Why invest in Altia
We have identified three key strengths that we believe provide us with competitive advantage and make Altia interesting as an investment.
Market leader in the Nordic wine and spirits market through our own and partner brands
Our Nordic brands are rooted in the Nordic heritage and are among the best-known wine and spirits brands in the region. To further complement our own brand portfolio, we also distribute well-known wine and spirits brands in our home markets from about 150 partners. Together, our own and partner brands form a wide assortment, which covers all relevant categories and price points. With our extensive brand portfolio and our strong innovation capabilities, we can meet market trends and the needs of our customers.
Our flagship brands are Koskenkorva, O.P. Anderson and Larsen. Other iconic Nordic brands are among others Chill Out, Blossa, Xanté, Jaloviina, Leijona, Explorer and Grönstedts.
Altia’s large partner brand portfolio includes brands such as Bollinger, Codorníu, Jack Daniel’s, Pasqua, Faustino, Trapiche, Nederburg, Tarapacá, Laroche, Lindeman’s and Penfolds.
Our own and partner brand portfolio gives us a leading market position in wine and spirits in the stable and profitable Nordic market. The value of the Nordic wine and spirits market, including Finland, Sweden, Norway and Denmark, is estimated to be EUR 12.4 billion. The share of spirits is about 35%, and of wine about 65%. In volume terms, spirits have reached about 77.4 million litres, with vodkas and whiskies the two largest categories. The wine market volume is about 517 million litres, with red wine being the single biggest category, accounting for about half the volume.*
During the period 2012–2018, the value of the Nordic wine and spirits market grew by 1.9%. For the period 2019–2023, the market value is estimated to grow by 3.3%.*
During the period 2012–2018, the volume growth of the Nordic wine and spirits market was 0.5%. For the period 2019–2023, the market volume growth rate is estimated at 1.1%.*
In Finland, Sweden and Norway, most wine and spirits are sold through state retail monopolies. We have extensive experience in operating with the monopolies and in regulated markets. This means considerable experience of monopolies’ preferences in terms of assortment and tenders, understanding of market trends, vast local market knowledge and consumer insight. We also have significant experience in operating in an environment with strict marketing restrictions.
Our best-in-class route-to-market sales channel execution capabilities and presence in all relevant sales channels provide a strong capacity to operate in the Nordic market, and make us a relevant partner for leading global wine and spirits houses. In addition to our route-to-market, we can extend our market knowledge and expertise in innovation and marketing to our partners.
*) Source: Euromonitor International Ltd. Alcoholic Drinks data 2019 edition (May 2019). Nordic market refers to Finland, Sweden, Norway and Denmark. Value data calculated in EUR with retail selling prices, fixed exchange rates and current prices. All growth rates are CAGR %.
-> Our brands
An integrated operating model enables competitive advantages and sustainability
The Koskenkorva distillery is a modern production plant with highly developed production and a versatile product range, which enables exceptional material efficiency. The Koskenkorva distillery’s operations are based on the bio- and circular economy: 100% of the grain is utilised. Thanks to the plant’s own bioenergy power plant and renewable fuel, the Koskenkorva plant has been able to reduce its carbon dioxide emissions by more than 50% since 2014. The plant’s steam generation fuel self-sufficiency is about 60%.
The distillery uses about 210 million kilos of Finnish grain every year in the production of grain spirits. Starch and feed components are produced as by-products from the distillation process. The Koskenkorva distillery also produces technical ethanol, based partly on the share of grain spirit that is not used in the production of alcoholic beverages. These industrial products – technical ethanol, starch and feed components – are sold to industrial customers, and they generate about 50% of the net sales of the Altia Industrial segment.
Industrial services, which generate about 50% of the net sales of Altia Industrial, include contract manufacturing and logistics services for leading wine and spirits companies at our bottling plant in Rajamäki. By sharing and combining operations and resources between our own brands, partner brands and industrial products and services, we can achieve synergies, economies of scale and full capacity utilisation.
Our sustainability roadmap includes numerical goals until 2030. The key goals are: carbon-neutral production by 2025; fully recyclable packaging by 2025; 10 per cent of our products to be low- or non-alcohol by 2030; zero absences attributable to occupational accidents by 2030.
Stable and diversified revenue streams and attractive dividend policy
Altia’s operations are characterised by stable and diversified revenue streams, underpinned by resilient consumption of wine and spirits. A significant part of the consumer beverage net sales comes through the state retail monopolies in Finland, Sweden and Norway (Alko, Systembolaget and Vinmonopolet), and about a third of the Group net sales is related to industrial (B2B) customers.
We focus on continuous profitability improvement, well-controlled capital expenditure and efficient working capital management. This supports stable cash flow generation, which enables an attractive dividend policy.
Our solid financial position enables future growth through expansion into new markets and/or brand acquisitions to further strengthen our Nordic brand portfolio.