Vin Tragardh has denied accusations of bribery in the long-running Systembolaget scandal. The Swedish wine producer saw its contract with the state-owned alcohol retail monopoly cancelled early this month in light of the allegations.

Systembolaget has been at the centre of the scandal since late-2003, when the company claimed some of its managers had been offered incentives to display products more prominently in their stores. The first trials against suppliers and 18 former managers will begin in the next few weeks.

Vin Tragardh, which allegedly paid SEK900,000 (US$119,000) in bribes to Systembolaget's managers, has decided to settle the dispute through arbitration.