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A brewery Tour of Iceland, 30 Years After the End of the Beer Ban

From horseback riding to cave diving, puffin watching to hot spring soaking, Iceland has turned itself into a popular vacation destination. Until fairly recently however, beer tourists didn’t have much to entice them to this island nation in the North Atlantic. In fact, 2019 marks only 30 years since Iceland legalized the sale and consumption of beer with over 2.25% alcohol, ending nearly eight decades of a curious and narrowly defined type of prohibition. Things have changed considerably however, particularly in the last few years. 

The first Icelandic craft brewery, Bruggsmiðjan, which produces the popular Kaldi, didn’t open until 2006, and as recently as 2015 there were only seven small breweries nationwide. Today, nearly 30 beer companies dot the countryside, with the highest concentration in greater Reykjavík. There’s trendy KEX Brewing in the capital city, which just opened its second location in Portland, Oregon; Ölverk Pizza and Brewery in the South, where the brewhouse is powered by geothermal energy; Brugghús Steðja, which gained publicity by making beers with unusual ingredients including smoked whale testicles; and Lady Brewery, one of the newer brands in Iceland, started by two young women in a home kitchen.

Ölverk Pizza and Brewery in Hveragerði.

“The culture has changed so fast,” says Valgeir Valgeirsson, head brewer at RVK Brewing Company in central Reykjavík. “[Craft beer] is quite a new concept. We’re just trying to build it up.” 

Ten taps greet visitors to RVK, along with a British beer engine, traditionally used to serve cask ales. Here, in an unassuming taproom overlooking the brewery’s stainless steel fermentation tanks, those with adventurous palates can try everything from a juicy, easy-drinking pale ale with notes of tropical fruit, to a boldly flavored, high-alcohol stout made with coffee and coconut. Creativity is king in this new era of brewing, with the sky as the limit. Valgeir and a number of other brewers around the country have even made sour beers by incorporating skyr, an Icelandic cultured dairy product, into their recipes.  

Meanwhile, more than 230 miles (370 km) away in the small but scenic fishing village of Siglufjörður, Marteinn Haraldsson is the proud owner of the country’s northernmost brewery, Segull 67. Marteinn, a computer scientist who grew up in town but lives in Akureyri, learned the basics one homebrew recipe at a time, but now produces much larger batches in a former fish-freezing factory a short distance from the popular Herring Era Museum. An amber lager simply called Original and Sigló, an India pale ale, sell best, but Marteinn also makes a Belgian-style wheat beer with coriander and lime peel and a pineapple summer ale—not exactly options you would have had in Iceland as recently as a few years ago.

Segull 67’s Sólstingur, brewed with pineapple.

For all of the tourists that arrive in Siglufjörður via cruise ship during the summer months, Marteinn talks about the obstacles to being  a little business in a remote town of 1,200. “Most of our challenges are getting people to know about us,” he says. “We just try to take it one day at a time.”

East of Reykjavík, in the town of Hveragerði, Ölverk Pizza and Brewery has successfully gained attention since opening its doors in 2017, by combining complementary passions: wood-fired pizza, and craft brewing. General manager Laufey Sif Lárusdóttir and her partner head brewer Elvar Þrastarson don’t currently can or bottle any of the beers they make, preferring to serve them on premise by the glass, pitcher, or tasting flight. Working on a small system enables Elvar to keep the draft list varied and interesting, tempting taste buds with a mild, malty, and food-friendly Altbier alongside a hazy, hoppy, party-in-a-glass imperial IPA like Disco Juice. The couple also typically devotes two of their eight taps to other small Icelandic breweries they admire, like Ölvisholt in Selfoss or The Brothers Brewery on Heimaey in the Vestmannaeyjar archipelago.

Cheese-stuffed breadsticks at Ölverk.

“It’s really small and friendly,” says Laufey  of the young Icelandic beer scene. “For other industries it’s really weird. But if someone else opened up a brewery here I would say ‘Okay,  I will be better.’” Ólafur Ágústsson, one of the partners behind KEX Brewing, echoes this sense of camaraderie, and explains how a desire to build and promote interest in craft brewing motivated the company to begin hosting an annual Icelandic Beer Festival at KEX’s four-story space in downtown Reykjavík eight years ago. Last year more than a dozen Icelandic brewers poured their ales and lagers alongside examples from the US and elsewhere in Europe. 

“We’re not brewers at all,” he says. “I’m a chef. We’re just people who like good beer. We wanted to make the scene better. That’s what’s important right now—helping everybody and trying to grow the market.”

Something’s Brewing, All Around Iceland

1. KEX Brewing Hosts of the popular annual Icelandic Beer Festival.

2. RVK Brewing Company Fruity sours share space with easy- drinking lagers and hazy, hoppy IPAs.

3. Brugghús Steðja Sleep on the farm in an insulated cabin at this rural brewery. 

4. Dokkan Brugghús The first brewery in the Westfjords, and possibly the most remote in Iceland. 

5. Segull 67 Brewery Fresh beer, fishing history, and views of Siglufjörður.

6. Bruggsmiðjan Kaldi Brewery Soak in a beer spa at the country’s oldest craft brewery. 

7. Húsavík Öl Expect creative saisons made with birch, rhubarb, juniper, or mint. 

8. Beljandi Brugghús Approachable beers and a rustic vibe inside a former slaughterhouse. 

9. Smiðjan Brugghús Try the baby back ribs cooked in Icelandic stout. 

10. The Brothers Brewery Watch for puffins on the ferry ride to this island brewery. 

11. Ölvisholt Brewery Don’t miss the chance to try Lava, a smoked imperial stout. 

12. Ölverk Pizza and Brewery Pair a tasty ale with the surprisingly delicious banana pizza.

