Theo Nash
Iceland has a unique drinking culture and a complicated relationship with alcohol. With a history of prohibition, harsh weather conditions, limited resources, and trade regulations, Icelanders have had to get creative with their alcohol production. Today, Iceland produces several distinct liquors and spirits with international recognition, including the signature spirit Brennivin, a clear, savory, herbal spirit distilled from fermented grain mash and flavored with caraway. Other notable Icelandic beverages include vodka, beer, and schnapps. Alcohol in Iceland tends to be expensive due to high alcohol duties and taxes, and it is typically sold in state-run liquor stores called Vinbudin. Despite the high cost, Icelanders enjoy a lively drinking culture, with many unique bars and breweries to explore.
| Characteristics | Values |
|---|---|
| National drink | Brennivín |
| Other names for Brennivín | "Black Death", "Burning Wine" |
| Alcohol percentage of Brennivín | 37.5% to 40% ABV |
| Flavour base of Brennivín | Caraway or dill |
| Other popular drinks | Beer, vodka, schnapps, Topas, Fjallagrasa Moss Schnapps |
| Alcohol consumption | Icelanders are known to have a drink or two, particularly during happy hour |
| Alcohol production | Brewing and distillation techniques were brought to Iceland by Norse settlers in the 9th century |
| Alcohol availability | Alcohol is available in state-run liquor stores, bars, and restaurants |
| Alcohol duties | Iceland is known for its high alcohol duties, making alcohol expensive in the country |
| Drinking culture | Iceland has a distinct drinking culture with a history of prohibition |
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Iceland's national drink, Brennivín
The history of Brennivín is tied to the history of Iceland. Iceland was settled in the late 9th century by Norwegian and Celtic people. In 1602, the Danish king instituted a trade monopoly, the "Einokunarverslun", which meant that only certain Danish merchants could trade with Iceland. Mead, beer, honey and malt took up valuable space on the ships, whereas spirits took up less space, did not spoil, and could be sold for a much higher price. This led to the introduction of Brennivín, which was flavoured with caraway, an herb that grew freely in the wild arctic lands of Iceland.
The current version of Brennivín was formally introduced in 1935 when the prohibition was partially lifted, but the unique aquavit has been enjoyed in Iceland since the 17th century. The name Brennivín translates to "burnt wine", referring to how it is distilled over an open flame. The drink is typically served cold as a shot, with a beer, or as a base for cocktails. It is also traditionally served alongside hákarl, a type of fermented shark meat.
Brennivín has become a pop-culture icon, featuring in songs by the Foo Fighters and The Album Leaf project, and on television shows such as Blindspot. It has also gained international recognition, with exports to the United States, Germany, Canada, Denmark, Sweden and Norway.
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Beer
There are a variety of Icelandic beers to choose from, including Egils Sterkur and Gull. Sterkur is favoured by locals for its robust 6.2% alcohol content, though its taste is slightly bitter. Gull, on the other hand, has a lighter 5% alcohol content and a sweet, citrusy, malty flavour. Viking Gold and Einstock White Ale are also popular beer options in Iceland and can be found in government-run liquor stores or at Keflavik Airport duty-free.
It is worth noting that alcohol in Iceland is expensive due to high alcohol duties and taxes. Beer will typically cost the equivalent of $10 in most bars, and it is recommended to take advantage of happy hour deals or buy alcohol at the airport duty-free to save money.
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Vodka
Iceland has a complicated relationship with alcohol, with a history of prohibition, a harsh climate, limited resources, and trade regulations. Despite these challenges, Iceland has a thriving alcohol industry known for its innovation and craftsmanship.
One of the most well-known Icelandic liquors is Brennivin, considered the country's signature distilled beverage. It is produced by various Icelandic distilleries, each with its unique character, and has gained international recognition. Brennivin is distilled from fermented grain mash and combined with Iceland's soft, high-pH water, flavoured with caraway, giving it a savoury, herbal taste. It is typically enjoyed chilled as a shot, with a beer, or as a base for cocktails.
In addition to Brennivin, Iceland also produces its own fine vodka, notably the Katla and Reyka brands. Katla Vodka is named after one of Iceland's largest volcanoes and is produced using renewable geothermal energy from the same source. The vodka is distilled as many times as necessary to achieve the desired purity, resulting in a rich, smooth, and distinct flavour with notes of black pepper, coriander, and caraway.
