Consumption trends
Surveys on alcohol consumption show no major changes in recent years except for youth alcohol consumption which has declined extensively and Iceland has been ranked amongst the lowest adolescent consumers of alcohol in Europe, according to studies.
In 1998, 42% of 15 to 16 year old Icelanders had become drunk during the past 30 days whereas in 2014 only 6% of students report the same. Daily smoking and the use of cannabis has also decreased dramatically.
Source: UNGT FÓLK 2014 – GRUNNSKÓLAR: Menntun, menning, félags, – íþrótta- og tómstundastarf, heilsa, líðan og vímuefnaneysla unglinga í 8., 9. og 10. bekk á Íslandi. Pages 69-76.
Surveys on adult drinking show no major change. In 2007, 94,9% said in a survey that they had sometime during their lifetime used alcohol, whereas in 2012 the ratio was 95,9%.
Frequent drinking and binge drinking has declined slightly during these years, but number of occasional drinking increased a little instead.
Source: http://www.landlaeknir.is/servlet/file/store93/item22830/Framkvaemdaskyrsla_2012_loka.pdf. Pages 119-124.
After the financial crises of 2008, alcohol consumption decreased, probably due to decreased purchasing power and increased alcohol taxes. Alcohol consumption is now slowly increasing again peaking in 2015 and with a slight decrease in 2016.
Looking at a longer period alcohol consumption has risen quite a significantly. According to Statistics Iceland consumption of alcoholic beverages based on sales figures in Iceland was 2,015 thousand litres of pure alcohol in 2016 compared with 1,324 thousand litres in 2000 and 716 thousand in 1980.
The figures on quantity do not take into account alcohol imported by ship and aircraft crews and tourists entering the country, alcohol exported by the ÁTVR and others or alcohol sold to the Duty Free Store at Keflavík Airport.
Source: Statistics Iceland (21 June 2017)
Political situation
Alcohol policy in Iceland, being one of the strongest in the western world, has seen fierce opposition in the recent years. Several political initiatives have threatened to weaken the traditional Nordic alcohol policy, from abolishing retail monopoly system to allowing alcohol and tobacco advertising.
In February 2017 four parties – the ruling coalition of the Independence Party, the Reform Party and Bright Future, in addition to the Pirate Party – introduced a bill to parliament that aimed to permit the sale of alcohol in private shops, starting at the beginning of 2018. Doctors, public health officials and NGOs protested the change. And even domestic microbreweries came out in opposition to the bill, arguing that abolishing the state monopoly stores Vínbúðin, would only benefit larger breweries while hurting small producers.
Icelanders have supported the monopoly system and a new poll published by Kjarninn (conducted by Zenter in February 2017) affirmed that once again. Poll results showed that 61.5% of respondents were opposed to the sale of alcohol in private shops, with only 22.8% supporting the measure but 15.7% having no opinion.
Iceland´s alcohol policy was strongly supported also by the international public health community when NordAN, supported by European Alcohol Policy Alliance Eurocare and a list of different national and international organisations, sent a letter to Parliament members in Iceland urging them to “drop the bill proposing abolition of a public monopoly on sales of alcohol and of the alcohol advertising ban.”
On May 31, 2017, NordAN board member from Iceland, Arni Einarsson, informed the network that “the alcohol bill will not be taken to a final discussion in the Parliament. Today is the last working day of the present session. Now we will see if they start again next autumn when the next Parliament session starts.”
Elections 2017
On 15 September 2017, the three-party coalition government collapsed after the departure of Bright Future over a scandal involving Prime Minister Bjarni Benediktsson’s father. Parliamentary elections were held in Iceland on 28 October 2017. Though many opinion polls in the run-up to the election indicated an increase in support for the Left-Green Movement, the Independence Party retained its position as the Althing’s largest party. Following the election, four-party coalition talks led by the Left-Greens ensued; however, after the Progressive Party rejected the possibility, a three-party coalition led by the Left-Greens including the Independence Party and Progressive Party was negotiated. After formally receiving the mandate to form a coalition on 28 November, Left-Green leader Katrín Jakobsdóttir was designated Prime Minister to lead the new government on 30 November. (Source: Wikipedia)
Homebrewing
New parliament continued with alcohol issues and started from homebrewing, which is currently illegal in Iceland, but a bill (March 2018) proposing its legalisation was reintroduced in parliament. Backed by 10 MPs from the Pirate Party, Independence Party, Social Democratic Alliance, and the Reform Party, the bill proposed legalising home brewing for personal consumption. Ívar J. Arndal, CEO of the State Alcohol and Tobacco Company of Iceland, released a statement on the bill where he urged the government to consider public health and social responsibility in reviewing the bill, but did not express direct opposition. He added that the bill has not made a distinction between the home brewing of beer and wine and stronger liquor, which is contrary to similar legislation in most countries in the region, such as England and Denmark.
