Carmel Winery
One of Israel’s oldest and largest wineries, with roots in the vineyard enterprise established by Edmond James de Rothschild in 1882.
Last updated August 22, 2026
Overview
Carmel Winery is an Israeli vineyard and wine producer whose origins lie in the agricultural and philanthropic activities of Baron Edmond James de Rothschild during the First Aliyah. French grapevine rootstock was imported in 1882, vineyards were planted near Rishon LeZion, and Rothschild supplied technical and financial assistance to the early settlers. A large cellar was subsequently developed at Rishon LeZion, followed by a second winery at Zikhron Ya'akov on the southern slopes of Mount Carmel. The business became an organized export enterprise in the late nineteenth century. Carmel Wine Co. was formed in 1895 to market wines from the two principal wineries, initially targeting Poland and later Austria, Britain and the United States. Carmel products appeared at international exhibitions, including Berlin in 1896 and Hamburg in 1897, while wines from Rishon LeZion received a gold medal at the 1900 Paris World's Fair. In 1902, Carmel Mizrahi was established to handle distribution across cities of the Ottoman Empire. In 1906, the vineyards and winery management were transferred to a cooperative of winegrowers, the Societé Cooperative Vigneronne des Grandes Caves Richon le Zion and Zikhron Jacob, which became closely associated with the Carmel Mizrahi name in Israel and Carmel internationally. Carmel expanded its overseas network in the early twentieth century, but the First World War and its aftermath disrupted trade. The October Revolution removed important Russian markets, Prohibition damaged sales in the United States, and political and commercial changes reduced business in Egypt and other Middle Eastern markets. Some vineyards were replaced with citrus trees. Production recovered during the Second World War and after the establishment of Israel, although Carmel’s postwar output was for a period heavily concentrated in sweet wines used for religious purposes. The company later participated in the modernization of Israeli wine. In 1971 it presented Cabernet Sauvignon and Sauvignon Blanc varietal wines in the United States, an important step away from an almost exclusive emphasis on sweet sacramental wine. Difficult conditions in the Israeli wine sector during the early 1980s were followed by stronger demand for quality, improved viticulture, new growing regions and updated cellar technology. Carmel renovated facilities, developed new wineries and vineyards, and recruited additional winemaking expertise. Today Carmel produces wine, brandy and grape juice. Its principal facilities are the historic Rishon LeZion Winery and the Zikhron Ya'akov Winery, supplemented by operations associated with Yatir and Ramat Dalton. The company owns or controls extensive vineyards extending from the Galilee and Golan Heights through the coastal plains and Judean Hills to the Negev. It is described in reference material as Israel’s largest winery, a producer with close to half of the domestic wine market, and the world’s largest producer of kosher wine. Its portfolio spans everyday, premium and regional wines, as well as spirits, grape juice and sparkling products, and its wines are exported to more than 40 countries.
History
Carmel Winery’s history is closely connected with the emergence of modern viticulture in the Jewish settlements of late Ottoman Palestine. Early settlers faced unfamiliar soils, limited agricultural experience and a lack of established wine infrastructure. Their representatives sought assistance in France from Edmond James de Rothschild, proprietor of Château Lafite and a prominent supporter of Jewish agricultural settlement. Rothschild financed the enterprise, supplied French vine material and sent specialists to advise the settlers. The first vineyards associated with the enterprise were planted near Rishon LeZion in 1882. A substantial wine cellar was built there, and a second winery was later established at Zikhron Ya'akov. The Rishon LeZion facility, built in 1890, remains one of Israel’s oldest industrial buildings still in use. The Zikhron Ya'akov winery followed in 1892 and became a major receiving and production center. Both locations remain central to Carmel’s identity. Commercial organization developed quickly. Carmel Wine Co. was formed in 1895 to export wines from Rishon LeZion and Zikhron Ya'akov. The company marketed products in Central and Eastern Europe, Britain and the United States, while Carmel Mizrahi, founded in 1902, distributed wine within the cities of the Ottoman Empire. International exhibitions gave the young industry visibility: Carmel wines were shown in Berlin in 1896 and Hamburg in 1897, and Rishon LeZion wines won a gold medal in Paris in 1900. In 1906 the estates and winery management were transferred to a winegrowers’ cooperative, formally known as the Societé Cooperative Vigneronne des Grandes Caves Richon le Zion and Zikhron Jacob. The cooperative structure remains important to the company’s ownership history. The early twentieth century brought rapid export growth, with branches or commercial presence reported in Damascus, Cairo, Beirut, Berlin, London, Warsaw and Alexandria. War-related demand temporarily supported sales, but the business later suffered from the loss of Russian markets after the October Revolution, American Prohibition, and changing political conditions in Egypt and the wider Middle East. Some vineyards were uprooted and converted to citrus production. Wine production revived during the Second World War and in the decades after Israel’s establishment. Rothschild’s estate transferred the two wineries to the winegrowers’ cooperative in 1957. For part of the postwar period, Carmel concentrated on sweet wines, especially wines used for sacramental purposes. Israeli producers gradually broadened their approach, and in 1971 Carmel introduced Cabernet Sauvignon and Sauvignon Blanc varietal wines to the American market. The Israeli wine sector encountered serious difficulties in the early 1980s. From the latter part of that decade onward, stronger consumer interest in quality encouraged better vineyard selection, new grape varieties, expanded growing regions, improved fermentation methods and investment in winery facilities. Carmel renovated its historic plants and added or developed smaller and regional facilities. Yatir Winery, built in 2000 in the Tel Arad area, was established to work with grapes from the Yatir Forest vineyards. A new facility at Zikhron Ya'akov was built in 2003, and Ramat Dalton Winery was built in 2004 to process grapes from the Upper Galilee and Golan Heights. Carmel’s modern vineyard footprint covers multiple climates and elevations. Northern vineyards in the Galilee and Golan provide cooler conditions suited to premium production; the Sharon and central coastal regions retain the historical concentration of Israeli grape growing; the Judean Hills supply grapes from warmer days and cooler nights; and the high-elevation Yatir and Ramat Arad areas represent Carmel’s engagement with the Negev and southern Judean region. The company is described as owning approximately 1,400 hectares of vineyards and harvesting about 25,000 tonnes of grapes in the cited reference material. The winery has also maintained an international orientation. It sponsored the Carmel Trophy for Best Eastern Mediterranean Producer at the International Wine & Spirit Competition in London beginning in 2003, appointed Peter Stern as a winemaking consultant in 2004, and continued exports to more than 40 countries. Its current identity combines historical continuity, kosher production, large-scale Israeli distribution, regional vineyard specialization and a portfolio that includes wine, brandy and grape juice.
