An alcohol monopoly is a

government monopoly In economics, a government monopoly or public monopoly is a form of coercive monopoly in which a government agency or government corporation is the sole provider of a particular good or service and competition is prohibited by law. It is a monopo ...

on manufacturing and/or retailing of some or all

alcoholic beverages An alcoholic beverage (also called an alcoholic drink, adult beverage, or a drink) is a drink that contains ethanol, a type of alcohol that acts as a drug and is produced by fermentation of grains, fruits, or other sources of sugar. The cons ...

, such as

beer Beer is one of the oldest and the most widely consumed type of alcoholic drink in the world, and the third most popular drink overall after water and tea. It is produced by the brewing and fermentation of starches, mainly derived from ce ...

wine Wine is an alcoholic drink typically made from Fermentation in winemaking, fermented grapes. Yeast in winemaking, Yeast consumes the sugar in the grapes and converts it to ethanol and carbon dioxide, releasing heat in the process. Different ...

and

spirits Spirit or spirits may refer to: Liquor and other volatile liquids * Spirits, a.k.a. liquor, distilled alcoholic drinks * Spirit or tincture, an extract of plant or animal material dissolved in ethanol * Volatile (especially flammable) liquids, ...

. It can be used as an alternative for total

prohibition of alcohol Prohibition is the act or practice of forbidding something by law; more particularly the term refers to the banning of the manufacture, storage (whether in barrels or in bottles), transportation, sale, possession, and consumption of alcoholic be ...

. They exist in all

Nordic countries The Nordic countries (also known as the Nordics or ''Norden''; lit. 'the North') are a geographical and cultural region in Northern Europe and the North Atlantic. It includes the sovereign states of Denmark, Finland, Iceland, Norway and Sw ...

except

Denmark proper ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of Denmark , established ...

(only on the

Faroe Islands The Faroe Islands ( ), or simply the Faroes ( fo, Føroyar ; da, Færøerne ), are a North Atlantic island group and an autonomous territory of the Kingdom of Denmark. They are located north-northwest of Scotland, and about halfway bet ...

), and in all provinces and territories in

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...

except

Alberta Alberta ( ) is one of the thirteen provinces and territories of Canada. It is part of Western Canada and is one of the three prairie provinces. Alberta is bordered by British Columbia to the west, Saskatchewan to the east, the Northwest T ...

(which privatised its monopoly in 1993). In the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...

, there are some

alcoholic beverage control state Alcoholic beverage control states, generally called control states, less often ABC states, are 17 states in the United States that, as of 2016, have state monopoly over the wholesaling or retailing of some or all categories of alcoholic beverage ...

s, where alcohol wholesale is controlled by a state government operation and retail sales are offered by either state or private retailers. An alcohol monopoly also existed in

Taiwan Taiwan, officially the Republic of China (ROC), is a country in East Asia, at the junction of the East and South China Seas in the northwestern Pacific Ocean, with the People's Republic of China (PRC) to the northwest, Japan to the no ...

between 1947 and 2002, which uniquely, did not actually serve as a form of reducing alcohol use, as was the case in the Nordic countries, Canada and the U.S., but was simply a continuation of the system established during

Japanese rule of Taiwan The island of Taiwan, together with the Penghu Islands, became a dependency of Japan in 1895, when the Qing dynasty ceded Fujian-Taiwan Province in the Treaty of Shimonoseki after the Japanese victory in the First Sino-Japanese War. The shor ...

. The Taiwanese market was gradually opened to overseas brands starting from 1987, with full liberalisation in 2002, the year when Taiwan was admitted to the WTO.

