7-7.1: Other Types of Markets, Monopoly Markets

Question 1

In Sweden, what is the only retail outlet allowed to sell alcohol?

Answer 1

• the government-owned chain Systembolaget

- also some specialist independent distributors in Sweden, licenced under special conditions

Question 2

Describe staff at monopoly market retail stores.

Answer 2

• the stores and their staff do not promote individual products or producers
• they simply advise customers, based on their requirements
• removes any incentive for promotion or price reduction

Question 3

Give an example of a bureaucratic practice required for producers to enter the retail sector in a monopoly market.

Answer 3

• to get a wine stocked by Systembolaget, a producer must apply to become an approved supplier
• four times a year, Systembolaget issues tender requests for various styles or types of wine that it wants to add to its range
• approved producers may then submit samples
• samples tasted blind by a panel to decide which best correspond to each request
• once selected, wines will be tasted again and chemically analysed prior to launch to confirm that they are identical to the tasting samples

Question 4

Give a Canadian example of the monopoly market.

Answer 4

in Ontario, retail sales are controlled entirely by the Liquor Control Board of Ontario (LCBO), either through their own stores or by approved agencies (a number of local producers, including wine producers, are licensed to sell their own brands outside LCBO stores).

Question 5

What is the one Canadian province that has a private market for the wholesale distribution and retailing of alcoholic drinks? Who supervises this process closely?

Answer 5

• Alberta

- supervised closely by the Alberta Gaming and Liquor Commission