The company was established on 17 April 1913 by Tómas Tómasson, who began production of a (1% alc/vol) beverage, malt extract.

At first, the operations of Ölgerðin Egill Skallagrímsson were based in two bedrooms in the basement of the Þórshamar house at Templarasund in Reykjavík, which Tómas had leased.

A year later, the company moved to the Thomsen house at Tryggvagata, and with this, the operating area grew significantly.

During the first production year, Ölgerðin sold around 38 thousand litres, mostly malt extract and white beer.

[1] Tómas Tómasson went to Copenhagen in 1915 to learn brewing at the Bryggeriet Stjernen and then in Germany, where he spent the next two years.

[2] The company was the first to receive an exemption for the production of alcoholic beer in Iceland during the war, when it produced the Polar Ale for the British occupation forces.

Sigurður Sveinsson, an employee of Ölgerðin created a recipe that was immediately appreciated by locals and has since then surpassed all other such drinks.

In 2000, they decided to sell the family's share, and an agreement was reached at the end of the year with Íslandsbanki-FBA and the investment company Gilding.