The climate of Iceland (particularly the cooling trend of the Little Ice Age, c. 1300–1850 locally) may have made beer production difficult as it became impossible to produce barley domestically.

Icelanders also worked around the restriction by adding strong alcohol, such as Brennivin, to their beers which, while effective, was described by historian Unnar Ingvarsson as tasting "interesting and totally disgusting.

"[3] In 1979, an Icelandic businessman, Davíð Scheving Thorsteinsson, attempted to bring beer into the country after a business trip.

While he lost his case the resulting press and attention provoked a new law which permitted Icelanders to bring 6 litres (12.2 pints) of foreign beer into the country.

[3] The two largest domestic brewers in Iceland are Egill Skallagrímsson Brewery and Víking (part of Coca-Cola European Partners).

Beginning in the late 2000s more small craft brewers have emerged which produce a wider variety of styles and have even won international awards for their beers.