History

The alcohol monopoly was created in the Swedish town of

Falun Falun () is a city and the seat of Falun Municipality in Dalarna County, Sweden, with 37,291 inhabitants in 2010. It is also the capital of Dalarna County. Falun forms, together with Borlänge, a metropolitan area with just over 100,000 inhabitan ...

in 1850, to prevent overconsumption and reduce the

profit motive In economics, the profit motive is the motivation of firms that operate so as to maximize their profits. Mainstream microeconomic theory posits that the ultimate goal of a business is "to make money" - not in the sense of increasing the firm's ...

for sales of alcohol. It later went all over the country in 1905 when the Swedish parliament ordered all sales of vodka to be done via local alcohol monopolies.Systembolaget.s
About Systembolaget
In 1895, Russia established a state monopoly on alcohol, which became a major source of revenue for the Russian government. Following the

prohibition Prohibition is the act or practice of forbidding something by law; more particularly the term refers to the banning of the manufacture, storage (whether in barrels or in bottles), transportation, sale, possession, and consumption of alcoholi ...

of alcohol in Norway in 1919, the wine-producing nations demanded a reflexive policy regarding the goods exported from Norway, and

Vinmonopolet Vinmonopolet ( en, The Wine Monopoly), symbolized by Ⓥ and colloquially shortened to Polet, is a government-owned alcoholic beverage retailer and the only company allowed to sell beverages containing an alcohol content higher than 4.75% in Nor ...

was established in 1922, as a response to a deal with France, which allowed Norwegians to buy as much table wine of any kind as they wanted.Vinmonopolet.n
Vinmonopolet History
When prohibition was lifted on fortified wine in 1923 and spirits in 1926, Vinmonopolet assumed sales of these goods as well. Unlike most of its Nordic neighbours, Denmark proper never had any period of alcohol prohibition or any state-owned alcohol monopoly, giving rise to its relatively liberal alcohol laws and drinking culture, however, the Faroe Islands, a constituent country of the Kingdom of Denmark, enacted alcohol prohibition in 1908 following a referendum held the previous year. Faroese people were however allowed to import very limited quantities of alcohol from Denmark proper for personal consumption after 1928, and after a referendum to lift prohibition in the Faroe Islands failed in 1973, the Faroe Islands finally lifted alcohol prohibition in 1992 with the establishment of the

Rúsdrekkasøla Landsins Rúsdrekkasøla Landsins, or simply Rúsan, is the national alcoholic beverage retailing monopoly of the Faroe Islands, following the model of neighbouring Nordic alcohol monopolies Vinmonopolet, Systembolaget, Vínbúð and Alko. The company w ...

alcohol monopoly that same year. The

Taiwan Tobacco and Liquor Corporation Taiwan Tobacco and Liquor Corporation (TTL; ), is a state-owned manufacturer and distributor of cigarettes and alcohol, and also formerly (until 2002) a state-sanctioned alcohol beverage brewing and retailing monopoly, in Taiwan. Its most famou ...

is the modern-day descendant of a government agency originally established during Japanese rule in 1901 which was responsible for all liquor and tobacco products in Taiwan as well as opium, salt, and camphor. In 1922, the agency began selling Takasago Beer through the Takasago Malted Beer Company, which was subsequently renamed as

Taiwan Beer Taiwan Beer (, or ) is a large-market beer brewed by the Taiwan Tobacco and Liquor Corporation (TTL). The brand, an icon of Taiwanese culture, is the best-selling beer in the country. History The company today known as TTL, had its origins in ...

in 1946. After the end of World War II in 1945, the incoming

Kuomintang The Kuomintang (KMT), also referred to as the Guomindang (GMD), the Nationalist Party of China (NPC) or the Chinese Nationalist Party (CNP), is a major political party in the Republic of China, initially on the Chinese mainland and in Ta ...

preserved the monopoly system for alcohol and tobacco, and assigned the production of beer to the Taiwan Provincial Monopoly Bureau, which was renamed as Taiwan Tobacco and Wine Monopoly Bureau the following year. The Bureau exercised a monopoly on all alcohol and tobacco products sold in Taiwan until liberalisation of the Taiwanese alcohol market between 1987 and 2002, after which it was succeeded by the state-owned Taiwan Tobacco and Liquor Corporation which competes with many overseas brands today. The Tamil Nadu State Marketing Corporation (TASMAC) is a company owned by the Government of Tamil Nadu, which has a monopoly over wholesale and retail vending of alcoholic beverages in the Indian state of

Tamil Nadu Tamil Nadu (; , TN) is a state in southern India. It is the tenth largest Indian state by area and the sixth largest by population. Its capital and largest city is Chennai. Tamil Nadu is the home of the Tamil people, whose Tamil language ...

