“They’re pushing the competitors out”: The Fight for Independence in Gothenburg’s Bar Scene
Andra Långgatan is a haven for students looking for the city’s most affordable beers. Still, beneath the charm of cheap pints lies the reality of independent bars and craft breweries struggling for representation around the city’s nightlife. Large corporations and major brewing companies are monopolizing beer deals. Competitive prices dominate the market, making it harder for independent establishments to get into the landscape of the Gothenburg nightlife.
By Hedda Berg
The infamous street Andra långgatan, referred to by locals as ‘Andra lång’, is one of the top locations for people wanting to grab a beer in the city of Gothenburg. For students embarking on their first night out in Sweden, prices in the city center can be daunting to their personal finances. Andra lång offers slightly lower prices. At pubs like Sejdeln you can grab a beer for the price of 33 Swedish crowns.
For students on the quest to find the cheapest beer in the city, Dirty Records, which is located at the beginning of the about 700 meters long Andra Långgatan, might not be the friendliest to the wallet. However, the slightly higher prices at the coffee and vinyl shop turned café, restaurant and bar offers a variety of beers from independent brewers.
“We are actually one of the few independent bars in all of Gothenburg”, says Thomas, one of the owners of Dirty Records.
Our editor Louise Ekberg enjoying a coffee at Dirty Records. Photo : Hedda Berg
Thomas and Erik, the dynamic duo running Dirty Records, became the new owners only three years ago. Beforehand, the bar and restaurant was a coffee shop and vinyl store. To keep the business running, Thomas and Erik had to change the whole concept.
“If we weren’t selling food and alcohol, the business wouldn’t make it”, Thomas says.
In the Quest for Independent Bars in Gothenburg
Red Lion, located by Mariaplan in Majorna, Haket near Masthuggstorget and Dirty Records together make up the three bars who haven’t signed deals with large brewing companies such as Spendrup and Carlsberg. Whilst there are several bars in Gothenburg which offer independent craft beers, it’s the big brewing companies that foot the bill.
Several of the popular bars and restaurants in Gothenburg are owned by a few big corporations. ESS group, Göteborgsfamiljen, Stureplatsgruppen and Götaplatsgruppen are the largest corporations in the restaurant, club and pub business in Gothenburg. In the past couple of years, these giants have expanded their influence over the city’s drinking and dining scene. ESS group now owns several bars and restaurants operating under smaller companies such as Esperanto and Shuffle group.
In the last three years the nightlife powerhouse Göteborgsfamiljen, who before 2021 went under the name Avenyfamiljen, opened seven drinking and dining spots in Gothenburg. The company runs several of the popular bars, restaurants and clubs in Gothenburg. A few of the establishments which the giant has in their portfolio are Yaki-Da, Kafé Magasinet, Moreno, Olssons Vin, Lounges and Ilse Krog, to name a few. Together, ESS group, Göteborgsfamiljen, Stureplatsgruppen and Götaplatsgruppen expand over 45 nightlife spots in Gothenburg. Because of their duopoly, these large corporations can bring down their beer prices, to a point where independents can’t compete.
In March this year, Göteborgsfamiljen lowered their beer prices at Moreno, a pizza place with an accompanying Biergarten, from 39 SEK to 35 SEK. In light of the lowered beer prices, a board member of Göteborgsfamiljen, Tobias Hamberg, wrote on the company’s official website in March that “many people in Gothenburg are struggling financially now that prices are sky-rocketing, and we [Göteborgsfamiljen] want to take the opportunity to give a little back. As a major player in the industry, we also hope to inspire other large companies to follow our example.” But according to Thomas, big companies are lowering the prices for other reasons than merely solidarity to the Gothenburg locals.
“When Moreno is lowering the prices, they do that because their contracts have a minimum of volume. They lose money if they don’t sell all the beer they import, so they prefer to lower the prices to not lose money”, Thomas says.
35 SEK Beer – A Money Machine for Big Companies
A beer for 35 Swedish crowns might be music to the ears of all struggling students, but for independent brewers it’s not all sunshine and rainbows. Robert Lagerström, freelance journalist and beer-expert at the Gothenburg Post, has long covered the issue of the limited beer market in Gothenburg.
“It becomes a one-track approach when an owner owns many establishments. The problem is that these big companies have bar-agreements, so they import beer for large discounts, allowing them to make more money”, he says.
Even though bars owned by the bigger companies offer some craft beer, the big brewing companies dominate the market. Large brewers like Spendrup and Carlsberg trap pub-owners because the bar has to sell large quantities of product from their partner breweries.
“They’re pushing the competitors out”, Robert Lagerström says.
To survive, independent bars need to raise their prices on beer. But then, less people want to go there because of higher prices and small breweries have a hard time entering the market. There needs to be a broader landscape, according to Robert Lagerström. Thomas tries to visit and support independent food and drink spots. But there just aren’t enough independent bars in Gothenburg, according to Thomas.
“I wish there would be more independent bars in the city. It creates a much more diverse and interesting market”, he says.
The MIJ-Post has tried to contact ESS group, Göteborgsfamiljen, Stureplansgruppen and Götaplatsgruppen, who has not responded.