Aquavit and Vodka

Production of such legendary Norwegian drinks as Linie Aquavit and Vikingfjord Vodka seems poised to fall into Swedish hands. An investment company based in Sweden said Tuesday it will buy 85 percent of Oslo-based distiller Arcus-Gruppen. Private equity firm Ratos of Stockholm said it will pay NOK 434 million (about USD 66 million) for Arcus, the entity set up in 1996 to produce, import and sell wines and spirits to the state-run alcohol retailing monopoly known as Vinmonopolet.
Co-investors with Ratos include Norwegian potato producer HOFF, with nearly 10 percent, and management with just over 5 percent. The seller is Sucra AS, a consortium formed by Jensen Invest of Denmark, Berentzen Gruppe of Germany and several small Norwegian investors who have included HOFF.
Both Norway and Sweden maintain government control over the sale of alcoholic drinks, because of political concerns over the consequences of alcohol consumption. They also heavily tax alcoholic products to discourage consumption.
Both countries, however, have been gradually forced to ease government control in order to meet more liberal market regulations set by the European Union (of which Sweden is a member) and the European economic cooperation in which Norway also participates.
Norway thus split up the retail and wholesale sides of the drinks business in 1996. Arcus was created as a result of that split and the state began selling off its stake. It had been reduced to 34 percent by 2003.
Kilde: Aftenposten