An alcohol monopoly is a government monopoly on manufacturing and/or retailing of some or all alcoholic beverages, such as

beer Beer is an alcoholic beverage produced by the brewing and fermentation of starches from cereal grain—most commonly malted barley, although wheat, maize (corn), rice, and oats are also used. The grain is mashed to convert starch in the ...

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

and spirits. It can be used as an alternative for total prohibition of alcohol. They exist in all

Nordic countries The Nordic countries (also known as the Nordics or ''Norden''; ) are a geographical and cultural region in Northern Europe, as well as the Arctic Ocean, Arctic and Atlantic Ocean, North Atlantic oceans. It includes the sovereign states of Denm ...

except Denmark proper (only on the

Faroe Islands The Faroe Islands ( ) (alt. the Faroes) are an archipelago in the North Atlantic Ocean and an autonomous territory of the Danish Realm, Kingdom of Denmark. Located between Iceland, Norway, and the United Kingdom, the islands have a populat ...

), and in all provinces and territories in

Canada Canada is a country in North America. Its Provinces and territories of Canada, ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, making it the world's List of coun ...

except

Alberta Alberta is a Provinces and territories of Canada, province in Canada. It is a part of Western Canada and is one of the three Canadian Prairies, prairie provinces. Alberta is bordered by British Columbia to its west, Saskatchewan to its east, t ...

(which privatised its monopoly in 1993). In the

United States The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...

, there are some alcoholic beverage control states, where

alcohol Alcohol may refer to: Common uses * Alcohol (chemistry), a class of compounds * Ethanol, one of several alcohols, commonly known as alcohol in everyday life ** Alcohol (drug), intoxicant found in alcoholic beverages ** Alcoholic beverage, an alco ...

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. The main geography of Taiwan, island of Taiwan, also known as ''Formosa'', lies between the East China Sea, East and South China Seas in the northwestern Pacific Ocea ...

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 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 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 ...

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. In 1894, the

Russian Empire The Russian Empire was an empire that spanned most of northern Eurasia from its establishment in November 1721 until the proclamation of the Russian Republic in September 1917. At its height in the late 19th century, it covered about , roughl ...

established a state monopoly on vodka, 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 alcoholic b ...

of alcohol in Norway in 1919, the wine-producing nations demanded a reflexive policy regarding the goods exported from Norway, and Vinmonopolet 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 alcohol monopoly that same year. In

Estonia Estonia, officially the Republic of Estonia, is a country in Northern Europe. It is bordered to the north by the Gulf of Finland across from Finland, to the west by the Baltic Sea across from Sweden, to the south by Latvia, and to the east by Ru ...

, when the country was part of the Russian Empire, the abovementioned Russian Empire vodka monopoly was in place until 4 September 1914, when alcohol prohibition was enacted due to

World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...

. This prohibition lasted '' de facto'' until approximately 1917 and ''

de jure In law and government, ''de jure'' (; ; ) describes practices that are officially recognized by laws or other formal norms, regardless of whether the practice exists in reality. The phrase is often used in contrast with '' de facto'' ('from fa ...

'' until the end of World War I the following year. Alcohol prohibition was again enacted from 30 December 1918 until the spring of 1919 during Estonian War of Independence. As a result of social upheavals during said periods, the Estonian government, as an alternative to total prohibition, decided to institute the ''tšekisüsteem'' on 1 July 1920, which allowed individual municipalities to control the sale and distribution of alcoholic beverages, while the capital city of Tallinn additionally also allowed 25 fine dining restaurants to sell alcohol. Estonia abolished the ''tšekisüsteem'' on 31 December 1925 and retail sales of all alcoholic beverages began the following day. In

Latvia Latvia, officially the Republic of Latvia, is a country in the Baltic region of Northern Europe. It is one of the three Baltic states, along with Estonia to the north and Lithuania to the south. It borders Russia to the east and Belarus to t ...

, similarly to Estonia, a government monopoly on the production of vodka () existed from 3 April 1920 until the Soviet occupation of Latvia in 1940. From 1922 to 1930, the spirits monopoly ensured from 12.7% to 18.4% of state revenue. In the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Northwestern Europe, off the coast of European mainland, the continental mainland. It comprises England, Scotlan ...

, the sale and distribution of alcohol in

Carlisle Carlisle ( , ; from ) is a city in the Cumberland district of Cumbria, England. Carlisle's early history is marked by the establishment of a settlement called Luguvalium to serve forts along Hadrian's Wall in Roman Britain. Due to its pro ...

, Gretna,

Cromarty Firth The Cromarty Firth (; ; literally "kyles traitsof Cromarty") is an arm of the Moray Firth in Scotland. Geography The entrance to the Cromarty Firth is guarded by two precipitous headlands; the one on the north high and the one on the ...

and Enfield were nationalised as part of the State Management Scheme in order to reduce drunkenness for workers at the nearby armament factories during the

. The Enfield scheme ended in 1921 and the remaining schemes ended in 1973 when they were privatised. The Taiwan Tobacco and Liquor Corporation 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 in 1946. After the end of World War II in 1945, the incoming

Kuomintang The Kuomintang (KMT) is a major political party in the Republic of China (Taiwan). It was the one party state, sole ruling party of the country Republic of China (1912-1949), during its rule from 1927 to 1949 in Mainland China until Retreat ...

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 the southernmost States and union territories of India, state of India. The List of states and union territories of India by area, tenth largest Indian state by area and the List of states and union territories of Indi ...

. It controls the Indian-made foreign liquor (IMFL) trade in the state. A similar function is also performed by Kerala State Beverages Corporation (BEVCO) within the Indian state of

Kerala Kerala ( , ) is a States and union territories of India, 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 ...