. It controls the

Indian-made foreign liquor Indian-made foreign liquor (IMFL) is the official term used by governments, businesses and media in India to refer to all types of liquor manufactured in the country other than indigenous alcoholic beverages such as feni, toddy, arrack and other ...

(IMFL) trade in the state. A similar function is also performed by

Kerala State Beverages Corporation Kerala State Beverages (Manufacturing & Marketing) Corporation Ltd (BEVCO) is a Public sector undertakings in Kerala, public sector company fully owned by the Government of Kerala, it started under Civil Supplies Department in 1984 under the Mi ...

(BEVCO) within the Indian state of

Kerala Kerala ( ; ) is a state on the Malabar Coast of India. It was formed on 1 November 1956, following the passage of the States Reorganisation Act, by combining Malayalam-speaking regions of the erstwhile regions of Cochin, Malabar, South Ca ...

Examples

Canada

* Provincial Liquor Crown Companies — Canada **

BC Liquor Distribution Branch The BC Liquor Distribution Branch (BCLDB) is the governmental body responsible for distributing alcohol and cannabis products in the Canadian province of British Columbia. The BCLDB operates under the Ministry of Finance and was established in 19 ...

—

British Columbia British Columbia (commonly abbreviated as BC) is the westernmost province of Canada, situated between the Pacific Ocean and the Rocky Mountains. It has a diverse geography, with rugged landscapes that include rocky coastlines, sandy beaches, for ...

** Manitoba Liquor & Lotteries Corporation —

Manitoba Manitoba ( ) is a Provinces and territories of Canada, province of Canada at the Centre of Canada, longitudinal centre of the country. It is Canada's Population of Canada by province and territory, fifth-most populous province, with a population o ...

** New Brunswick Liquor Corporation —

New Brunswick New Brunswick (french: Nouveau-Brunswick, , locally ) is one of the thirteen provinces and territories of Canada. It is one of the three Maritime provinces and one of the four Atlantic provinces. It is the only province with both English and ...

Newfoundland and Labrador Liquor Corporation The Newfoundland and Labrador Liquor Corporation is a provincial crown corporation of the Canadian province of Newfoundland and Labrador. It is responsible for managing the importation, sale and distribution of beverage alcohol within the provinc ...

—

Newfoundland and Labrador Newfoundland and Labrador (; french: Terre-Neuve-et-Labrador; frequently abbreviated as NL) is the easternmost province of Canada, in the country's Atlantic region. The province comprises the island of Newfoundland and the continental region ...

** Northwest Territories Liquor Commission —

Northwest Territories The Northwest Territories (abbreviated ''NT'' or ''NWT''; french: Territoires du Nord-Ouest, formerly ''North-Western Territory'' and ''North-West Territories'' and namely shortened as ''Northwest Territory'') is a federal territory of Canada. ...

Nova Scotia Liquor Corporation The Nova Scotia Liquor Corporation (NSLC) is the Crown corporation which controls sales of alcoholic beverages and recreational cannabis in Nova Scotia, Canada. It is the sole distributor for these products and runs all retail outlets (108 acro ...

—

Nova Scotia Nova Scotia ( ; ; ) is one of the thirteen provinces and territories of Canada. It is one of the three Maritime provinces and one of the four Atlantic provinces. Nova Scotia is Latin for "New Scotland". Most of the population are native Eng ...

** Nunavut Liquor and Cannabis Commission —

Nunavut Nunavut ( , ; iu, ᓄᓇᕗᑦ , ; ) is the largest and northernmost territory of Canada. It was separated officially from the Northwest Territories on April 1, 1999, via the '' Nunavut Act'' and the '' Nunavut Land Claims Agreement Act'' ...

Liquor Control Board of Ontario The Liquor Control Board of Ontario (LCBO) is a Crown corporation that retails and distributes alcoholic beverages throughout the Canadian province of Ontario. It is accountable to the Legislative Assembly through the minister of finance. It wa ...

