a practice that violates Icelandic advertising laws, as alcohol marketing is prohibited. Consequently, those promotional videos were removed shortly thereafter.

As Smáríkið continues its operations, the emphasis on responsible distribution practices and compliance with local regulations presents a significant challenge amidst evolving market dynamics in Iceland.