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04/28/2004 Archived Entry: "Beer too cheap? Gov't sparks a binge"

Posted by steve @ 02:30 AM EST [Link]

ONLY THE DRUNK BELIEVE IN PLANNED ECONOMIES: (via reader Jorn K. Baltzersen) A price war has occurred in Norway but nothing like boring gasoline price wars, no in Norway it's all about beer.

Norwegians rushed out to stock up on beer on Friday after authorities ruled it was too cheap following an unprecedented price war in a nation used to some of the most expensive alcohol on earth.

The price-cutting in Norway, whose sky-high alcohol taxes aim to curb drinking, has more than halved beer prices to 6.5 crowns ($1) for a 0.33 liter bottle in recent weeks.

The price is lower than the 6.7 crowns tax, meaning retailers are selling at a loss.

"The current price on beer is in breach of the alcohol law," Bjorn-Inge Larsen, director of the health directory, told a news conference, ordering retailers to boost prices or be stripped of their licenses to sell alcohol.

Seems the price war was started because Norwegians are buying a lot of their beer in Sweden and Denmark or make it at home. Jorn tells me in his email that "authorities are telling the hero retailers that they have to make money. The retailers must have a 'reasonable' profit."

Read on.