Greenland’s Alcohol Policy Sparks Business Concerns
Recently, Greenland’s government, Naalakkersuisut, unveiled recommendations for an ambitious, multi-year alcohol policy grounded in evidence. Crafted by the Department of Health in collaboration with the Center for Public Health in Greenland and WHO/Europe, these proposals aim to address alcohol consumption through various strategies, including the potential establishment of a state monopoly on alcohol sales. Under this plan, KNI’s product division, Pilersuisoq, would oversee sales after a phased transition of five years.
The announcement has prompted a notable response from Greenland’s Business Association (GE), which is calling for an open dialogue while expressing skepticism towards the monopoly model.
Christian Keldsen, GE’s director, pointed out that the recommendations are currently just that—recommendations awaiting political deliberation. “We understand that these proposals are in their infancy and have yet to evolve into concrete political initiatives,” he stated.
Calling for Collaboration
Keldsen emphasized the exclusion of both the GE and retail representatives from the expert group’s discussions. “Neither our organization nor the retail sector has had the opportunity to contribute to the expert work. We believe we have valuable insights to offer, given our daily interactions with customers and our own initiatives aimed at moderating alcohol consumption,” he explained.
The retail sector, according to Keldsen, holds unique expertise in understanding consumer behavior and market dynamics. “Retailers are well-positioned to recognize what strategies effectively influence customer choices,” he noted.
Questioning the Monopoly
While GE acknowledges the pressing need for a modern alcohol policy in Greenland—one that champions responsible consumption—they firmly oppose the implementation of a monopoly. “We concur that a revised approach to alcohol policy is necessary to support individuals grappling with alcohol issues. However, a monopoly does not appear to be the solution,” Keldsen said, advocating for a cooperative approach rather than centralized control.
Economic Implications
Key concerns raised by the GE involve economic repercussions. The current alcohol sales model contributes to stabilizing prices of everyday goods through a cross-subsidization method. Keldsen warned, “Transitioning to a monopoly could elevate prices on staple goods, as alcohol sales currently help mitigate the costs of other items in stores.”
“The existing framework allows for reduced profit margins on various products, supported by the higher revenue from alcohol sales. Without this structure, basic groceries could become even more expensive,” he added.
Scrutinizing WHO’s Influence
Keldsen also criticized the reliance on the World Health Organization (WHO) as a supporting authority for the proposed alcohol monopoly. “Citing the WHO’s suggestion that alcohol monopolies have been effective elsewhere does not guarantee similar outcomes for Greenland,” he stated. He cited a lack of robust evidence demonstrating the efficacy of such monopolies, highlighting that most studies yield only correlations, not definitive conclusions.
Concerns Over Illicit Trade
Moreover, the GE fears that a state-run monopoly may inadvertently drive individuals toward illegal trade. “Limiting legal access to alcohol could spark increased illicit activities, such as smuggling or home production. Historical instances of alcohol bans in Greenland have shown a spike in the sales of materials like sugar and yeast,” Keldsen warned.
He further underscored that the proposal may clash with Greenlandic values centered on individual freedom and personal responsibility. “Greenland’s culture is rooted in the right of individuals to make their own choices. This fundamental principle may pose challenges to the acceptance of a monopoly system,” he noted.
A Commitment to Solutions
Despite the concerns raised, GE remains committed to participating in crafting effective strategies for responsible alcohol consumption in society. “We want to work collaboratively with the Greenlandic business community, including retail and hospitality sectors, to develop solutions that promote responsible drinking,” Keldsen affirmed.