Carmel Winery

Carmel’s grower network encompasses 108 families and approximately 3,500 acres of vineyards, extending from the Galilee and Golan Heights in the north to the Negev in the south.[3] Its wines span entry-level and premium price categories, linking a large agricultural supply network with products intended for different parts of the wine market.[3] Historically associated with Rishon LeZion and Zichron Ya’akov, the company has operated under Ottoman rule, the British Mandate, and the State of Israel.[1]

The enterprise developed through several related institutions: Rothschild-supported wine cellars, overseas sales companies, and a cooperative of grape growers.[1][2] Carmel’s early commercial importance lay particularly in connecting the produce of Jewish agricultural settlements with consumers abroad.[2] Its later development included premium wines, new production facilities, tourism at historic cellars, and expansion into beverage distribution.[1] In 2022, its merger with Clal Beverages created Carmel Corp., bringing the winery into a publicly traded corporate structure.[1]

The year 1882, conventionally used for Carmel’s beginnings, was the year Rishon LeZion and Zichron Ya’akov were founded and their first experimental vineyards were planted.[1] At Zichron Ya’akov, Romanian immigrants initially attempted to grow wheat, potatoes, and grapes; after the first two crops failed, they concentrated on grapes.[4] Rothschild sent an agronomist to examine the land, and the recommended grape varieties came from southern France.[4] At Rishon LeZion, the failure of the initial wheat crop likewise prompted a change in agricultural direction after Rothschild’s emissaries observed that vines thrived where wheat did not.[5]

Rothschild’s investment gave the wine industry substantial agricultural and technical resources.[6] At Rishon LeZion, a million native vines were planted and later grafted with French varieties identified as sauternes, malaga, and muscatel.[2] American vine stocks were also imported as protection against phylloxera and grafted with French shoots.[6] French experts helped develop viticulture and the production of wines and cognacs, while modern equipment was installed in a large cellar.[6] This development extended over ten years and cost Rothschild millions of francs.[6]

The Rishon LeZion winery’s construction began in 1887 and was completed in 1889, at a reported cost of six million francs—an unprecedented expenditure compared with other regional projects at the time.[5] Its cellar capacity reached 50,000 hectoliters, and smaller cellars were established at Zichron Ya’akov and Rosh Pinnah.[2] Zichron Ya’akov’s winery dates to 1892; there, phylloxera damaged the vines before resistant American-grafted seedlings enabled the wine industry to flourish.[7] Refrigeration equipment at the Rishon LeZion and Zichron Ya’akov cellars was intended to slow fermentation and improve wine quality.[8]

The first Rishon LeZion harvest, in August 1890, exposed the difficulty of making wine in the summer heat.[4] Fermentation temperatures rose too high, and the wine turned to vinegar despite an ice machine imported from France; the next two harvests also failed.[4] Rothschild subsequently financed six underground cellars at each of the two wineries to improve temperature control.[4] The underground construction program ran from 1893 to 1896 and used the expertise of a Templar engineer named Schumacher.[9]

Marketing became as important as cultivation and cellar construction.[2] By the time production across the wine-growing colonies reached as much as 1.5 million gallons annually, foreign sales arrangements were inadequate and the cellars filled to overflowing.[2] Wine sold for whatever price managers could obtain, and the proceeds could not support the growers.[2] Rothschild continued purchasing produce at a guaranteed price of $2.50 per hectoliter.[2]

An initiative to develop overseas sales emerged in 1895, when two men from Rehovot approached Rothschild about marketing the wine abroad.[4] The first branch opened in Warsaw, followed by branches in London, Odesa, Vienna, and New York.[4] Eliyahu Ze’ev Levin-Epstein and Ze’ev Gluskin founded the Carmel Company in 1896 to market wines from Palestine overseas.[10] Levin-Epstein, also a founder of Rehovot, is identified among Carmel Winery’s founders; his surviving archive is small and contains Hebrew, English, and German material.[11] In 1900, he settled in New York as director of Carmel America.[10]