In April 2018 Iceland´s Ministry of Education and Culture was considering lifting the ban on advertising alcohol and tobacco products. A majority of the committee on independent media proposed the change, publishing a report on the matter this past January. The committee stated the advertisements could present a large source of income for independent media in Iceland. Again, the plan met strong opposition from public health community from home and abroad.
In June 2018 Arni Einarsson, the NordAN board member from Iceland, reported: “It is now clear that the bill on allowing the sale of alcohol in ordinary stores and abolition of the advertising ban on alcohol will not pass the Parliament this time, once again. It never reached the level of being discussed in the Parliament. It is a relief but it does not mean that it will not appear once again next fall when the next Parliament session starts. The same fate faced the bill on allowing farm sale of alcohol. It was not processed in the Parliament.”
Pricing
The tax on alcohol has increased several times since 2008. The first tax rise came when alcohol tax was put up by 12.5 percent from December 15th 2008, then by 15 percent from May 29th 2009 and by a further 10 percent from January 1st 2010. This time, there was an additional four percent tax charged on beer and wine and one percent more on spirits. The tax was also raised by 5, 1% (average) January 1st 2012 and 3% in beginning of 2014. Latest alcohol tax increase – 2% – was done in January 1, 2018.
In September 2008 the due of for a calculated centiliter of the alcohol spirit in wine was 52,8 ISK. In 2017 (with additional raise of 4.7 percent) it was 106,8 ISK, which results in a 102% raise.
The tax system explained with an example of Vodka looks like this: It is ISK 7,300 (USD 65, EUR 62), 94 percent of which goes to the Icelandic state. Only ISK 434, goes to the producer or the importer. The rest is divided as follows: alcohol tax is ISK 5,419; bottle deposit is ISK 20; Vínbúðin, the state-run liquor store, gets ISK 705; and value added tax is ISK 724.
Sources: Iceland Review and Ice News
Availability
According to a survey conducted in May 2013, 56% were satisfied with the current system of alcohol sales in Iceland.
Source: Alko
Icelanders support retail monopoly system
A survey from October 2014, carried out by Fréttablaðið newspaper, reveals that 67 per cent of Icelanders are opposed introducing new laws that allow sale of wine and beer in grocery stores; 30 per cent are in favor.
The ground for the survey was a MP bill submitted to parliament (Alþingi) in September 2014. The bill, if passed, would have permitted the sale of alcohol beverages in private shops instead of only in The State Alcohol and Tobacco Company of Iceland (ÁTVR) stores in the country as it is now. Similar bills have been submitted and ,,killed“ six times before.
In 2016 a new poll, conducted by Fréttablaðið, Vísir and Stöð 2, showed that some 62% of Icelanders are against alcohol being sold in private shops and grocery stores, while 38% were in favour. When all responses are taken into account, 35% said they supported the sale of beer and wine in food stores, while 56% were opposed, and 9% were undecided. The results show a distinct change from the last time a poll was done on the subject, last November, when 47% of respondents were against the sale of alcohol in private shops, while 41% supported the idea, and 12% had no position on the matter. Source: The Reykjavik Grapevine.
In October 2015, NordAN General Assembly adopted a resolution stressing that the monopoly system is an important corner-stone of Iceland´s effective alcohol policy. NordAN “strongly urges members of the Icelandic Parliament, Alþingi, to veto the bill proposing the abolition of a public monopoly on sales of alcohol and authorizing the right to sell alcohol at all retail outlets which is now being dealt with by the Parliament.”
The bill continued in the Parliament and was (March 2016) approved by a majority of members of the Icelandic Parliament (‘Alþingi’) General Affairs Committee. The bill received the endorsement of a cross-party majority of committee MPs and moved on to Alþingi for further legislative processing. As with earlier attempts, it didn´t go through and was stopped in the process.
In February 2017 four parties – the ruling coalition of the Independence Party, the Reform Party and Bright Future, in addition to the Pirate Party – introduced a bill to parliament that aimed to permit the sale of alcohol in private shops, starting at the beginning of 2018.
A new poll published by Kjarninn (conducted by Zenter in February 2017) showed that 61.5% of respondents were opposed to the sale of alcohol in private shops, with only 22.8% supporting the measure but 15.7% having no opinion.