Examples

Canada

* Provincial Liquor Crown Companies —

** BC Liquor Distribution Branch —

British Columbia British Columbia is the westernmost Provinces and territories of Canada, province of Canada. Situated in the Pacific Northwest between the Pacific Ocean and the Rocky Mountains, the province has a diverse geography, with rugged landscapes that ...

** 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 ...

** New Brunswick Liquor Corporation —

New Brunswick New Brunswick is a Provinces and Territories of Canada, province of Canada, bordering Quebec to the north, Nova Scotia to the east, the Gulf of Saint Lawrence to the northeast, the Bay of Fundy to the southeast, and the U.S. state of Maine to ...

** Newfoundland and Labrador Liquor Corporation —

Newfoundland and Labrador Newfoundland and Labrador is the easternmost province of Canada, in the country's Atlantic region. The province comprises the island of Newfoundland and the continental region of Labrador, having a total size of . As of 2025 the populatio ...

** Northwest Territories Liquor Commission —

Northwest Territories The Northwest Territories is a federal Provinces and territories of Canada, territory of Canada. At a land area of approximately and a 2021 census population of 41,070, it is the second-largest and the most populous of Provinces and territorie ...

** Nova Scotia Liquor Corporation —

Nova Scotia Nova Scotia is a Provinces and territories of Canada, province of Canada, located on its east coast. It is one of the three Maritime Canada, Maritime provinces and Population of Canada by province and territory, most populous province in Atlan ...

** Nunavut Liquor and Cannabis Commission —

Nunavut Nunavut is the largest and northernmost Provinces and territories of Canada#Territories, territory of Canada. It was separated officially from the Northwest Territories on April 1, 1999, via the ''Nunavut Act'' and the Nunavut Land Claims Agr ...

** Liquor Control Board of Ontario —

Ontario Ontario is the southernmost Provinces and territories of Canada, province of Canada. Located in Central Canada, Ontario is the Population of Canada by province and territory, country's most populous province. As of the 2021 Canadian census, it ...

** Prince Edward Island Liquor Control Commission —

Prince Edward Island Prince Edward Island is an island Provinces and territories of Canada, province of Canada. While it is the smallest province by land area and population, it is the most densely populated. The island has several nicknames: "Garden of the Gulf", ...

** Société des alcools du Québec —

Quebec Quebec is Canada's List of Canadian provinces and territories by area, largest province by area. Located in Central Canada, the province shares borders with the provinces of Ontario to the west, Newfoundland and Labrador to the northeast, ...

** Saskatchewan Liquor and Gaming Authority —

Saskatchewan Saskatchewan is a Provinces and territories of Canada, province in Western Canada. It is bordered on the west by Alberta, on the north by the Northwest Territories, on the east by Manitoba, to the northeast by Nunavut, and to the south by the ...

** Yukon Liquor Corporation —

Yukon Yukon () is a Provinces and territories of Canada, territory of Canada, bordering British Columbia to the south, the Northwest Territories to the east, the Beaufort Sea to the north, and the U.S. state of Alaska to the west. It is Canada’s we ...

India

* Kerala State Beverages Corporation —

India India, officially the Republic of India, is a country in South Asia. It is the List of countries and dependencies by area, seventh-largest country by area; the List of countries by population (United Nations), most populous country since ...

* TASMAC —

Middle East

* Qatar Distribution Company –

Qatar Qatar, officially the State of Qatar, is a country in West Asia. It occupies the Geography of Qatar, Qatar Peninsula on the northeastern coast of the Arabian Peninsula in the Middle East; it shares Qatar–Saudi Arabia border, its sole land b ...

* Tekel —

Turkey Turkey, officially the Republic of Türkiye, is a country mainly located in Anatolia in West Asia, with a relatively small part called East Thrace in Southeast Europe. It borders the Black Sea to the north; Georgia (country), Georgia, Armen ...

Nordic countries

All Nordic countries except

Denmark Denmark is a Nordic countries, Nordic country in Northern Europe. It is the metropole and most populous constituent of the Kingdom of Denmark,, . also known as the Danish Realm, a constitutionally unitary state that includes the Autonomous a ...

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

(1992–) * Alko –

Finland Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...

(1932–) * Vínbúðin –

Iceland Iceland is a Nordic countries, Nordic island country between the Atlantic Ocean, North Atlantic and Arctic Oceans, on the Mid-Atlantic Ridge between North America and Europe. It is culturally and politically linked with Europe and is the regi ...

(1961–) * Vinmonopolet –

Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. The remote Arctic island of Jan Mayen and the archipelago of Svalbard also form part of the Kingdom of ...

(1922–) * Systembolaget –

Sweden Sweden, formally the Kingdom of Sweden, is a Nordic countries, Nordic country located on the Scandinavian Peninsula in Northern Europe. It borders Norway to the west and north, and Finland to the east. At , Sweden is the largest Nordic count ...

(1955–)

United States

* National Alcohol Beverage Control Association —

** Oregon Liquor and Cannabis Commission —

Oregon Oregon ( , ) is a U.S. state, state in the Pacific Northwest region of the United States. It is a part of the Western U.S., with the Columbia River delineating much of Oregon's northern boundary with Washington (state), Washington, while t ...

** Pennsylvania Liquor Control Board —

Pennsylvania Pennsylvania, officially the Commonwealth of Pennsylvania, is a U.S. state, state spanning the Mid-Atlantic (United States), Mid-Atlantic, Northeastern United States, Northeastern, Appalachian, and Great Lakes region, Great Lakes regions o ...

References

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