Beer has a long, winding story in Iceland, stretching from early settlement to its unexpected absence for most of the last century. Today, local lagers fill glasses across the country, but just a few decades ago, having a pint of average-strength beer was not only unusual, it was illegal.
Historic brews and changing tastes
When Norse settlers arrived in Iceland, beer, known as “öl,” and mead were familiar drinks. In fact, early Icelandic poetry contains references to the drinking of ale. Brewing was part of daily life, and equipment for making beer could be found in homes and even at bishoprics and monasteries. Yet, Iceland’s cold climate, especially during the period known as the Little Ice Age, made it difficult to grow barley locally, creating obstacles for consistent beer production.
By the Middle Ages, the word “bjór” emerged, first used for imported beers flavoured with hops. Icelanders enjoyed these foreign styles, sometimes so much that they lingered at the ships of merchants to drink imported brews. Malt (for brewing) was considered a staple, although from the 18th century, locally-produced spirits, especially brennivín, gradually began to eclipse beer as the drink of choice due to trade policies and convenience.
From prohibition to craft revival
In the wave of temperance movements in the early 1900s, Iceland banned all alcohol in a 1908 referendum, partly out of concerns over public health and also as a gesture of cultural independence. Beer, associated with Denmark, was no longer seen as a patriotic drink. Although the ban was partly relaxed for wine imports in the 1920s, full-strength beer remained prohibited until 1989.
The workaround was to mix low-strength beer (capped at 2.25% alcohol by volume) with spirits such as brennivín, a solution often deemed undrinkable by those who tried it. Smuggling and homebrewing persisted, but local tastes shifted toward spirits and later, when restrictions eased, to wine and beer. March 1, 1989, when beer over 2.25% ABV was finally legalised, is still known as “Beer Day” (“bjórdagurinn”).
Since then, beer has rapidly become Iceland’s favourite alcoholic beverage. According to a 2014 World Health Organization report, over 60% of the alcohol consumed in Iceland at that time was beer. In 2007, Icelanders bought nearly 19.4 million litres of beer.
Most Icelandic beer is pale lager between 4.5–5.5% alcohol. State-owned stores, called Vínbúðin and operated by ÁTVR, have a monopoly on retail alcohol sales, though some small breweries can sell directly on-site. Iceland also has one of the highest beer taxes in Europe.
Craft brewing has surged since the late 2000s, leading to a lively mix of breweries across the country. While giants like Egill Skallagrímsson Brewery and Víking put out the bulk of beer sold, dozens of smaller brugghús (breweries) now offer styles ranging from Czech pilsners and hoppy local inventions to robust stouts and rare wild beers. Some, like the Smiðjan brewery in Vík, pioneered direct-to-customer sales from the brewery, challenging the state’s retail monopoly.
Sources
- Wikipedia
- Wikipedia (Icelandic) in Icelandic