- 2004Ramat Dalton Winery built
A regional winery was established in Upper Galilee to receive grapes from the Galilee and Golan Heights.
- 2003Carmel Trophy sponsorship begins
Carmel agreed to sponsor the Carmel Trophy for Best Eastern Mediterranean Producer at the International Wine & Spirit Competition in London.
- 2000Yatir Winery built
A small winery was established near Tel Arad to process grapes from Yatir Forest vineyards.
- 1971Cabernet Sauvignon and Sauvignon Blanc varietal wines introduced in the United States
Carmel presented these varietal wines to the American market, helping broaden the image of Israeli wine beyond sweet sacramental styles.
- 1957Two wineries transferred to the cooperative
The Rothschild estate deeded the principal wineries to the winegrowers’ cooperative.
- 1906Winegrowers’ cooperative takes over winery management
The vineyards and management were transferred to the Societé Cooperative Vigneronne des Grandes Caves Richon le Zion and Zikhron Jacob.
- 1900Gold medal at the Paris World's Fair
Rishon LeZion wines received a gold medal at the Paris exposition.
- 1895Carmel Wine Co. formed
A dedicated export company was organized to sell wines from Rishon LeZion and Zikhron Ya'akov.
- 1892Zikhron Ya'akov Winery established
A second major winery was built at Zikhron Ya'akov near Mount Carmel.
- 1890Rishon LeZion Winery built
The first major Carmel winery and cellar was constructed at Rishon LeZion.
- 1882First vineyards established near Rishon LeZion
French rootstock was imported and vineyards were planted with Edmond James de Rothschild’s support.
Products and positioning
A historic Israeli wine house combining kosher winemaking, broad domestic distribution, international exports and wines sourced from Israel’s principal growing regions.
Carmel winesWine
The core portfolio includes red, white, rosé, sparkling and regional wines made from grapes grown across Israel. Carmel’s range spans accessible domestic products and premium wines associated with specific vineyards and growing regions, including the Galilee, Golan Heights, coastal districts and Judean Hills.
Yatir winesPremium regional wine2000
Yatir wines are associated with Carmel’s Yatir Winery and vineyards in the southern Judean Hills and Yatir Forest area. The range represents Carmel’s use of high-elevation, arid-region vineyards and its premium regional-wine strategy.
BrandyBrandy
Carmel manufactures brandy alongside wine and grape juice. The product category forms part of the company’s longstanding beverage production and export activities.
Grape juiceNon-alcoholic grape beverage
Grape juice is one of Carmel’s principal non-wine products and has historically been produced and exported alongside its wine and brandy operations.
Flagship businesses
- Red wines
- White wines
- Sparkling wines
- Regional and vineyard-designated wines
- Kosher wines
- Yatir wines
Marketing campaigns
- 2003Carmel Trophy for Best Eastern Mediterranean Producer
United Kingdom · International wine trade
Carmel sponsored a trophy at the International Wine & Spirit Competition in London to promote recognition of Eastern Mediterranean wine production.
Outcome. The sponsorship positioned Carmel as an advocate for the broader Eastern Mediterranean wine category; a later commercial outcome is not specified in the reference.
Brand decisions
- 2004Bring in external winemaking expertiseStrategy
Carmel was investing in modernization, new facilities and higher-quality wines.
What changed. Peter Stern, formerly associated with Mondavi and Gallo, was appointed as a winemaking consultant.
Aftermath. The appointment formed part of Carmel’s effort to strengthen technical capability and premium positioning.
- 2000Develop a dedicated Yatir regional wineryStrategy
Carmel sought to work with grapes from the high-elevation Yatir Forest and southern Judean region.
What changed. Carmel established Yatir Winery with local winegrowers, initially as a 50 percent joint venture.
Aftermath. The reference describes Yatir Winery as later becoming wholly owned by Carmel and serving as a premium regional operation.
- 1971Introduce varietal wines to the United StatesProduct launch
Carmel’s postwar output had been strongly associated with sweet wines, including sacramental products.
What changed. The winery presented Cabernet Sauvignon and Sauvignon Blanc varietal wines in the American market.
Aftermath. The move supported the wider modernization and quality-oriented development of Israeli wine.
Recent events
- 2004Carmel appoints Peter Stern as winemaking consultant
Carmel appointed California-based consultant Peter Stern, formerly associated with Mondavi and Gallo, to advise its winemaking program.
Leadership changeOther - 2004Carmel establishes Handcrafted Wines of Israel
The winery founded Handcrafted Wines of Israel as part of its development of higher-end and more individually styled Israeli wines.
Product launch - Carmel expands Yatir Winery ownership
Yatir Winery began as a 50–50 venture involving Carmel and local winegrowers and is described in the reference material as later becoming wholly owned by Carmel.
M&A
Sources
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