Alcohol is available cheaper in Luxembourg than anywhere else in Europe. It's also common to come across home-produced alcohol, called eau de vie, distilled from various different fruits and usually fifty percent alcohol by volume.

Some white and sparkling wines are even produced in Luxembourg, alongside the north bank of the Moselle, which has a winemaking history dating back to the Romans.

The names of some wines made in Luxembourg: Riesling, Pinot Gris, Pinot Noir, Pinot Blanc, Auxerrois, Rivaner, Elbling, Gewurztraminer, and Crémant de Luxembourg.

Look for the National Mark, which identifies authentic Luxembourg wine. Luxembourg has a fair number of breweries, given its tiny size. Imported beers, however, have control of the beer market in Luxembourg.

During the 1970s and 1980s, over 600,000 hectoliters of beer were brewed each year. The peak was reached in 1976 when over 800,000 hectoliters of beer were brewed, and since then the amount has been decreasing.

In 2001, production dropped below 400,000 hectoliters for the first time since 1950.

Some beers currently made in Luxembourg: Battin Edelpils and other beers at the Brasserie Battin, Bière Blonde and others at the Restaurant Beierhaascht, Bofferding Lager and others at the Brasserie Bofferding, Héngeschter and others at the Cornelyshaff, Diekirch Premium and others at the Brasserie de Luxembourg Mousel-Diekirch SA, Simon Dinkel and others at the Brasserie Simon.

The Brasserie de Redang also brewed beer for five years, but closed in 2005.