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Vinmonopolet’s purchasing procedures and product range

Vinmonopolet decides which products to launch in its “basic” and “one lot” ranges. Wholesalers decide which products are to be launched in the “to order”, “additional” and “test” ranges.

Tekst:
Vinmonopolet

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Foto:
Miss Boo

All products sold through Vinmonopolet come from suppliers who have entered into a wholesale agreement with Vinmonopolet.

Vinmonopolet has five product ranges:

  • Basic range
  • One lot range
  • To order range
  • Test range
  • Additional range

The basic and one lot ranges
The basic and one lot ranges consist of products purchased by Vinmonopolet in accordance with the agreed purchasing process and based on six-monthly launch plans, as well as products from the to order or test ranges that have qualified by achieving satisfactory sales.

Vinmonopolet publishes invitations to bid on the Vinmonopolet supplier portal and wholesalers submit offers that must comply with specified deadlines and procedures. All approved offers are tested by Vinmonopolet’s sensory testing laboratory, where a panel of expert assessors objectively and independent assess the degree of accordance to the relevant specification. Purchasing decisions are based on price, sensory quality and ability to deliver, as set out in the Regulations on AS Vinmonopolet’s purchasing activity, etc.

New products entering the basic range are guaranteed to be carried for at least 12 months (the introductory month + eleven months). The one lot range consists of products that are purchased in limited quantities. These products are carried until the lot has been sold out.

Vinmonopolet stipulates certain requirements for products that are to be launched in the basic and one lot ranges. They must be held in a warehouse in Norway one month before the launch, and the available quantity of the product must be sufficient for the category in which the product is to be initially launched.

The “to order” range
The to order range has been created to make available to customers the selection of products held by wholesalers in Norway that have not been accepted into the basic, one lot or test ranges.

These products must be available in the wholesaler’s warehouse in Norway from the first day of the month in which they are to be launched, and are subject to the same terms and conditions of delivery as products in the basic and one lot ranges. Wholesalers must be willing to make single bottle deliveries.

Products are registered through Vinmonopolet’s supplier portal, subject to the specified deadlines. The products in this range are sold through the online shop, but certain shops may also choose to carry them as part of their local range.

The additional range
The additional range consists of any other products that wholesalers have to offer. It is not a requirement for the products to be held in stock in Norway, and the wholesaler can specify a minimum delivery. Products in the additional range are not sold through the online shop, but certain shops may also choose to carry them as part of their local range. Products can be registered as they become available through Vinmonopolet’s supplier portal, subject to the specified deadlines.

The test range
The test range is an independent product range that aims to provide market access for products even if Vinmonopolet has not chosen to purchase the product. 

Each year, Vinmonopolet decides how many products it will launch in its test range, and wholesalers must express their interest by the specified deadlines. Vinmonopolet allocates product launches and launch dates between the wholesalers who have expressed their interest. 

At the end of the six-month test period (introductory month + five months), Vinmonopolet reserves the right to return unsold stock at the expense and risk of the wholesaler.

New product launches
Vinmonopolet launches new products six times a year – in January, March, May, July, September and November. 

Each launch has a special emphasis on products from a particular country, area or style. The aim is to strengthen Vinmonopolet’s position as specialist retailer, as well as giving customers lots of different and exciting products to choose from.

How long can a product remain on sale?
Vinmonopolet uses a ranking system based on the number of litres sold to decide which products it may want to retain in its basic range after the initial guaranteed period.

The ranking system is based on product groups, which are in turn subdivided into price segments. For each price segment, Vinmonopolet decides the number of products that it ideally wants to stock. Rankings are updated every month based on sales over the past six months, with products being discontinued every two months based on those rankings.

Products in the additional range are not covered by the ranking system. For a product to remain in the Vinmonopolet range, at least one sale must have been registered.

Shop-specific ranges
Vinmonopolet’s shops are split into seven categories, based on their anticipated sales over the coming year.

Each shop has a range that consists of three elements: a fixed basic range that is chosen centrally, an optional basic range and a local range chosen by the individual shop in response to local demand. The local selection can include products from all of the product ranges.

Price
Prices are stated in NOK DDP (Delivery Duty Paid). This means that the individual wholesaler is liable for all of the risks and costs associated with transporting the products to the designated place at the individual shop’s warehouse, including customs clearance, excise duties, taxes, VAT and any other charges.

Vinmonopolet is completely transparent in how it calculates mark-ups and retail prices. Vinmonopolet’s calculation is based on the principle that each product should cover its own costs, as well as giving Vinmonopolet a reasonable profit.

The mark-up applied by Vinmonopolet is a fixed rate of NOK 8.90 per litre, plus 22 percent of the purchase price excluding taxes and duties. The percentage mark-up gradually falls for products whose purchase price excluding taxes and duties is over NOK 80, and the total mark-up is never more than NOK 110 per unit.

Tenders

The product specifications basic and one-lot-range for are available here (Excel format). The document contain specifications for the products to be launched, information regarding distribution and deadlines, and the parametres by which samples will be judged. Samples are always blind-tasted.