Alko updates product segments for June / October 2020 allocation

Alko renews the product segments which serve as the base of the assortment allocation model.

The updates concern the renewal of the purchase terms for products with maximum 5.5% alcohol. All old brewery product segments (beers, ciders, mixed drinks) will be eliminated and they will be replaced with new segments, which allow the categorization of products to maximum 5.5% and over 5.5% of alcohol. The updates are linked to the guidance given to Alko by the Competition and Consumer Authority regarding the pricing of products with maximum 5.5% of alcohol. In the renewal some segments are also combined (i.e. lager and pils, dark and strong lager) and some are separated (IPA).

In addition, wine drinks with maximum 5.5% alcohol are also separated to their own segment. All current segments in wines will remain in use.

The new segments are listed in the attached table. The products will be locked to their new segments in the allocation calculation for the price list period starting on 4 February 2020. Products with over 5.5% alcohol will receive allocation for the first time according to the new segments for the price list period starting in October 2020. The assortment allocation model for products with maximum 5.5% alcohol will be renewed from June 2020 onwards. For these products the allocated shop coverages for June will not be published in February 2020, but in April 2020 instead.

All segments are listed on Assortment management webpage.