By Chris Ayliffe, Arctic Meta
Beer in Iceland has enjoyed a dramatic career. It was banned for most of the twentieth century, returned to legal sale in 1989, and then made up for lost time with impressive enthusiasm (and Icelanders tend to love a bjór).
Today, travellers can choose between familiar Icelandic lagers, small batch ales, experimental stouts and beers brewed with local herbs. Reykjavík has a lively craft beer scene, while small breweries now regularly appear beside geothermal towns, fishing villages and remote stretches of the Ring Road (you can either bathe in Kaldi up north at Iceland’s only beer spa).
This guide covers the history, breweries, prices, laws and best places to try Icelandic beer. Get your glass ready for an Arctic pour.
Why Beer Was Banned in Iceland
Iceland introduced full prohibition in 1915 after a public vote. Wine returned in the 1920s, partly because Spain threatened Iceland’s valuable fish trade unless Spanish wine could be imported.
Spirits became legal again in 1935. Strong beer remained banned, however, because campaigners believed an affordable, everyday drink could encourage heavier alcohol consumption (or as the Brits call it, becoming a legend).
Beer containing more than 2.25 per cent alcohol was therefore unavailable through legal retail channels. Icelanders could buy wine and spirits, yet an ordinary pint remained apparently too dangerous for civilisation. Viking logic had taken an interesting turn, as I couldn’t imagine them toasting a successful raid with a can of diet coke for an early night.
Some bars attempted to recreate beer by mixing weak pilsner with spirits. The drink was known as bjórlíki and seems to have offered all the elegance of a petrol station cocktail.
The ban became increasingly difficult to justify as foreign travel grew and Icelanders encountered normal beer culture abroad. Parliament eventually approved its return (folded like a deck of cards), ending one of Europe’s strangest surviving alcohol restrictions.
Beer Day and the Return of Icelandic Beer
Beer became legal again on 1 March 1989. The date is now known as Bjórdagurinn, or Beer Day.
The original prohibition had lasted 74 years. On the first day of legal sales, Icelandic bars and alcohol shops were understandably busy. A nation that had been trusted with volcanic eruptions, Atlantic storms and fermented shark could finally be trusted with lager.
Beer Day is still marked on 1 March, particularly in Reykjavík. Breweries and bars may introduce special releases, tasting events or extended celebrations around the date.
The end of the ban also created space for a modern brewing industry. Large producers initially dominated, but small breweries began appearing during the following decades.
That young history gives Icelandic brewing a certain freedom. There are fewer ancient rules to protect and fewer grey bearded traditionalists insisting that every recipe must resemble something made in 1647.
What Icelandic Beer Is Like Today
Lager remains widely available, especially in restaurants, hotels and rural bars. Gull,Viking, and Einstök are two names visitors are likely to encounter throughout the country.
The craft scene offers far greater variety though if you want to try some of the edgier drinks. Icelandic breweries produce pale ales, India pale ales, wheat beers, sours, porters, stouts and seasonal releases. Tap lists change regularly, which makes tasting flights useful for visitors who prefer exploration to committing themselves to half a litre of experimental liquorice stout (not my jam if I’m honest).
Iceland’s clean water is an obvious advantage in brewing. Some producers also work with Arctic thyme, berries, seaweed, smoked ingredients or flavours connected with traditional Icelandic food.
This creativity fits naturally into a trip built around local culture. Travellers who explore Iceland slowly will find that breweries often reveal as much about a town as its museum or harbour (and often make for a more fun visit).
Winter brings richer beers and darker evenings, while summer suits lighter lagers and long afternoons outside. Seasonal planning is covered in my guides to visiting Iceland in winter and things to do in Iceland during summer.
If you want to sample the hundreds of varieties of Christmas beers, make sure you come after October. Some are fantastic….others less so.
Icelandic Beer Styles and Brands to Try
Gull and Viking are useful starting points for anyone seeking a straightforward Icelandic lager. They are crisp, familiar and unlikely to begin an argument with your dinner.
Einstök is known internationally for styles such as white ale, pale ale and porter. Kaldi helped establish Iceland’s modern small brewery movement, while Borg Brugghús became known for a broad and frequently inventive range.
Malbygg appeals to drinkers who favour modern India pale ales, sours and stronger releases. RVK Brewing produces a changing selection in Reykjavík, while Ölverk and Smiðjan connect brewing directly with South Iceland road trips (no, not drink driving).
Rather than searching for one supposedly definitive Icelandic beer, try several styles. A tasting flight allows you to compare lager, pale ale, stout and sour without turning the evening into a minor endurance saga.
Ask what was brewed locally and what has recently arrived on tap (usually to the man with either a large beard or a slightly pretentious moustache). Small batches can disappear quickly, and the most memorable beer may be one you never see again.