Gluskin, also known as Wolf Gluskin, marketed wines from Palestine in Europe from 1896 to 1906 before settling in Rishon LeZion.[10] He founded the Palestine Vintners Association in 1906 and headed it until 1923.[10] A London branch opened in 1898 under the name Palestine Wine Company and sold the kosher wine Palwin, its name shortened from “Palestine Wine.”[4] Early export activity targeted kosher wine markets in Poland, Britain, and America, while Carmel’s two-spies emblem dates to 1882.[12]

The growing export network distributed almost all the Jewish colonists’ produce received by the Rothschild cellars at Rishon LeZion.[13] Destinations included Russia, Austria, Holland, Switzerland, France, England, and the United States.[13] The 1904 vintage exceeded seven million bottles, including 200,000 sold in Warsaw.[13] Carmel’s international branches eventually included Russia, the United States, Turkey, Egypt, Germany, England, and France.[2]

A major institutional change followed Rothschild’s transfer of his interests in the colonies to the Jewish Colonization Association, or ICA.[2] In 1906, the ICA turned the Rishon LeZion and Zichron Ya’akov cellars over to a growers’ cooperative, replacing an operation that had incurred substantial annual losses under Rothschild.[6] The cooperative, Agudat Hacormim, was registered in French as Société Coopérative Vigneronne des Grandes Caves.[1] David Idelovitch was among its founders and represented it in Alexandria from 1906 to 1924.[14]

The reorganization aimed to replace guaranteed purchases with a functioning commercial market.[2] A syndicate of 352 growers represented Rishon LeZion, Rehovot, Zichron Ya’akov, Katra, Petah Tikvah, and Wadi al-Hanin.[2] It leased the cellars for a nominal rent, undertook to pay for stored wine and outstanding claims in installments, and received a $320,000 reserve fund intended to cover deficits for five years.[2] Carmel served as the cooperative society’s selling agent.[2]

Reducing surplus production required clearing approximately 30 percent of vineyard acreage in the wine-growing colonies, and output fell by nearly three-fifths from its former maximum.[2] Some former vineyard land was planted with almonds, olives, and citrus, with compensation provided to farmers by Rothschild.[8] The syndicate subsequently obtained $1.60 per hectoliter for growers, supplemented by 75 cents from the reserve fund.[2] Production recovered to nearly 1.1 million gallons in 1911–1912.[2]

The 1911 output was sold, including more than 350,000 gallons in Egypt, 300,000 elsewhere in the Orient, and approximately 400,000 in Switzerland, France, Russia, Germany, America, and Galicia.[2] That year, the cooperative paid Rothschild $90,000 as a first installment on its debt, and the vintage handled in 1912–1913 was valued at no less than $200,000.[2] A separate contemporary account records a payment of 450,000 francs toward the indebtedness in 1911 and improved net results for growers under cooperative management.[6]

In 1957, James Rothschild transferred ownership to the Wine Growers Association.[15] The cooperative also occupied a powerful position within the domestic industry: winemakers at one stage had to work through Carmel Mizrachi.[16] Prime Minister David Ben-Gurion intervened on behalf of Eliaz Winery owner Joseph Zeltzer, after which a law allowed Zeltzer to purchase a small quantity of grapes for independent production.[16] Zeltzer honored Ben-Gurion with a “Hard Nut Liqueur” line, referring to his reputation as a hard nut to crack.[16]

Carmel’s movement toward higher-quality modern wines included the launch of a Cabernet Sauvignon in 1976, identified as Israel’s first wine of that variety.[15] Its 1976 and 1979 Special Reserve Cabernet Sauvignon wines were among the early modern Israeli wines of international standing.[15] During the early 2000s, the company hired Californian consultant Peter Stern, recruited younger internationally trained winemakers, refurbished wineries, and developed Upper Galilee vineyards.[17] It also built boutique facilities in Zichron Ya’akov and Tel Arad and a grape-receiving station in the Dalton Industrial Area.[17]

