In James Armand de Rothschild, identifying a demand for beer on the part of British nationals residing in Palestine, established the first local commercial brewery in partnership with Gaston Dreyfus, in Rishon LeZion. In 1940 the Palestine Brewery () – or, as it was also known, the Nesher Brewery – was commissioned by the AACI to supply beer to Australian troops stationed in Palestine. By 1942 the brewery was compelled to enlarge its plant in order to meet increased demand being generated on the part of both military and civilian consumers.