Altia as an investment
We have identified six key strengths that we believe provide us with competitive advantage and make Altia interesting as an investment.
Nordic market leader with iconic alcohol brands and a large wines portfolio
Nordic market leader with a unique portfolio of iconic brands, which are rooted in the Nordic heritage and are among the best known spirits and wine brands in the region. In addition, Altia has an extensive wine portfolio including both own and numerous well-known partner wine brands. Altia’s brand portfolio is in a good position to meet both Nordic and global market trends.
Altia’s key exports brands are Koskenkorva, O.P. Anderson and Larsen. Other iconic Nordic brands are Chill Out, Blossa, Xanté, Jaloviina, Leijona, Explorer and Grönstedts.
Altia’s large wine portfolio includes numerous well-known partner wine brands such as Bollinger, Codorníu, Pasqua, Faustino, Trapiche, Nederburg, Tarapacá, Laroche, Lindeman’s and Penfolds.
Read more about our brands.
Experience and scale that provide strong capacity to operate on the stable and profitable Nordic market
Altia has strong capacity to operate in the EUR 12.4 billion Nordic wine and spirits market (Finland, Sweden, Denmark and Norway). The majority of our revenues in the market comes through the state retail monopolies in Finland, Sweden and Norway (Alko, Systembolaget and Vinmonopolet).
The historical value development of the Nordic wine and spirits market has been stable. During the period 2012–2017, the market value grew by 1.8% compared to the volume growth rate of 0.5%. For the period 2018–2022, the value of the Nordic wine and spirits market is estimated to grow by 2.5% compared to the estimated volume growth rate of 0.3%.*
We have a wide assortment in different product and price categories, and an ability to adjust production and work with wine producers to make local solutions. Altia also has considerable experience of monopolies’ preferences in terms of assortment, vast local market knowledge and understanding of market trends, as well as significant experience in operating in an environment with strict marketing restrictions.
*Source: Euromonitor International Ltd. Alcoholic Drinks data 2018 edition (May 2018)
Clear strategy that builds profitable growth
Altia’s strategy focuses on creating sustainable and profitable growth. Our growth strategy is based on growing Nordic core brands and strengthening strategic partnerships, channel expansion, executing a step change in wine initiatives and operational efficiency. New innovations and international potential of certain core brands are at the centre of the growth expectations. To support these organic strategic streams, we continue active brand portfolio management and development, including potential selective acquisitions and/or divestments.
Altia has a strong foothold in different product and price categories, including value-for-money products and local heritage brands whose demand has been stable. Our scale, wide assortment, product innovation capabilities, market expertise and consumer knowledge place us in a good position to react to the growth opportunities provided by Nordic market trends. Resources and investments have been concentrated to new products and co-operation models which Altia believes to bring growth in wines. E-commerce and other consumer websites, as well as retail and export are essential in our channel expansion.
Read more about our strategy.
Integrated operating model that creates economies of scale and synergies, and enables more sustainable production
Altia’s integrated operating model creates synergies and economies of scale and enables full capacity utilisation. We aim to maximise profits through sharing and combining operations and resources between our own brands, partner brands and industrial products. Through our operating model we can take wider advantage of our product development and innovation capabilities as well as market knowledge.
For Altia, responsibility is both a strategic priority and a key success factor in its business. The aim of Altia’s efforts in the area of corporate responsibility is to build sustainable long-term business. Altia wants to support the development of a modern and responsible Nordic drinking culture in its operating countries in accordance with the company’s purpose, Let’s Drink Better.
The Koskenkorva plant is based on bio and circular economy: 100% of the grain is utilised. Altia’s distillery in the village of Koskenkorva uses about 210 million kilos of Finnish barley a year. The distillery produces grain spirit for Altia’s alcoholic beverages. The share of grain spirit that is not used in the production of alcoholic beverages is processed into technical ethanol at Rajamäki. Barley starch and feed components are produced as by-products from the distillation process. These industrial products – technical ethanol, starch and feed components – are sold to industrial customers.
Environmental aspects are considered when we choose packaging materials and ingredients, and we aim to reduce the amount of energy and water consumption as well as waste in production.
Read more about our Corporate Responsiblity.
Experienced management team delivering on strategy effectively
Altia’s executive management team has a proven record of creating and executing the strategy. They have a strong and broad experience in the Nordic and Baltic alcohol markets as well as operating in a brand focused and trend driven market environment, which has been an important contributor in Altia’s financial development and success.
Read more about Altia's Executive Management Team.
Altia’s Board of Directors also has significant experience in operating in a listed company environment as well as understanding and having the capacity to resolve potential related challenges and opportunities.
Read more about Altia's Board of Directors.
Strong profitability and stable cash flow, and an attractive dividend policy
Since 2013, Altia has taken major strategic actions to improve its profitability by strengthening its own brands, streamlining its brand portfolio and improving its presence in key channels. We have also focused on developing our operational efficiency by simplifying the company structure and operations and improving capital efficiency.
Altia’s operations are characterised by stable and diversified revenue streams underpinned by resilient consumption of wine and spirits. A significant part of Altia’s net sales comes through the state alcohol retail monopolies in Finland, Sweden and Norway. By focusing on improving profitability, carefully managing capital expenditure requirements and efficiently managing working capital, Altia is able to support high and stable cash flow that enables an attractive dividend yield.
Read more in our financial reports.