Fair and equal pricing

Alko operates responsibly at all levels of its value and supply chain. Products are chosen for the product range on the basis of an open and fair selection process, and anyone can offer their products to Alko. The basic selection includes products whose characteristics best meet demand and that offer customers the best value for money.

Alko’s pricing policy differs from that of most other retailers. The prices of alcoholic beverages that fall within the scope of the monopoly (over 5.5% ABV) are completely transparent and based on annually published pricing coefficients and principles.

Suppliers can look for the right price point for their products by changing their prices as they wish.

Prices may be revised twice a year. These scheduled price changes are normally carried out at the end of March and end of September. When a supplier changes their price, Alko adjusts the price charged from consumers accordingly. Alko does not run price discount campaigns. 

How do changes in the taxation of alcoholic beverages affect product prices?

Alko does not determine the taxes to be paid on alcoholic beverages. The Finnish Government and Parliament decide on taxation. Any changes in tax rates are carried over to the prices charged to consumers in full. However, it is the supplier who determines the final price for their product. For example, the 2021 increase in alcohol taxation led to an average price rise of 1%.

Alko’s gross profit margin is cost-based

Alko’s gross profit margin is cost-based and, thanks to improvements in operational efficiency, has remained the same for years. The margin was last revised in 2012, when it was lowered.

Alko’s gross profit margin varies slightly between different product groups. Alko operates efficiently, and its average gross profit margin is just 17 per cent.

Alko’s gross profit is used to cover the costs of the network of stores, the salaries of sales staff, and the costs of supplies and quality control, for example.