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ICELAND AND ALCOHOL: HOW THE COUNTRY TOOK ON DRINKING AND SMOKING

When you arrive in Iceland and walk into a supermarket for the first time, something may immediately catch your attention. You won't find cigarette packs displayed behind the checkout counters, as people in many countries were accustomed to seeing for decades, and you can search the shelves in vain for a bottle of wine or a regular beer. If you want to buy tobacco products, you have to ask the cashier for them. And if you feel like enjoying a glass of wine or a stronger beer, you'll need to visit Vínbúðin, Iceland's state-owned alcohol retailer.



The Icelandic state-owned alcohol retailer Vínbúðin.
The Icelandic state-owned alcohol retailer Vínbúðin.

At first glance, these rules may seem unnecessarily strict. In reality, they are the result of more than a century of history, during which Iceland first attempted to solve the problem of alcohol through total prohibition and later through a carefully designed combination of prevention, high excise taxes, restricted availability, and advertising bans.

Today, Iceland is widely regarded as one of the world's most successful examples of reducing smoking and excessive alcohol consumption among young people.


When Iceland Banned Almost All Alcohol

At the beginning of the 20th century, the temperance movement gained strong momentum in Iceland. Alcohol was increasingly associated with poverty, crime, and domestic violence, and many people believed that complete prohibition was the only solution.


Page from the 1909 issue of Breiðablik
Page from the 1909 issue of Breiðablik. Source: Timarit.is

In 1908, Icelanders voted in a national referendum in favour of prohibition, which eventually came into force on 1 January 1915. Nearly all alcoholic beverages were banned, making Iceland one of only a handful of countries that attempted to tackle alcohol through such a sweeping prohibition.

The ban, however, did not remain intact for long. Ironically, it was not Icelanders themselves who first challenged it—it was Spanish wine merchants.


Breiðablik (1909): "Important news has arrived from our homeland. The Althing has passed a law prohibiting the import of alcohol (Áfengisbann). The law is expected to take effect at the beginning of 1912. A transitional period has been granted to those whose livelihood depends on the alcohol trade so they can close their businesses and find other employment."


Interestingly, the newspaper refers to 1912. This reflected the original legislative proposal. As history unfolded, however, the implementation of full prohibition was delayed until 1 January 1915.


How Spanish Wine Saved Icelandic Fish

During the 1920s, Spain was one of the largest importers of Icelandic fish. The Spanish government made it clear that if Iceland refused to import Spanish wine, Spain might stop buying Icelandic seafood. For the island nation's economy, this represented a serious threat.

Faced with the prospect of losing one of its most important export markets, Iceland backed down. In 1922, the ban on wine imports was lifted. The decision had little to do with changing public opinion or admitting that prohibition had failed. It was driven by trade and economic necessity.

Thirteen years later, in 1935, the ban on spirits was also repealed.

One notable exception, however, remained.

Why Beer Remained Illegal Until 1989

While whisky, vodka, and cognac were once again legal, ordinary beer remained banned for another 54 years.

Today, that decision may sound almost absurd, but policymakers at the time believed beer posed a unique risk. Because it was cheaper and more accessible than spirits, they feared it would encourage everyday drinking far more effectively.

The result was paradoxical. As late as 1988, anyone could legally buy a bottle of whisky, but not an ordinary pint of beer.

Naturally, people found a workaround. Bars served low-alcohol beer and simply added a shot of vodka or the traditional Icelandic spirit Brennivín.


The famous photograph by Ragnar Axelsson published in Morgunblaðið. Icelanders celebrating Beer Day (Bjórdagurinn) on 1 March 1989.
The famous photograph by Ragnar Axelsson published in Morgunblaðið. Icelanders celebrating Beer Day (Bjórdagurinn) on 1 March 1989.

Vznikl nápoj, který chutí připomínal běžné pivo a přitom splňoval tehdejší zákony.

Teprve 1. března 1989 islandský parlament zákaz piva definitivně zrušil. Hospody v Reykjavíku tehdy čepovaly první legální půllitry už krátce po půlnoci a tento den se dodnes připomíná jako Beer Day (Bjórdagurinn).






Why Iceland Succeeded Where America Failed

When people hear the word prohibition, most immediately think of the United States. Between 1920 and 1933, America banned the production and sale of alcohol in an attempt to reduce crime, poverty, and public health problems. Instead, the opposite happened. A vast black market emerged, organised crime flourished under figures such as Al Capone, and illegal bars known as speakeasies spread across the country. Eventually, the U.S. government acknowledged that total prohibition had failed to achieve its goals.

Iceland's experience was remarkably similar. Here too, prohibition failed to eliminate alcohol from society, and it gradually became clear that a long-term solution lay not in banning alcohol altogether, but in changing the environment in which people grow up and make their choices. Rather than trying to eradicate alcohol completely, Iceland shifted its focus to prevention, advertising restrictions, limited availability, and encouraging healthy ways of spending free time.

That is the key difference. American prohibition attempted to solve the problem with a single law. Iceland realised that lasting change only comes when society itself changes.


The First Signs of a New Approach

Long before the now-famous Icelandic Prevention Model was developed, attitudes toward alcohol prevention had already begun to change in Iceland.

