Guidance for price changes for the price list period from February 6th 2018 to June 4th 2018 (last possible notification date December 1st 2017)

The pre-announced increase to alcoholic beverage tax is waiting for the parliamentary review and enactment, and Alko does not have any information on the possible schedule and content of the change.

It is still possible that the new alcoholic beverage taxes will take effect before the start of Alko’s next price list period (February 6th 2018). In this case the tax increases will be executed as a technical price increase to all products. Because the last possible notification date to change prices effective from February 6th onwards is 1st of December 2017, we kindly request our suppliers to consider the following:

  • The final schedule of the tax increase is undecided. The supplier is responsible for any assumptions it might make regarding the enforcement of the tax increase.

  • The government’s proposal’s content is not final.

  • If a supplier does not notify a new price by 1st of December, the possible increase of the alcoholic beverage tax will not impact the supplier’s absolute margin, and the technical price increase will carry through to the new price list period starting 6th of February as such. Alko’s purchase price including alcoholic beverage tax and the retail price will change when the tax increase takes effect.

  • If a supplier, who delivers products with delivery terms “TOP Alko’s shops” notifies a new purchase price including alcohol beverage tax by 1st of December, the notified price will come into effect regardless of the valid tax rate.

  • Suppliers delivering products to Alko’s central warehouse always notify purchase prices to Alko without the alcoholic beverage tax.

  • Alko will not change the 4 month long price list period -logic, which also stands as the basis for the assortment allocation model. This guarantees the previously communicated distribution levels for the products.

  • If the possible tax increase is enforced, Alko will consider the possibility of providing an extra price change notification opportunity during the price list period.