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Directory / Iceland

Distilleries and liquor manufacturers in Iceland

25 producers listed.

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Iceland at a glance

Population
392,404 (2025)
GDP
US$38.6 billion (2025)
GDP per person
US$98,323 (2025)
Capital
Reykjavik
Currency
Icelandic krona (ISK)
Languages
Icelandic
Climate
Subarctic coastal climate moderated by the North Atlantic Current; cool summers; the south coast is warmer, wetter and windier than the north; highlands are coldest. Records: 30.5 C high and -38 C low.
Alcohol status
legal
Legal drinking age
20 for on- and off-premise sales of all beverages (WHO 2018 country profile, status 2016: https://cdn.who.int/media/docs/default-source/country-profiles/substances-abuse/ISL.pdf)
Alcohol per adult
8.2 litres of pure alcohol a year (2022, WHO)
Spirits imports
US$10.2 million (2024); mainly from United Kingdom, Italy, France, Germany
Spirits exports
US$2.2 million (2024); mainly to United Kingdom, USA, Faroe Isds, Germany
Import duty on spirits
Standard (MFN) rate 2023: whisky 0.0%; vodka 0.0%; rum 0.0%; gin 0.0%
Popular brands
Brennivin (Originally state-owned ATVR; current producer not verified)
State monopoly
Retail sales of alcohol for off-premise consumption are run by ATVR, the State Alcohol and Tobacco Company of Iceland, through its Vinbudin stores (vinbudin.is).
The market
Retail is state-run through Vinbudin, which states it does not aim to maximise profit or promote in-store sales. Beer was banned until 1 March 1989 under the country's prohibition history (a 1908 referendum; partial repeal 1935). WHO total consumption was about 8.2 litres of pure alcohol per adult (2022). Brennivin remains Iceland's signature spirit.
Advertising
Legally binding regulations on alcohol advertising and product placement reported (WHO 2018 country profile, status 2016: https://cdn.who.int/media/docs/default-source/country-profiles/substances-abuse/ISL.pdf)
Sale restrictions
Off-premise sales only in Vinbudin state stores with set opening hours (e.g. Mon-Thu 11-18, Fri 11-19, Sat 11-18 in the Reykjavik area) and web store; restrictions on hours/days and intoxicated persons also reported (vinbudin.is; WHO 2018 profile).

Regulators: ATVR / Vinbudin (State Alcohol and Tobacco Company)

Compiled by Distillers Hub in October 2026 from the World Bank, WHO, UN Comtrade, the WITS tariff database and the sources below. Figures change: check with the regulator or a customs broker before you act.

Sources (8)

About Iceland

Iceland is an island nation located in the North Atlantic Ocean. The official language is Icelandic, and English is widely spoken. Its economy is largely known for marine fisheries, renewable geothermal energy, and international tourism.

The spirits market

Alcohol is legal in Iceland, though off-premises retail is restricted to the state monopoly, ÁTVR, and commercial imports require a licensed wholesaler. Spirits face a 0% import duty, an excise duty of 192.85 ISK per centilitre of pure alcohol, and 11% VAT. Domestic producers make gin, vodka, aquavit, brennivín, schnapps, and single malt whisky. Exporters of premium spirits, aged rums, and whiskies can access monopoly tenders and on-premises venues by partnering with local wholesale licensees.

Licences, import duty and labelling rules in Iceland

Spirits importers and distributors in Iceland

Duty-free and travel-retail shops in Iceland

Who makes liquor in Iceland? This list covers 25 liquor manufacturers and distilleries — Þoran Distillery ehf. (Thoran Distillery), 64° Reykjavik Distillery (Víngerð Reykjavíkur ehf.), Íslenska Áfengisfélagið ehf. [Icelandic Spirits Company], Hovdenak Distillery ehf. and more: whisky, rum, gin, vodka, brandy, neutral spirit (ENA) and local spirits producers, with their towns, products and websites. See also how to import or export liquor to Iceland and the licences needed to make it there.

Listings are compiled from public sources. Companies marked Verified have confirmed their details. If this is your company, claim the profile free to correct it, or ask us to remove it. Not listed? Add your company free.

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