Egill Skallagrímsson Brewery

Egill Skallagrímsson Brewery, known in Icelandic as Ölgerðin Egill Skallagrímsson and commonly shortened to Ölgerðin, is an Icelandic brewing and beverage company based in Reykjavík. Founded by Tómas Tómasson on 17 April 1913, it is described as Iceland’s oldest beer-producing factory. Its business has expanded from small-scale brewing and malt-extract production into a broader beverage and food-distribution operation that includes beer, soft drinks, and wholesale activities. The company began in modest conditions in two basement rooms at the Þórshamar house in central Reykjavík. Its original brewing equipment had a capacity of only about 65 litres, and bottles were closed manually. During its first year, the company sold approximately 38,000 litres, primarily malt extract and white beer. Egils Pilsner also entered the market during the brewery’s early years. Iceland’s restrictions on alcoholic beer, introduced in the period around 1915, limited the strength of beer that could legally be produced for the domestic market, influencing the company’s early product development. Tómas Tómasson pursued brewing education abroad, studying in Copenhagen and later spending two years in Germany. After returning to Iceland in 1917, he purchased a facility on Njálsgata in Reykjavík. The site became the company’s principal home for much of the twentieth century and developed into a more complete brewing, fermentation, yeast, and bottling complex. The business reached a significant early milestone in 1926, when it sold one million bottles in a single year. Following a visit to Iceland by Denmark’s King Christian X, it was permitted to use the description “royal brewery.” Ölgerðin’s relationship with Iceland’s changing alcohol regime was commercially important. During the Second World War, it received Iceland’s first exemption to produce alcoholic beer, supplying Polar Ale to British occupation forces. From 1951 it produced Polar Beer for the United States military base at Keflavík and later supplied Export Beer, which became known popularly in Iceland as Egils strong beer. After the country’s beer ban was lifted in 1989, Egils Gull became one of the company’s principal beer products. The company also developed a substantial soft-drink business. Production of carbonated beverages began in 1930, and Ölgerðin acquired the Síríus and Kaldá soft-drink factories. Egils Appelsín, an orange-flavoured soft drink introduced in 1955, became especially associated with the company and achieved a strong position in Iceland. Alongside its own brands, Ölgerðin has operated as a wholesaler of food and beverages. Following Tómas Tómasson’s death in 1978, his sons Jóhannes and Tómas Agnar managed the business for nearly a quarter of a century. The family sold its ownership interest in 2000, after which the company went through several ownership and structural changes. Lind ehf., a subsidiary of Danól ehf., acquired Ölgerðin in 2002, and operations were merged with Lind. In 2007, Októ Einarsson and Andri Þór Guðmundsson acquired the company together with Kaupthing Bank. The brewery is reported to produce approximately 45 million litres of beverages annually, including about 10 million litres made in its brewing facilities. Its beer portfolio has also received international recognition: Egils Gull was named the World’s Best Standard Lager at the 2011 World Beer Awards, while Bríó won the German-style Pilsner category at the 2012 World Beer Cup.

Egill Skallagrímsson Brewery was established in Reykjavík on 17 April 1913 by Tómas Tómasson. The company’s first premises were two basement rooms in the Þórshamar house at Templarasund. Production was small: its brewing boiler held approximately 65 litres, packaging was performed manually, and first-year sales were about 38,000 litres. The initial range consisted mainly of malt extract and white beer, with Egils Pilsner appearing during the company’s first years. Tómas travelled to Copenhagen in 1915 to study brewing at Bryggeriet Stjernen and subsequently spent two years in Germany. On his return in 1917, he acquired a building on Njálsgata in Reykjavík. The site became the brewery’s long-term centre and was gradually developed into a brewing, fermentation, yeast, and bottling facility. By 1926, Ölgerðin was selling one million bottles annually. The company was also granted permission to describe itself as a royal brewery after Denmark’s King Christian X visited Iceland. The history of the brewery was shaped by Icelandic alcohol regulation. When restrictions on strong beer were introduced around 1915, the company’s domestic products had to comply with the applicable strength limits. During the Second World War, however, Ölgerðin received an exemption to make alcoholic beer for British occupation forces, producing Polar Ale. From 1951 it supplied Polar Beer to the United States military base at Keflavík and later produced Export Beer, known colloquially as Egils strong beer. Following the end of Iceland’s beer prohibition in 1989, Egils Gull became the company’s principal beer product. Ölgerðin expanded beyond beer in 1930, when it began making soda drinks. It later acquired the Síríus and Kaldá soft-drink factories. The launch of Egils Appelsín in 1955 was particularly important. The orange soft drink was developed by company employee Sigurður Sveinsson and became one of the most recognizable products associated with the Icelandic beverage market. The business was incorporated as a corporation in 1932 and merged with Ölgerðin Þór hf., a separate brewery that had operated for two years and had built a facility at Rauðarárstígur. The Þór brewery was closed as part of the merger. In the decades that followed, the company continued operating from its Reykjavík base and developed both manufacturing and wholesale activities. After Tómas Tómasson died in 1978, his sons Jóhannes and Tómas Agnar ran the family business for almost 25 years. In 2000, they agreed to sell the family’s interest to Íslandsbanki-FBA and the investment company Gilding. A further ownership change took place in 2002, when Lind ehf., a subsidiary of Danól ehf., acquired Ölgerðin. The operations of Lind and Ölgerðin were combined, expanding the availability of the company’s products. In 2007, Októ Einarsson and Andri Þór Guðmundsson acquired Ölgerðin together with Kaupthing Bank. The bank later sold its shares to several bank executives. The company is described as both a brewery and a wholesaler of food and beverages. It produces approximately 45 million litres of beverages per year, of which around 10 million litres are brewed in the beer-production facilities. Its international recognition includes Egils Gull’s 2011 World Beer Awards prize for World’s Best Standard Lager and Bríó’s 2012 World Beer Cup award for best German-style Pilsner.