An interview published in 1971 with Vilhjálmur Einarsson, organiser of the family festival Húsafellsmót, offers a fascinating glimpse into this shift. Explaining why alcohol was completely banned at the event, he said:


Issue of Vísir, 23 June 1971
Issue of Vísir, 23 June 1971. Source: Timarit.is.
"It is naïve for parents to believe that simply banning alcohol at an event guarantees that their children will not gain access to it. Families should spend their leisure time together—that is where our greatest emphasis lies."



Even today, those words sound remarkably modern. More than twenty years before the Icelandic Prevention Model was introduced, they highlighted an important truth: bans alone are not enough. Parents and shared family time play a crucial role. Those very principles later became the foundation of one of the world's most successful substance abuse prevention programmes.


Iceland Changed Its Strategy

The real turning point did not come with the legalisation of beer. It came during the 1990s, when surveys revealed that Icelandic teenagers ranked among the heaviest drinkers and smokers in Europe.

Instead of introducing even stricter prohibitions, the government chose a completely different path. It invested heavily in sports clubs, music schools, youth organisations, and extracurricular activities. Parents were encouraged to spend more time with their children, while schools regularly monitored young people's behaviour and wellbeing.

This comprehensive strategy eventually became known as the Icelandic Prevention Model, inspiring dozens of countries around the world.

At the same time, regulations governing the sale of alcohol and tobacco became even stricter.

What Surprises Tourists?

The first surprise often comes when buying cigarettes. In Icelandic supermarkets, tobacco products are not displayed anywhere, nor will you see advertisements promoting them. If you want a packet of cigarettes, you must ask the cashier directly. The goal is not to punish smokers but to discourage impulse purchases and reduce the influence of advertising, particularly on young people.

Alcohol is subject to similarly strict rules. You will hardly see any alcohol advertising in Iceland. Interestingly, however, many breweries promote their alcohol-free beers, which often use the same logos, colours, and branding as their alcoholic counterparts. Officially, the advertisements promote non-alcoholic products, while simultaneously maintaining public awareness of the brand itself.

Another surprise is the way alcohol is sold. Most supermarkets are allowed to sell only beverages containing up to 2.25% alcohol. Regular beer, wine, and spirits are sold primarily through Vínbúðin, the state-owned alcohol retailer, whose stores operate with limited opening hours. Their purpose is not to maximise profits but to regulate alcohol availability.


"Low prices every day," reads the Icelandic supermarket sign. Yet neither alcohol nor cigarettes are on display.
"Low prices every day," reads the Icelandic supermarket sign. Yet neither alcohol nor cigarettes are on display.

How Much Do Beer and Cigarettes Cost?

Iceland is one of Europe's most expensive countries, and high excise taxes are one of the reasons why alcohol and tobacco cost considerably more than in many other European nations.

At the time of writing, a packet of cigarettes costs approximately 1,500–1,600 ISK (around €10–11 / US$12–13).

A half-litre beer purchased at Vínbúðin typically costs 500–700 ISK (around €3.50–5 / US$4–5), while the same beer in a restaurant or bar usually costs between 1,400 and 1,900 ISK (approximately €10–13 / US$11–15).

For this reason, many visitors buy alcohol at the duty-free shop upon arrival at Keflavík International Airport, where prices are significantly lower than elsewhere in Iceland.


Explore Iceland through the epic documentary Island in the North



Did Iceland Win Its Battle?

Alcohol and cigarettes have certainly not disappeared from Iceland. What has changed is the way society approaches them. Aggressive marketing has been replaced by strict advertising regulations. Easy availability has given way to controlled sales. And instead of relying solely on prohibition, Iceland has invested in long-term cooperation between families, schools, communities, and youth organisations.

This combination of measures is widely regarded as one of the main reasons why Iceland transformed itself, within just a few decades, from a country with high levels of youth drinking into one of Europe's leading examples of successful addiction prevention.


Could Iceland Inspire Europe and the Rest of the World?

The question of how to reduce harmful alcohol consumption is being debated in many countries across Europe and beyond. Some governments are considering tighter advertising rules, higher taxes, or restrictions on alcohol sales, while others are placing greater emphasis on prevention and education.

Iceland's experience suggests that lasting change requires far more than a single law or higher prices. Its success has been built on a long-term strategy that combines advertising restrictions, controlled alcohol availability, investment in sports and leisure activities, and the active involvement of parents, schools, and local communities.

Whether this model can be successfully adapted elsewhere remains an open question. Every country has its own cultural traditions and relationship with alcohol. Yet Iceland demonstrates that meaningful change is possible when prevention becomes a long-term national priority rather than a short-term political initiative.


Creator of Iceland in the North Roman Pech

About the Author

Iceland has fascinated me for many years. Over the course of numerous journeys across the island, I have driven tens of thousands of kilometers, experienced storms that changed travel plans within minutes, and witnessed days when choosing the right route meant discovering places that most visitors never see. I documented many of these experiences in my documentary film Island in the North.

Through this website, I share practical travel advice, up-to-date information, and firsthand experiences from the field to help others explore Iceland more safely and gain a deeper understanding of its unique landscapes and ever-changing nature.



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