In Iceland there is a state monopoly of all alcoholic beverages and in the New Year a further price raise has been announced. With that raise the prices of alcohol will have risen over 100% since Iceland’s 2008 financial crash according to a report by Vidskiptabladid.

Advertising of all alcoholic beverages, i.e. beverages over 2.25 per cent alcohol by volume, is prohibited by the Alcohol Act and the Vinbudin has complete monopoly.

Beverages are sold in Vinbudin, a chain of stores run by the Icelandic alcohol and tobacco monopoly ATVR, locally called Rikid (the State). It’s Iceland’s sole legal vendor of alcohol for off-premises consumption. Iceland has very high taxes on alcohol. Initially this was said to be done to curb consumption and on top of that alcohol is normally at least twice as expensive in bars and restaurants outside the Vinbudin. In September 2008 the due of for a calculated centiliter of the alcohol spirit in wine was 52,8 Ikr. According to the state budget for 2017 it will become 106,8 Ikr, which results in a 102% raise.

State monopoly is common in the Nordic coutries, Sweden, Finland, Norway, Denmark and the Faroe Islands all have state monopoly.  Vinbudin is run by ATVR in Iceland, in Finland the stores are called Alko, Systembolaged in Sweden, Vinmonopolet in Norway and Rúsdrekkasølu in the Faroe Islands. On the tablet below there are price examples in the Nordic alcohol monopoly companies from 2 June 2015 in euro

 

 

 

 

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