1. 2012Bríó wins World Beer Cup category

   Bríó won the best German-style Pilsner category at the World Beer Cup.

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2. 2011Egils Gull receives international lager award

   Egils Gull was named the World’s Best Standard Lager at the World Beer Awards.

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3. 2007Ownership changes again

   Októ Einarsson and Andri Þór Guðmundsson acquired Ölgerðin together with Kaupthing Bank.

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4. 2002Lind acquires Ölgerðin

   Lind ehf., a Danól subsidiary, acquired the brewery and combined its operations with Lind.

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5. 1989Icelandic beer prohibition ends

   After the lifting of the beer ban, Egils Gull became the brewery’s main beer product.

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6. 1955Egils Appelsín introduced

   Ölgerðin launched its orange soft drink, which became a prominent Icelandic beverage brand.

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7. 1930Soft-drink production begins

   The company entered carbonated soft drinks and later acquired the Síríus and Kaldá soda factories.

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8. 1926Annual sales reach one million bottles

   Ölgerðin sold approximately one million bottles during the year and received permission to use the description “royal brewery” after a visit by King Christian X.

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9. 1917Permanent Reykjavík site acquired

   After returning to Iceland, Tómas acquired the Njálsgata property that became the brewery’s principal twentieth-century location.

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10. 1915Founder begins formal brewing studies

    Tómas Tómasson travelled to Copenhagen and later Germany to study brewing.

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11. 1913Brewery founded in Reykjavík

    Tómas Tómasson established Ölgerðin Egill Skallagrímsson on 17 April in a small basement facility at Templarasund.

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A long-established Icelandic brewery and beverage company combining domestic beer production, widely recognized soft-drink brands, and food and beverage distribution.

• Egils GullBeer

  A flagship beer associated with the brewery’s post-1989 domestic portfolio. Egils Gull became the company’s main beer product after Iceland’s prohibition on beer ended and later received the World’s Best Standard Lager award at the 2011 World Beer Awards.

• Egils AppelsínSoft drink1955

  An orange-flavoured carbonated soft drink introduced in 1955. Developed by Ölgerðin employee Sigurður Sveinsson, it became one of the company’s best-known products and a prominent orange soda in Iceland.

• Egils PilsnerBeer1916

  One of Ölgerðin’s early beer products. Production began during the brewery’s first years, although the date printed on bottles historically did not always match the earlier production chronology.

• BríóBeer

  A beer that received the award for best German-style Pilsner at the 2012 World Beer Cup.

• Polar AleBeer

  A beer produced under a wartime exemption for British occupation forces in Iceland during the Second World War.

• Polar BeerBeer1951

  A beer produced from 1951 for the United States military base at Keflavík.

• Export BeerBeer

  A later beer produced after Polar Beer for the military market and known among Iceland’s general population as Egils strong beer.

• 2007Ölgerðin acquired by new investor groupM&A

  The company changed hands again after its integration with Lind.

  What changed. Októ Einarsson and Andri Þór Guðmundsson acquired the company together with Kaupthing Bank.

  Aftermath. Kaupthing later sold its shares to several bank executives; the available reference does not identify the subsequent ownership structure in detail.

  Source
• 2002Lind acquires ÖlgerðinM&A

  Ölgerðin underwent a further ownership change after the family sale.

  What changed. Lind ehf., a subsidiary of Danól ehf., purchased Ölgerðin and merged the operations with Lind.

  Aftermath. The merger substantially increased the availability of Ölgerðin products.

  Source
• 2000Family ownership sale agreedM&A

  After nearly a quarter-century of management by Jóhannes and Tómas Agnar Tómasson, the owning family decided to sell its interest.

  What changed. An agreement was reached with Íslandsbanki-FBA and the investment company Gilding.

  Aftermath. The transaction began a sequence of ownership changes that culminated in later acquisition by Lind and another change in 2007.

  Source

• 2012Bríó wins German-style Pilsner category

  The brewery’s Bríó beer won the German-style Pilsner category at the World Beer Cup.

  Other
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• 2011Egils Gull wins World’s Best Standard Lager

  Egils Gull received the World’s Best Standard Lager award at the World Beer Awards.

  Other
  Source

1. Egill Skallagrímsson Brewery
2. Iceland feature referencing Ölgerðin