The company’s naming evolved alongside these changes: Carmel Oriental became Carmel Mizrahi in Hebrew, and the name in use changed to Carmel Winery in 2004.[1] The Kayoumi winery in the Upper Galilee was established that year to shorten transport times for premium grapes from the Galilee and Golan Heights.[15] Rishon LeZion received its last harvest in 2010, and wine production moved to Zichron Ya’akov by the following year.[1] The former winery nevertheless continued bottling wine made at Zichron Ya’akov, a function still reported in 2014.[18]

In 2013, an international investor group assembled by Kedma acquired 50.01 percent of Carmel at a company valuation of NIS 130 million.[19] Investors included the Jesselson family, the Schottenstein group, Leo Noé, Pierre Besnainou, and Ben-Shoshan; growers and the Jewish Agency retained the remaining shares.[19] Kedma’s participants in assembling the group were Gilad Shavit, Uri Einan, and Gilad Halevy.[19] Nadav Arens-Arad became chief executive in 2018, while Yiftach Peretz became head winemaker.[17]

In 2022, Carmel agreed to merge into publicly traded Clal Industries and Beverages through a share exchange, producing the listed Carmel Corp.[20] The Clal beverages business held a 30 percent stake in soft-drink producer Jafora-Tabori.[20] Carmel also expanded into beverage distribution.[1] Production infrastructure meanwhile shifted northward: an Alon Tavor facility opened in 2016 as a production and logistics site covering 35 dunams.[15] By 2025, the Alon Tavor operation consolidated winemaking, storage, bottling, and logistics at one site for the first time in Carmel’s history.[17]

The consolidated Alon Tavor facility was developed with an investment of NIS 160 million and expertise from Spanish specialists ASPA.[17] An August 2026 sponsored account described the complex as approximately 50 dunams, with capacity to receive up to 22,000 tons of grapes annually.[21] At that time, Carmel produced about 20 million bottles of wine a year across 13 brands and series, and held an approximately 31.5 percent volume share of the market as of May 2026.[21] Zichron Ya’akov was designated to continue as a boutique and premium winery and a tourism and heritage destination.[21]

Carmel’s contemporary range includes Selected, Private Collection, and Buzz, alongside King David kiddush wines and Carmel Tirosh grape juice.[17] The Carmel Signature portfolio extends from 4 Vats to Single Vineyard wines and Limited Edition.[17] Its product pages group Carmel wines into table wines, sweet wines used for kiddush, and grape juice; the company says its original grape juice predates the establishment of the State of Israel.[22]

Earlier product descriptions illustrate the breadth of Carmel’s range at different stages rather than a single permanent inventory.[23] A snapshot from its 115th year listed annual production above 13 million bottles and the Private Collection, Selected, and Vineyard ranges.[23] Private Collection included Cabernet Sauvignon, Merlot, Sauvignon Blanc, Chardonnay, and Emerald Riesling; Selected added Petit Sirah, Chenin Blanc, and French Colombard.[23] Vineyard included Dry Muscat, while other offerings included Sparkling Chardonnay, a Muscat-based dessert wine, and red and white Hiluleem wines.[23]

A 2021 production snapshot placed Carmel’s annual output at almost 18 million bottles.[24] Earlier in its history, inadequate local demand and phylloxera damage had pushed the operation toward bulk wines and sweet ritual wines made from cheaper grapes, despite Rothschild’s original ambition to produce high-quality wine from imported Bordeaux cuttings.[24] By 2005, the company’s offerings extended beyond table wines to grape juice, alcoholic beverages, and olive oils.[12]

