The Swedish alcohol market has for many years been in the hands of the government. The question of the monopoly, its being or not being, has for a long time engaged both Swedish citizens and politicians. Since joining the European Union it has also been on the European agenda, trying to adapt Sweden to the more liberal alcohol politic in Europe.

The suppliers find themselves acting on a completely different market than a market based on free competition. The suppliers are faced with one retail channel to the stores which creates dependence and uneven power balance towards the retailer. In addition to this, their marketing activities are strictly limited due to the laws and claims. Corporate Social Responsibility is required goals given from the retailer upon the suppliers. The retailer is also set with strict term and rules from the government and has to gain the Swedish citizens approval in order to maintain their position as the only distribution channel. The supplier, primarily acting on the purpose of selling products and increasing the profit, differ from the retailer who mainly aim to limit and regulate the sales of alcohol.

In this difficult market a relationship between the supplier and the distributor is being built up and nourished. The relationship in the supply chain is based on four factors; trust, cooperation, commitment and conflict. These different factors are shaping and affecting the relationship between the supplier and the retailer. The diverse aims of these two organizations, together with the regulations of the market and the dependency between each other, have an effect and shape the relationship. The analyses argue that equal goals can lead to an increased commitment between the supplier and retailer. Further on the members of the supply chains appear to use problem solving to resolve a conflict to be able to maintain good cooperation and increase trust in the relationship.

The conclusion is that the retailer possesses the power in the relationship towards the supplier. All the relationship factors are important in this relationship but trust is required in order to obtain cooperation and commitment. Trust is also vital when it comes to solving a conflict.