There are many more breweries in Iceland, particularly in the greater Reykjavík area. For a complete map, check out the Independent Craft Brewers of Iceland’s Facebook page.

Ölvisholt is on an old dairy farm near Selfoss.

Air New Zealand Entices Walmart Boss Home to Lead Airline

Greg Foran, president and CEO of Walmart U.S., smiles after speaking about the company’s Black Friday plans at a Walmart store in Secaucus, New Jersey

(Reuters) – Air New Zealand Ltd <ANZLY> named Walmart U.S. boss Greg Foran as its new chief executive on Friday, bringing him back home at a time the airline is trying to control costs in a lower-growth environment.

New Zealand-born Foran is credited with turning around Walmart Inc’s <WMT.N> U.S. business as its president and CEO since 2014, with the unit reporting 20 quarters of comparable sales growth under his leadership.

Air New Zealand Chairman Therese Walsh said the carrier was “thrilled to have attracted a world class Kiwi back home.”

“Greg has an impeccable track record in delivering strong commercial performance, outstanding customer focus and in building teams that can take a business to the next level,” Walsh said in a statement.

Grant Williamson, investment adviser at Hamilton Hindin Greene in Christchurch, said snagging Foran was a coup for the carrier.

“In the short term, it’s not going to have a major impact on earnings, there’s bigger things moving in the background like oil prices and global growth,” Williamson said. Air New Zealand shares were marginally higher at NZ$2.85 on Friday.

“But in terms of someone to have a steady hand on the wheel for Air New Zealand going forward, I don’t think they could do much better,” Williamson added.

Foran, who boosted Walmart’s sales by focusing on improving existing stores to keep costs and prices low, said he looked forward to building on Air New Zealand’s competitive advantage in customer focus and care.

The airline is known overseas for its quirky safety videos and consistently ranks highly in global airline customer surveys.

Foran will join Air New Zealand in the first quarter of next year, replacing Christopher Luxon who departed last month after seven years in the role. Luxon, a former Unilever executive, had also joined the airline after a career in fast-moving consumer goods.

During Luxon’s tenure, the carrier was recognised globally as an industry leader for its focus on innovation, environmental sustainability and diversity in hiring.

However, it has more recently faced challenges from a higher fuel bill and weak travel demand, leading the national carrier to report a 31% fall in annual profit in August.

Air New Zealand Chief Revenue Officer Cam Wallace, who had been an internal contender for the top job, according to sources with knowledge of the matter, welcomed the appointment on Twitter.

Foran will remain at Walmart until Jan. 31, when he will be replaced by the head of its Sam’s Club warehouse chain, John Furner.

“While we’ve been highly impressed with Mr. Furner’s work at Sam’s Club… he does admittedly have big shoes to fill,” said a note from Jefferies Group LLC <JEF.N>. “We can’t help but expect the market to react negatively to today’s news.”

(Reporting by Jamie Freed in Singapore and Devika Syamnath in Bengaluru, additional reporting by Nandita Bose in Washington; Editing by Sandra Maler and Jane Wardell)

Tesla Cuts 9% of Work Force

(Reuters) – Electric car maker Tesla Inc (TSLA.O) is cutting several thousand jobs across the company as it seeks to reduce costs and become profitable without endangering the critical production ramp-up for its Model 3 sedan.

In an email he said had been sent to staff, billionaire Chief Executive Elon Musk said on Tuesday that the cuts were part of a simplification of Tesla’s management structure promised last month.

“As part of this effort, and the need to reduce costs and become profitable, we have made the difficult decision to let go of approximately 9 percent of our colleagues across the company,” the email read.

“These cuts were almost entirely made from our salaried population and no production associates were included, so this will not affect our ability to reach Model 3 production targets in the coming months.”

Tesla has been trying to hit a 5,000 per week production target of its Model 3 sedans after facing initial production hiccups. Last week, Musk said the carmaker should achieve its target by the end of June.

Shares rose as much as 7 percent and were last up 3.6 percent at $344.18.

The layoffs mean there likely will not be more job cuts in the near-term, said Efraim Levy, analyst at CFRA Research, adding that Tesla will likely raise capital early in 2019.

“I don’t think if Tesla becomes profitable in Q3 and Q4, that will be sustainable because of ramping up of the production. The layoffs may help them to achieve profitability in the near-term but not sustain it.”

Tesla has been burning through cash as it continues to spend on its assembly line and prepares for new investments on projects such as the Model Y crossover and its Gigafactory.

Free cash flow, a key metric of financial health, widened to negative $1 billion in the first quarter from negative $277 million in the fourth quarter, excluding costs of systems for its solar business.

Several Wall Street analysts anticipate a capital raise this year despite Musk’s statements that it will not be necessary due to profitability and positive cash flow in the third or fourth quarters.

Tesla said it began notifying impacted workers on Tuesday and would continue to do so throughout the week. A spokesman said it would reduce overall employment back to around 37,000 – roughly in line with numbers at the end of last year.

Musk also said that Tesla had decided not to renew a residential sales agreement with Home Depot (HD.N), and would focus instead on selling its solar products through its own stores and website. The company will seek to re-employ most Tesla employees at Home Depot stores at its own locations.

Musk told employees in May that the company was undergoing a “thorough reorganization” as it contends with production problems, senior staff departures and recent crashes involving its electric cars.

At the start of April, the company’s shares had fallen by around 35 percent from a peak hit last September but signs that it is on course to meet an output target of Model 3 cars have wiped out almost all of this year’s losses.

(Reporting by Laharee Chatterjee and Vibhuti Sharma in Bengaluru; Editing by Saumyadeb Chakrabarty, Patrick Graham and Nick Zieminski)

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