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Master's Program 2004/2005 Technical and Fiscal Barriers ... - Lexnet

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61995J0189 European Court reports 1997 Page I-05909 9<br />

which are not apt to put domestic products at an advantage.<br />

49 It is true that the beverages selected are maintained in the basic assortment of Systembolaget only if<br />

their sales exceed a certain volume <strong>and</strong> gain a certain market share. However, this constraint, although it<br />

may have the consequence of h<strong>and</strong>icapping small producers, is not in itself apt to afford a direct or<br />

indirect advantage to domestic products. In any event, it appears justified both with regard to the freedom<br />

of choice which the monopoly has in its commercial policy <strong>and</strong> by the requirements inherent in its<br />

management. For its aim is to provide a variety of alcoholic beverages in all the monopoly's sales outlets<br />

during a specific period within limits compatible with the need to run the monopoly profitably.<br />

Furthermore, it does not concern products whose quantities are by nature limited, such as vintages or<br />

seasonal drinks, which are included in the `provisional' assortment.<br />

50 Fourth, there are other ways for traders to have their products marketed by the monopoly: those whose<br />

offers are not selected by Systembolaget may ask for their products to undergo a second qualitative test<br />

before a panel of consumers <strong>and</strong>, if they pass it, for the monopoly to market them on a trial basis for a<br />

given period. Products which have not been accepted by Systembolaget <strong>and</strong> which fulfil the objective<br />

conditions laid down in clause 4 of the agreement between the State <strong>and</strong> Systembolaget may be included<br />

in the `by order' assortment <strong>and</strong> sold at the customer's request. Finally, Systembolaget is required to<br />

import any alcoholic beverage at the request <strong>and</strong> cost of the consumer.<br />

51 Fifth, traders are entitled to be told the reasons for decisions taken by the monopoly regarding the<br />

selection of beverages <strong>and</strong> their maintenance in the `basic' assortment <strong>and</strong> may challenge such decisions<br />

before a board offering every guarantee of independence.<br />

52 So, having regard to the evidence before the Court, the criteria <strong>and</strong> selection methods used by<br />

Systembolaget do not appear to be either discriminatory or apt to put imported products at a disadvantage.<br />

The monopoly's sales network<br />

53 Mr Franzén contends that the sales network maintained by Systembolaget is restricted <strong>and</strong> does not<br />

offer the full range of beverages available, which restricts even more the possibilities of sale.<br />

54 It is true that a monopoly such as Systembolaget has only a limited number of `shops'. However, it<br />

does not appear from the information provided to the Court that the number of sales outlets are limited to<br />

the point of compromising consumers' procurement of supplies of domestic or imported alcoholic<br />

beverages.<br />

55 First of all, under the agreement which it has made with the State, Systembolaget must establish or<br />

close sales outlets on the basis of management constraints, consumer dem<strong>and</strong> <strong>and</strong> the necessities of alcohol<br />

policy <strong>and</strong> ensure that each commune which so wishes has a sales outlet <strong>and</strong> that all points of the territory<br />

are served at least by dispatch deliveries.<br />

56 Second, according to the information provided to the Court, alcoholic beverages may be ordered <strong>and</strong><br />

supplied in the monopoly's 384 `shops', through around 550 sales outlets as well as along 56 bus routes<br />

<strong>and</strong> on 45 rural post rounds. Furthermore, there is at least one `shop' in 259 of the 288 Swedish<br />

communes <strong>and</strong> Systembolaget is planning for every commune to have at least one `shop' in 1998.<br />

57 Finally, even if the retail network of Systembolaget is still imperfect, this circumstance does not<br />

adversely affect the sale of alcoholic beverages from other Member States more than the sale of alcoholic<br />

beverages produced in Sweden (see, mutatis mut<strong>and</strong>is, in relation to Article 30 of the Treaty, Banchero II,<br />

cited above, paragraph 40).<br />

The promotion of alcoholic beverages<br />

© An extract from a JUSTIS database<br />

33

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