—

Ontario Ontario ( ; ) is one of the thirteen provinces and territories of Canada.Ontario is located in the geographic eastern half of Canada, but it has historically and politically been considered to be part of Central Canada. Located in Central Ca ...

** Prince Edward Island Liquor Control Commission —

Prince Edward Island Prince Edward Island (PEI; ) is one of the thirteen provinces and territories of Canada. It is the smallest province in terms of land area and population, but the most densely populated. The island has several nicknames: "Garden of the Gulf", ...

Société des alcools du Québec The Société des alcools du Québec (SAQ; ) is a provincial Crown corporation and monopoly in Quebec responsible for the trade of alcoholic beverages within the province. Organization The official legislation governing the SAQ's operations a ...

—

Quebec Quebec ( ; )According to the Canadian government, ''Québec'' (with the acute accent) is the official name in Canadian French and ''Quebec'' (without the accent) is the province's official name in Canadian English is one of the thirte ...

Saskatchewan Liquor and Gaming Authority The Saskatchewan Liquor and Gaming Authority (or SLGA) is a Treasury Board crown corporation responsible for the distribution, control and regulation of alcoholic beverages, cannabis and most gambling in the Canadian province of Saskatchewan. Its ...

—

Saskatchewan Saskatchewan ( ; ) is a Provinces and territories of Canada, province in Western Canada, western Canada, bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, to the northeast by Nunavut, and on t ...

** Yukon Liquor Corporation —

Yukon Yukon (; ; formerly called Yukon Territory and also referred to as the Yukon) is the smallest and westernmost of Canada's three territories. It also is the second-least populated province or territory in Canada, with a population of 43,964 as ...

India

– Kerala, India *

TASMAC The Tamil Nadu State Marketing Corporation (TASMAC) is a company owned by the Government of Tamil Nadu, which has a monopoly over wholesale and retail vending of alcoholic beverages in the Indian state of Tamil Nadu. It controls the Indian Made ...

— Tamil Nadu, India

Middle East

* Qatar Distribution Company – Qatar *

Tekel Tekel A.Ş. ( Turkish, literally ''single-hand'' or ''monopoly'' and generally capitalised as TEKEL) was a Turkish tobacco and alcoholic beverages company. It was nationalised in 1925 from a parastatal (government owned/controlled) company, the R ...

— Turkey

Nordic countries

All Nordic countries except

Denmark ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of Denmark , establish ...

have a government monopoly on the sale of strong alcohol. *

–

(1992–) *

Alko Alko Inc is the national alcoholic beverage retailing monopoly in Finland. It is the only store in the country which retails beer over 5.5% ABV, wine (except in vineyards) and spirits. Alcoholic beverages are also sold in licensed restaurant ...

–

Finland Finland ( fi, Suomi ; sv, Finland ), officially the Republic of Finland (; ), is a Nordic country in Northern Europe. It shares land borders with Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bot ...

(1932–) * Vínbúðin –

Iceland Iceland ( is, Ísland; ) is a Nordic island country in the North Atlantic Ocean and in the Arctic Ocean. Iceland is the most sparsely populated country in Europe. Iceland's capital and largest city is Reykjavík, which (along with its ...

(1961–) *

–

Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of ...

(1922–) * Systembolaget –

Sweden Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic countries, Nordic c ...

(1955–)

United States

* National Alcohol Beverage Control Association — United States **

North Carolina Alcoholic Beverage Control Commission The North Carolina Alcoholic Beverage Control Commission is an agency of the government of North Carolina within the state's Department of Public Safety. The Alcoholic Beverage Control bill, submitted to the state legislature in 1937, was enacted ...

Pennsylvania Liquor Control Board The Pennsylvania Liquor Control Board (PLCB) is an independent government agency that manages the beverage alcohol industry in Pennsylvania by administering the Pennsylvania Liquor Code. It is responsible for licensing the possession, sale, st ...

—

Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...

Virginia Department of Alcoholic Beverage Control The Virginia Alcoholic Beverage Control Authority (Virginia ABC, or previously known as the Virginia Department of Alcoholic Beverage Control) is one of the eleven public safety agencies under the Secretariat of Public Safety and Homeland Securit ...

** Maryland Alcohol Beverage Control

References

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