Prohibition in Iceland went into effect in 1915 and lasted, to some extent, until 1 March 1989 (since celebrated as "Beer Day"). The ban had originally prohibited all alcohol, but from 1922 legalized wine and in 1935 legalized all alcoholic beverages except beer with more than 2.25% alcohol content.[1][2] As in many other states with prohibition, "illegal brewing and smuggling of alcoholic beverages were widespread during the ban."[1]
According to one study, "Opposition to beer in Iceland was found to be strongest among Alþingi members from rural areas and traditional socialist parties. The most influential argument against beer alone was that adolescents are particularly susceptible to the temptation to drink beer. Opponents of the beer ban in Alþingi pointed out the peculiar nature of the law allowing hard liquor but prohibiting the weaker beverage. More liberal alcohol policies have increased the total amount of alcohol consumed in Iceland in recent years."[1]