The later quality-focused portfolio included Limited Edition and Mediterranean, together with Appellation and Single Vineyard labels.[17] Carmel helped pioneer single-vineyard wines and promoted Mediterranean varieties within Israeli winemaking.[17] Its Kayoumi Vineyard Shiraz 2006 won an international trophy at the Decanter World Wine Awards; the award was received in 2010 in the category for red wines made from Rhône varieties.[15] Plans for Zichron Ya’akov include a boutique facility dedicated to Single Vineyard wines and flagship blends.[17]

Exports remain part of the company’s business, with the United States, England, and France among its principal overseas markets.[25] Its distribution activities also include the boutique wineries Yatir and Vitkin.[26] Yatir was founded near Tel Arad in 2000 and released its first wines in 2004; its vineyards occupy slopes in Yatir Forest at elevations reaching 900 meters.[26]

The cooperative legacy remains visible in the company’s legal documentation: the website’s owners include the Cooperative Association of the Rishon LeZion and Zichron Yaakov Wineries Ltd., association number 57-000031-5, together with other Carmel group companies.[27] The company’s stated aims include developing Israeli wine culture, while its range remains positioned from accessible prices through premium bottlings.[25]

Rishon LeZion’s winery became the country’s largest place of employment in the years after its establishment and an important setting for the Yishuv’s workers’ movement.[5] A strike took place there in 1901, workers’ unions formed in connection with the winery, and many early aliyah settlers received agricultural training there.[5] David Ben-Gurion, later Israel’s first prime minister, led the winery workers’ union.[28] A local legend also associates him with a wager in which he supposedly stomped grapes for three days and nights to outlast his friends.[5]

Carmel’s commercial network helped give Jewish agricultural production an international market at a time when the viability of the wine-growing settlements depended on selling substantial surpluses.[2] Its overseas branches and cooperative sales operations connected growers with markets across Europe, America, Egypt, and the wider region.[2] The transition from Rothschild’s financial support to cooperative management linked agricultural settlement with an effort to establish a sustainable commercial enterprise.[2][6]

The historic cellars also became places where visitors encountered the relationship between Jewish settlement and winemaking.[29] Carmel’s Wine Culture Center in Zichron Ya’akov offers tours, workshops, and tastings covering settlement history, production processes, and traditional and innovative technologies.[29] Tours include renovated concrete vats and oak barrels, with guided tastings around the barrels in the historic cellar.[29]

An earlier phase of tourism development involved a $1.2 million investment in reconstructing old cellars, creating traditional-style tasting rooms, training guides, and remodeling Rothschild-era buildings.[30] At the time described, more than 100,000 tourists visited the Rishon LeZion winery annually.[30] Tours at both Rishon LeZion and Zichron Ya’akov included cellars where wines and brandies aged in oak casks and concluded with guided tastings.[30] The continuing visitor center at Zichron Ya’akov preserves the historic winery building as production arrangements change.[17]

Carmel’s quality development has also been recognized in competitions beyond its Kayoumi Shiraz award.[31] At the 2021 Eshkol HaZahav competition, its wines received nine medals, including three golds, with eight Carmel Signature wines among the winners.[31] It received four medals at the 2021 Best Value competition, where a 16-person panel blind-tasted 167 Israeli wines priced between NIS 25 and NIS 79.[31] These awards accompanied a portfolio encompassing both premium wines and wines intended for broader everyday consumption.[17][31]

The early industry generated disagreement over both Rothschild’s management and the ICA’s response to surplus production.[2] Guaranteed purchases supported growers but also encouraged dependence; explanations for the resulting difficulties differed over the roles of Rothschild’s commitment and his administrators’ agricultural and business experience.[2] Some experts considered vineyard uprooting an overreaction because they regarded the country as particularly suited to viticulture, whereas economic arguments emphasized limited local consumption, transport costs to Jaffa, taxation, and difficulties securing markets.[2] The shift from guaranteed prices to a commercial basis, including vineyard reductions, was painful and caused friction among some colonists.[2]