The Best Breweries and Taprooms in Reykjavík
Reykjavík is the easiest place to explore Icelandic craft beer without worrying about who must drive.
Skúli Craft Bar is one of the city’s established craft beer destinations. Its changing taps usually include Icelandic breweries alongside selected international beers, and the staff can guide visitors through unfamiliar styles.
MicroBar is another useful stop for rotating taps and tasting flights. It suits drinkers who want variety rather than allegiance to one brewery.
RVK Brewing combines a working brewery with a relaxed taproom outside the busiest central streets. You should expect house beers, experimental releases and a setting where the brewing process feels close rather than hidden behind heroic made up marketing language.
Central venues such as Bastard Brew & Food and Ægir taprooms combine beer with casual food. Opening hours and tap lists change, so check directly before crossing the city in horizontal rain.
Reykjavík’s centre is compact enough for a walking route. I recommend you begin with food (always a good tactical choice when planning a drinking session), visit two or three bars, and resist the inner Viking instinct to conquer every tap before midnight.
Finding Craft Breweries Around Iceland
Icelandic breweries now appear across the country, often in towns that travellers once treated as quick fuel stops.
In North Iceland, Bruggsmiðjan produces Kaldi beer near Árskógssandur. The nearby Beer Spa turns brewing ingredients into a bathing experience, with drinkable beer kept safely separate from the bath itself. But, to be clear, yes you can drink as much beer as you want while bathing for around 30 mins to an hour…assuming you are not the designated driver.
East Iceland has small producers such as KHB Brewery and Distillery in Borgarfjörður Eystri (an awesome spot to see Puffins also). Its harbour setting and remote location make the visit feel closely connected with the village.
Breweries in rural areas often keep shorter or seasonal hours. Some tours require advance booking, particularly outside summer. But this is Iceland – you will give them a call and at the thought of a visitor they will likely open up and show you around.
A brewery route can be combined with hiking, geothermal bathing and scenic drives. Travellers heading inland should consult my guide to the Icelandic Highlands rather than assuming a promising beer justifies an unsuitable mountain road. The last I’ve checked there isn’t a brewery in the Highlands also so you’ll have to bring your own.
Where to Drink Beer in South Iceland
South Iceland has two particularly convenient craft beer stops.
Ölverk Pizza and Brewery sits in Hveragerði, a geothermal town near the Golden Circle. The brewery uses geothermal energy in its production process and pairs its beers with wood fired pizza. Brewery tours may be available for organised groups.
Farther east, Smiðjan Brugghús operates in Vík. It serves beer brewed locally alongside burgers, wings and smoked dishes, making it a practical stop after Reynisfjara or the South Coast waterfalls. Brewery tours and tastings are also offered.
Other restaurants around Selfoss, Hella and Vík usually carry at least a few Icelandic beers on tap. My South Iceland restaurant guide helps place these stops within a wider food route for those who want to get the best samples of South Iceland.
The sensible order is scenery, dinner, beer and accommodation. Rearranging that sequence may impress my best friend stalking your Insta stories, though it will greatly concern your car rental company.
Where to Drink Beer in West Iceland
West Iceland’s best known brewery stop is Steðji in Borgarfjörður.
This family run farm brewery uses spring water and produces both familiar styles and unusual seasonal beers. A tasting room and brewery visits have operated with limited afternoon hours, so confirm availability before making the journey.
Borgarnes is the most practical place to find local beer with dinner. Farther west, restaurants in Stykkishólmur and Grundarfjörður often serve Icelandic lagers and craft options.
The best restaurants in West Iceland provide useful food stops, while my previous guide to things to do in West Iceland helps turn a brewery visit into a full day schedule with the odd thing to see and do between beers (a bit of an odd stag do if that’s the plan, however).
West Iceland rewards relaxed planning. Distances may look modest, but waterfalls, lava fields and coastal viewpoints have a habit of stealing the afternoon, and this region is potentially the most variable across such short distances.
Where to Buy Beer in Iceland
Standard beer is not sold in ordinary Icelandic supermarkets. Products found beside the groceries are alcohol free or contain no more than 2.25 per cent alcohol.
Takeaway beer is mainly purchased through Vínbúðin, the state run alcohol retailer. Stores operate across Iceland, although rural branches may have limited opening hours and smaller selections (you also don’t want to get caught out on one of Iceland’s many bank holidays as they simply won’t be open).
Check the nearest branch before driving into the countryside. Discovering that the shop closed two hours earlier is an authentic Icelandic alcohol experience, though not a particularly satisfying one when you are more used to grabbing a few cans at your local supermarket back home.
Visitors can also buy alcohol from the arrivals duty free shop at Keflavík Airport for an added saving. The airport shop operates around the clock, and travellers must remain within Iceland’s import allowance.