Reyka Vodka is another popular Icelandic brand distilled in the coastal village of Borgarnes, surrounded by rich natural resources. The vodka is crafted using water from a glacial spring that runs through a 4,000-year-old lava field, ensuring purity and a crisp, clean taste. Reyka is distilled in small batches, with each distillation taking about 5 hours, resulting in exceptional quality. The distillery is also powered by geothermal energy from underground volcanoes, making it environmentally friendly.
Icelandic vodka reflects the country's unique natural resources and innovative spirit, contributing to its diverse and evolving alcohol industry.
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Schnapps
Iceland has a complicated relationship with alcohol, with a history of prohibition, a harsh climate, limited resources, and trade regulations. Despite these challenges, Iceland has a thriving alcohol industry with internationally recognised liquors, spirits, and breweries.
One of the most well-known Icelandic alcoholic beverages is Brennivín, a clear, savoury, herbal spirit distilled from fermented grain mash and flavoured with caraway. It is considered the country's signature distilled beverage and is often consumed chilled as a shot, with beer, or as a base for cocktails. Brennivín is sometimes referred to as a type of aquavit and has a long history in Iceland, dating back to at least the 17th century when it was imported by Danish merchants.
Brennivín is also known as the "black death" and is an integral part of Icelandic culture, featuring in songs, films, and television shows. It is produced by various Icelandic distilleries, each with its own unique character, and has gained international recognition.
The steeping of herbs in alcohol to create schnapps is a long-held tradition in Nordic countries, and Brennivín is considered a type of schnapps. Schnapps is a general term for a wide range of alcoholic beverages that typically contain a high concentration of alcohol and are flavoured with fruits or other ingredients. While the term originally referred to distilled beverages, it is now often used for flavoured spirits as well.
In Iceland, schnapps is typically made by steeping herbs in alcohol, resulting in a savoury, herbal spirit. The tradition of herb-steeping schnapps is not unique to Iceland and is common in other Nordic countries as well. While Brennivín is the most well-known schnapps in Iceland, there are likely other varieties produced by local distilleries and breweries.
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High alcohol taxes
Iceland has a complicated relationship with alcohol. With a history of prohibition, harsh weather, limited resources, and trade regulations, the country has had to be innovative with its alcohol production. Today, Iceland produces several distinct liquors and spirits, including the internationally recognised Brennivin, a potent, traditional caraway-flavoured schnapps. Beer was outlawed in Iceland until the late 1980s, but it is now available throughout the country.
Alcohol in Iceland is expensive, largely due to high taxes. In fact, Iceland has some of the highest alcohol taxes in the world. The majority of the price of alcohol goes towards taxes, with only a tiny fraction going to the producer or importer. For example, 84.4% of the price of a bottle of vodka is due to taxes. Similarly, a bottle of Finlandia vodka (1 litre/33.8 fl. oz) at a state monopoly liquor store costs 7,300 ISK, which is around 65.7 USD or 62 EUR. A similar bottle in the US or Europe would cost between 20 USD and 40 EUR.
The high alcohol taxes in Iceland are levied by alcohol volume. This means that the price difference between expensive, high-quality beer or wine and less expensive, lower-quality brands is not as large, proportionately, as it might be otherwise. For example, a top-notch craft beer will not be much more expensive than generic mass-produced lager.
The high taxes have been criticised by the restaurant industry, which claims that they will make Iceland a less attractive tourist destination and put unnecessary stress on an already-struggling industry. The Icelandic Federation of Trade has also expressed concern, arguing that taxes on alcohol have become "completely nonsensical" and that beer taxes should be lowered rather than wine taxes raised.
Despite the high prices, Icelanders do enjoy a drink, particularly during happy hour. Alcohol is available in state-run liquor stores and bars across the country, and visitors can also purchase it at duty-free shops at Keflavik Airport.
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Frequently asked questions
Iceland has a thriving alcohol industry, producing several distinct liquors, spirits, and beers with international recognition. The national drink of Iceland is Brennivín, a clear, unsweetened schnapps with a 37.5% alcohol content. Other Icelandic liquors and spirits include vodka, beer, and Topas, a liquor crafted from a blend of various herbs and liquorice.
Alcohol is available in bars and restaurants, as well as state-run liquor stores called Vinbudin. Vinbudin typically open from 11 am to 6 pm and can be found in large villages and towns, offering a selection of beers, wines, and spirits. It is also possible to buy alcohol at the duty-free shop at Keflavik Airport, which can be more economical due to tax exemptions.
Alcohol in Iceland is notoriously expensive due to high alcohol duties and taxes. A bottle of spirits can cost more than twice as much in Iceland as in the US. A beer in a bar will cost around $10, and a bottle of wine in a restaurant typically starts from $50.
