Wine importer finds way around state monopoly

Icelandic wine importer Sante might have discovered a loophole that may permit Icelandic customers to avoid the state monopoly on the sale of wines and spirits.

Along with charging excessive taxes on alcohol the Icelandic state is the unique retail vendor of alcoholic drinks to the general public and operates wine retailers in all main inhabitants facilities. Because of EU laws Icelandic customers can even buy wine from European retailers who ship the orders by mail, however this leads to comparatively excessive delivery prices and lengthy supply occasions.

Sante, run by Icelandic entrepreneur and wine connoisseur Arnar Sigurðsson, has established a sister firm in France, Santewines SAS, which operates as a EU-based on-line wine store however shops its inventory in Iceland, thereby minimizing the excessive value and lengthy supply occasions that got here with having on-line purchases shipped from mainland Europe. Clients can, if they want, save on delivery and gather their on-line purchases straight from the Santewines warehouse, situated in a blended industrial-commercial zone adjoining to Reykjavik harbor.

Trade insiders appear to disagree on whether or not Sante’s operations are totally authorized, however each importers and producers of alcoholic drinks are monitoring this new enterprise to see if authorities will intervene. Ought to the association show to be in accordance with the regulation it can possible convey a couple of main change out there.

“It’s completely clear that not a single [importer and manufacturer] will sit by and do nothing if that’s the case. The identical would go for grocery shops which might start providing an identical service,” mentioned Jón Erling Ragnarsson, normal supervisor of wine importer Mekka Wine & Spirits when interviewed by the Morgunblaðið.

The Santewines on-line wine store may be discovered at www.sante.is and affords, for instance, some 86 types of purple wine and 35 sorts of champagne.

Prior to now few years Icelandic authorities have confronted growing stress to make adjustments to the regulation in order that alcoholic drinks may be offered in grocery shops. There has additionally been stress from the rising microbrewery business to permit producers of craft beer to promote on to clients.