Icelandic Beer & Alcohol
A Fun, Honest Guide to Drinking Culture, History & What to Try in Iceland
Before we get into what’s good to drink in Iceland today, we need to look back — because Iceland’s relationship with alcohol (especially beer) is one of the strangest in Europe.
Yes, Iceland once banned alcohol entirely.
And yes… beer stayed illegal long after everything else was allowed.
Here’s the story — and what you should try while you’re here.
A Short, Strange History of Alcohol in Iceland
1915: Total Alcohol Ban
Under strong influence from the Temperance Movement, Iceland banned all alcohol in 1915.
1922: Wine Returns (Thanks, Portugal)
Portugal threatened to stop importing Icelandic fish unless Iceland bought its wine.
So… wine was allowed again.
1935: Alcohol Ban Lifted — Except Beer
When prohibition ended, everything came back except beer.
Why?
Why Was Beer Illegal in Iceland?
The ruling class believed that the working population would not be able to control themselves if beer became easily available.
Their reasoning went like this:
- Hard liquor was for special occasions or weekends.
- But beer? Beer could be consumed anytime.
- Educated Icelanders studying in Denmark had seen heavy drinking among Danish workers — partly because Copenhagen’s water quality was terrible, making beer a safer drink.
So the belief formed that Icelanders would drink beer all day, every day.
(We doubt it, but we love the story.)
The Cultural Effect
With beer off the menu, Icelandic drinking culture became centered on drinking for intoxication, not flavor.
Reykjavík nightlife became famous for its hard-charging locals who partied until morning.
1980s: The Pressure Builds
People traveling abroad began bringing beer back home (sometimes more than their duty-free quota…), and Icelanders got a taste for it.
Finally, on March 1st, 1989, beer became legal again — a day still celebrated as B-day.
Now, Iceland’s craft beer culture is alive and thriving.
What Icelandic Alcohol You Should (and Shouldn’t) Try
Brennivín (“Black Death”)
Iceland’s most iconic spirit.
- 37%
- Potato-based
- Flavored with caraway
- Traditionally consumed as a shot
- Serve very cold
A fun story to take home — and a great bottle to bring back for friends.
Icelandic Gin – Surprisingly Excellent
Gin production has exploded in Iceland, and several brands are genuinely world-class.
Recommended:
- Himbrimi Gin
- Ólafsson Gin
These make excellent souvenirs.
Whisky – Just Don’t
We’ll be blunt:
Icelandic whisky is not there yet.
Aging requires patience, and Icelanders are… enthusiastic people.
Stick to imported whisky if you want the good stuff.
Wine in Iceland
Iceland is far too far north to produce wine, but restaurants and bars offer a wide international selection. You’ll have no trouble finding good wine anywhere you dine.
Beer in Iceland – Now We’re Talking
Since Iceland’s first microbrewery opened in 2007, beer culture has exploded. You will find an impressive variety of high-quality Icelandic beers across the country.
Notable breweries include:
- Kaldi – Iceland’s first microbrewery
- Einstök – widely available internationally
- Segull 67 – from North Iceland
- Vatnajökull Beer – unique and region-specific; hard to find but fun to taste
For classic Icelandic lagers on tap:
- Egils Gull
- Viking Gyltur
Both are easy-drinking, refreshing, and widely available.
Fun Icelandic Shots to Try
A few uniquely Icelandic spirits make great gifts:
Birkir & Björk
Birch-infused liqueurs — one sweet, one bitter.
Opal Vodka Shots
Only for those who share Iceland’s deep love of licorice.
Visitors either adore it or absolutely don’t… but it’s a great story either way.
Where to Buy Alcohol in Iceland
Alcohol is sold in three places:
1. Duty Free
When you arrive, you’ll see Icelanders flocking to the duty-free store — alcohol is much cheaper there, and everyone tries to maximize their quota.
2. Vínbúðin – State-Run Liquor Stores
This is the only place to buy wine, spirits, and beer stronger than 2.25%.
3. Bars & Restaurants
Great for tasting local beer and gin in a relaxed setting — but expect higher prices.
Supermarkets only sell light beer (up to 2.25%).
Iceland’s Relationship With Alcohol Today
Because access was historically limited and alcohol taxed heavily, Iceland has traditionally had lower physical harm from alcohol compared to many Western countries.
However, as Iceland becomes more like mainland Europe in drinking habits and availability, this may slowly change.
Still — today’s visitors find a vibrant, modern drinking culture with:
- Excellent craft beer
- Creative local gin
- A few unforgettable Icelandic spirits