Duty free shopping can save money, but it is still worth buying some local craft beer later. Airport efficiency should not remove every element of discovery from the trip.
Icelandic Beer Prices and Happy Hours
Beer in Iceland is expensive. A regular pint in Reykjavík commonly costs around 1,200 to 1,500 ISK, while stronger or more unusual craft beers may cost more (at the time of writing, I need to add).
Happy hour prices often fall between roughly 800 and 1,000 ISK. Offers usually run during the afternoon or early evening, although every venue sets its own schedule.
Vínbúðin is considerably cheaper than drinking in bars. Prices vary by strength, packaging and producer, so compare cans and bottles rather than assuming every Icelandic label carries the same heroic premium.
A tasting flight can offer better value than ordering several full glasses. It also reduces the chance of discovering, 500 millilitres too late, that smoked seaweed porter is not your spiritual calling (the toilet may be calling you).
Drinking Laws and Bar Etiquette
The legal age for buying alcohol in Iceland is 20. Vínbúðin staff place strong emphasis on checking identification, so younger visitors should carry a passport or accepted photo ID.
Iceland has a very low drink driving limit of 0.02 per cent. Even a small amount of alcohol may put a driver over the limit, so the only reliable rule is complete separation between drinking and driving.
Bars are generally informal. Order at the counter unless table service is clearly offered, and say “skál” when raising a glass which means cheers! (pronounce it like this: sk-owl!).
Card payments are normal, including for small purchases. There is little reason to carry a pouch of silver like a travelling saga merchant because most locals barely touch cash at all…in fact, I rarely even see bank cards, it’s all phone and watch payments literally everywhere.
Seasonal Beers and Festivals
Christmas beer receives serious attention in Iceland. Breweries release darker lagers, spiced ales, strong stouts and limited festive recipes as winter closes in.
Beer Day on 1 March brings special events and releases. Reykjavík has also hosted an annual Icelandic beer festival centred on local and international brewing. Event dates and formats can change, so confirm them before booking a trip around one festival.
Summer produces lighter beers suited to long evenings. Travellers visiting near the Icelandic summer solstice can finish a tasting while the sky remains stubbornly bright (and hopefully the weather stays stubbornly good).
Pairing Icelandic Beer with Local Food
Light lagers work well with white fish, fish and chips, pizza and simple seafood dishes.
Pale ales and India pale ales can handle burgers, smoked lamb and richer sauces. Their bitterness cuts through fat, which sounds scientific enough to justify ordering chips (as a Brit that’s my given birth right to follow).
Porters and stouts suit grilled meat, lamb, chocolate desserts and smoked flavours. Sour and fruit beers can work with lighter starters or salty food.
Traditional Icelandic dishes require experimentation. Fermented shark is usually served with schnapps rather than beer, perhaps because one cultural challenge per glass is sufficient.
The easiest method is to ask what the kitchen recommends. Local restaurants often choose beers that match their menus, especially when the brewery is nearby.
Planning a Safe Brewery Road Trip
Choose the designated driver before the first tasting. Iceland’s 0.02 per cent limit leaves no sensible room for negotiation.
Book brewery tours in advance and confirm opening hours on the day. Rural businesses may close for private events, winter breaks or weather conditions.
Plan the final tasting close to your accommodation. This is particularly important outside Reykjavík, where taxis will be limited (no Uber here) and distances between towns are greater than they appear.
Winter travellers should read these Iceland winter driving tips, whilst summer drivers should still prepare for wind and rain using this summer packing guide.
A cooler bag can protect bottles during the journey. Keep alcohol sealed in the car and never allow a brewery stop to dictate unsafe driving (you will be caught, even out in the rural regions).
Enjoying South and West Iceland from the Panorama Glass Lodge
A stay at the Panorama Glass Lodge can fit naturally at the end of a South or West Iceland food and beer route.
The South Iceland lodges provide access towards Hveragerði, Selfoss, Hella, Vík, and the immaculate Highlands. Whereas the West Iceland lodges sit near routes through Borgarfjörður and towards Snæfellsnes.
The Panorama Glass Lodge caters well for both couples and families alike. Guests can bring food and beer back to the lodge, park for the night and enjoy the landscape without further driving. The practical details are covered in the traveller’s guide to the Panorama Glass Lodge.
Couples can consider the Alva lodge, Freya lodge or Odin lodge if travelling along the South Coast. Larger groups can choose the Frigg family lodge in the west location, which includes additional space and a private sauna.
Private hot tubs create a suitably Icelandic end to the evening. In winter, guests may easily catch sightings and full spectacles of the Northern Lights from their private hot tubs.
Beer should stay out of glass containers around a hot tub, and moderation matters when bathing in hot water. Even the Vikings knew when the evening had reached a sensible conclusion (I like to at least assume).
Further information about lodge facilities is available in the frequently asked questions.