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Beer Breweries Boom in Israel, Despite High Taxes and Low Consumption

Craft-beer producers and home brewers hope to foster a domestic beer culture that mirrors Israel’s wine culture

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Aram Dekel pours allspice barley beer at the Abeer HaElla brewery. (All photos Daniella Cheslow)
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With no sea in sight, one of the best counters to the broiling summer heat of the Jerusalem hills is a cold beer. Aram Dekel has perfected that antidote in the form of Touching Blade, an allspice beer with a bracing bite. He serves it in an airy, wood-framed restaurant surrounded by tall trees on the Zafririm moshav south of Beit Shemesh. Old pottery shards from the area prove that people have been crafting beer in the Holy Land for thousands of years. Dekel, with his long gray beard and a collection of fermenting honey, ginger, and banana liqueurs, looks like he could have been among those ancient brewers.

Dekel is part of a growing crop of craft-beer brewers in Israel. Ten years ago, the only domestic beer options in Israel were Goldstar and Maccabee lagers. Now, in the Mateh Yehudah region—the triangle between Jerusalem, the Ella Valley, and the far outskirts of Tel Aviv—nearly every farming community has at least one warehouse filled with beer fermenting in stainless-steel kettles. Inspired by cloudy German wheat beers or bitter American pale ales they tasted while traveling, Israeli brewers are importing sacks of grain and barley and creating local versions of their favorites. The new beers are finding a small but growing audience among discerning Israeli drinkers. But as the brewers try to foster an Israeli beer culture, they face two big hurdles: Israelis drink very little, and a pint of beer here is among the most expensive in the world.

Ori Saguy, the chairman of the Association of Small Brewers in Israel, says breweries are struggling to build a domestic beer culture despite these obstacles. “Twenty years ago in the States, there was Bud, Miller, Coors, and imports, and today every state has a number of craft breweries and amazing brewpubs,” Saguy said. “This is what I want in Israel—fantastic, fresh, and high-quality beer, and not just imports.”


Dekel, 52, runs a brewery called Abeer HaElla, meaning “Knight of the Ella” in Hebrew while also offering a play on the word “beer” in English. In addition to his allspice beer, he also makes honey-wheat beer and a chili porter, producing up to 200 liters a month in total. He started brewing as a hobby and gradually began to sell; anyone who wants to buy his brew has to drive the windy roads to his shop, where Dekel and his wife Bat Sheva make side dishes like beef chorizo sausage, pungent goat cheeses, and popcorn dusted in thyme and white pepper. He claims his beer is the most expensive in Israel, selling for as much as 37 shekels ($10.29) for a third-of-a-liter bottle—although it’s not as steep for the brewer himself. “Brewing is the best way to get beer for nothing,” Dekel said. “You can always say you’re just checking the beer, not drinking it.”

A 5-minute drive from Dekel, tables are full of young people sipping fresh beer on the balcony of the Srigim brewery, named for the moshav where it’s located. Ofer Ronen, 57, and Ohad Eilon, 51, worked in the Israeli high-tech industry for 30 years, and while they were traveling, they fell in love with beer. Ronen’s job as an electronics engineer, for instance, sent him to Stuttgart for six months: “When I went there, I immediately realized that beer is not a drink,” he said. “It’s a culture.” Later, while working in the United States, Ronen found a bottle of one of the first American craft beers, Pete’s Wicked Ale. Now he sells Ronen’s Wicked Dark Ale, a fruity beer made with roasted barley.

Ofer Ronen of Srigim
At the Srigim brewery, co-owner Ofer Ronen offers classic Bavarian wheat and fruity, surprising brews like Ugly Indian.

Srigim produces about 5,000 liters of beer a month, including four classics—Bavarian wheat, English blonde, Irish red, and a Belgian Tripel—and three more adventurous brews, including “Ugly Indian” IPA, a recipe Ronen cooked up. “When you smell it, you think you’re going to drink exotic sweet juice,” he said. “But when you drink it, you feel a real bitterness. And after that wears off, you taste pink grapefruit, lychee, and passion fruit.”

Although Ronen was inspired by German and American beers, a major difference when it comes to making beer in Israel is price. German supermarkets sell pints for less than a euro, and bars charge two or three euros for a pour. In Israel, the price is doubled or even tripled, reflecting high taxes, a tiny market, and the need to import all the raw ingredients. Tax on beer in Israel doubled in April and is now about $1.20 a liter.

Ronen says he is dealing with the higher taxes by raising his prices and by trying to export to the United States. Last month, he sent his first pallet of beer to a Washington, D.C., event sponsored by the Jewish Federation of Greater Washington, where it sold out.

Shahar Hertz, who sells brewing equipment and specialty beers at his Beer and Beyond store in Tel Aviv, says Israeli beer prices are among the 10 highest in the world, and the tax on beer is among the five highest. Moreover, the market is small: Israelis drink about 14 liters of beer on average, Hertz said—one-tenth of the Czech average, and far below the American average of 78 liters a year. But the brewing community continues to grow. Nationwide, there are about 15 licensed craft brewers. Hertz says there are hundreds of home brewers, and a few dozen of those sell their beer without approval from Israel’s health ministry. Hertz is running a brewing competition over the summer; he expects 100 hobby brewers will enter. He is also leading a summer beer tour to Belgium.

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Beer Breweries Boom in Israel, Despite High Taxes and Low Consumption

Craft-beer producers and home brewers hope to foster a domestic beer culture that mirrors Israel’s wine culture