On May 31, 2017, NordAN board member from Iceland, Arni Einarsson, informed the network that “the alcohol bill will not be taken to a final discussion in the Parliament. Today is the last working day of the present session. Now we will see if they start again next autumn when the next Parliament session starts.”
Marketing and advertising
Alcohol Law (Áfengislög) states that “all advertising and marketing is banned.” In addition, The Law on Media states that commercial messages and teleshopping for alcohol are forbidden. It is also prohibited to show consumption or
any other usage of alcohol in advertising or for information on any other commodity or service. Law on
radio broadcasting states that radio programs may not be sponsored by entities that are forbidden to advertise their product or service.
While article 20 of the current alcohol law has a total ban on alcohol advertising, the alcohol industry has found and uses loopholes regarding beer – for example by advertising low alcohol content versions with same firm brand and trademarks. Advertising was common in newspapers but when police put a focus on editors instead of the industry they have decreased but increased in TV instead. Are also not uncommon as sponsors on radio programs and are seen in sports arenas, especially football areas.
As mentioned earlier in April 2018 Iceland´s Ministry of Education and Culture was considering lifting the ban on advertising alcohol and tobacco products. A majority of the committee on independent media proposed the change, publishing a report on the matter this past January. The committee stated the advertisements could present a large source of income for independent media in Iceland. The plan met strong opposition from the public health community from home and abroad and was subsequently removed from the agenda.
According to a study conducted by MMR (Market and Media Research) in April 2018 the majority of Icelanders were also opposed to allowing alcohol and tobacco ads. Over 60% of respondents reported being opposed to such marketing and 42% reported being “very opposed.” Only 18% of respondents were in favor of the ban on alcohol and tobacco ads being lifted.
Alcohol policy strategy
There is available a comprehensive policy on alcohol- and drug prevention until 2020 adopted by the government in 2014. The first alcohol action plan based on this policy was supposed to be introduced in 2014. It has not yet been launched.
Main topics of the policy are:
To limit access to alchol and other drugs
Protect vulnerable groups against negative influences caused by alcohol and other drugs
Prevent young people from starting to use alcohol and other drugs
Reduce number of those who develop harmful use of alcohol and other drugs
To ensure integrated service based on best knowledge and quality for people with alcohol and drug problems
To reduce number of deaths caused by alcohol and drugs.
The policy also emphasizes the necessity of public health perspectives when decisions are made concerning alcohol and drugs and the importance of activating the whole society in awareness and solidarity for actions taken regarding alcohol and drugs.
Source: http://www.velferdarraduneyti.is/media/rit-og-skyrslur-2014/Stefna-i-afengis–og-vimuvornum-desember-2013.pdf
In addition to this there are clear cornerstones in alcohol policy in Iceland confirmed by laws and regulations like:
Monopoly for off-premise sales for strong beer, wine and spirits;
20 years minimum legal age limits for on- and off-premise sales for beer / wine / spirits,
High alcohol tax;
Maximum 0,05 promille legal blood alcohol concentration (BAC) when driving a vehicle;
Ban on alcohol advertising.
Recent policy papers concerning or including alcohol related issues show no indications of changing these cornerstones, except a MP bill submitted to the parliament in September 2014 which has not been passed yet.
Civil society
Iceland has a long history and tradition of non-governmental non-profit organizations working in various fields. Many are engaged in health and social welfare, sports and education. Some have formed coalitions or networks around certain issues to strengthen their efforts and position. One of these networks is Cooperation Council for Alcohol and Drug Prevention in Iceland – Samfo. Samfo is a cooperative platform for more than twenty national NGO‘s in Iceland. The aim of the cooperation is to activate and strengthen cooperation between non-governmental organizations which support an active alcohol and drug control policy in the country. Policy that has public interest and public health promotion as a goal.
Samfo has launched and executed some national prevention projects in the field of alcohol and drugs. Every year the network organizes so-called Week 43; awareness week with focus on prevention and the role of NGO’s in the society.
There is great interest among the member organizations to strengthen this network and deepen their cooperation.
Reports
In a survey by the Medical Directorate of Health in Iceland, conducted in November/December 2013, about 47% of the respondents said that relative(s) or someone in their closest social environment had drunk too much once or more often during the last 12 months; about 60% said this had had negative impact on them. 30% said they had been harassed by drunken people in bars, restaurants or private parties during the last 12 months. 13% said so in a similar survey conducted in 2001. Young people were more exposed than the older ones. 25% had been annoyed by drunken people in the streets or other open public places; 22% said this had scared them. Young people and people living in the capital area were more likely to complain about this.
Source: http://www.landlaeknir.is/servlet/file/store93/item22838/Talnabrunnur_mars_2014.pdf