Starting in 1999, Sweden officially entered the EU wine sector with a quota of 250,000 litres p.a. Since then, the Swedish wine sector, predominantly located in southern Sweden, has commercialised and become a market in the agricultural area. As in other wine producing countries, the Swedish wine sector is dominated by family-owned businesses. It is established in gastronomy tourism research that e.g. wine tourism promote the regional image and attract new tourists to the region. About 50 wineries produce wine in southernmost Swedish region Scania (in Swedish: ‘Skåne’). Some of them have been commercially successful in linking wine production with tourism. Still, the sector appears to be unable to take-off.
Aim. This paper aims at discussing the wine tourism in southern Sweden and its reliance on family business development. Three research questions are proposed to be answered: (1) is there a potential for wine tourism in southern Sweden? (2) What structural problems challenge the development of the Swedish wine tourism? (3) What is the impact of family businesses on wine tourism?
Main approach. This is a market analysis based on secondary data. The discussion focuses on structural challenges, the marketing environment, to identify the key elements for family enterprises in entering a new market.
Key arguments/findings. Factors such as grapes, climate or technical issues regarding wine production cause little problems. The challenges to overcome lay in structural problems, e.g. a monopoly market due to the government alcohol monopoly, legal constraints, lack of marketing and promotion, lack of viticulture knowledge, networking and cooperation with local enterprise, and, hence, a relatively limited demand for Swedish wine.
For family enterprises, wine tourism appears the most suitable opportunity to run a profitable business in the wine sector, and, hence, the family enterprises are, as in all wine producing countries, a key factor for wine production development.
Conclusion. Most wine producers in southern Sweden have a profound interest and competence in wine producing from a technical side. At the same time, the lack of viticulture knowledge, marketing and promotion, networking and cooperating with local enterprise may partly explain why the Swedish wine sector does not take-off. The Swedish government alcohol monopoly rather represents a challenge than an insurmountable obstacle; the small local Swedish producers of e.g. vodka, gin, brandy and whiskey have successfully managed to deal with these legal constraints. As soon as the family owned Swedish wine sector understands how to attract new target groups with an unexpected, exotic and unique product, the Swedish wine tourism will take-off.