Following a number of economic failures, in 1885 Rothschild helped to establish the first winery in Israel, Carmel Winery, together with a bottling factory, in Zikhron Ya'akov. This was more successful economically although it was initially short-lived as in 1892 the grapevines succumbed to phylloxera, a type of parasite. After a brief set-back, American seedlings which were resistant to phylloxera were grown and the winery began to flourish. Today, the winery remains in action, as do the huge wine cellars that were carved into the mountain over a century ago.