The vineyard was reborn in Israel when, in 1882, the first Israeli pioneers turned to Baron Edmond de Rothschild, owner of the famous Bordeaux grand cru classé Chàteau Lafite in Pauillac, to allow the planting of vines. This is how Carmel was born: the vineyard was planted from 1889 and the first winery in Rishon Lezion was completed in 1890, followed by the Zichron Yaacov the following year, the latter including the creation of 6 huge underground cellars in Givat Zammarin.

Wine was produced in Carmel during the Ottoman Empire, then the British Mandate, and finally after the creation of the State of Israel, without interruption. 3 Israeli prime ministers have even worked in Carmel: David Ben-Gurion, Levi Eshkol and Ehud Olmert. In 1957, James Rothschild, son of Baron Edmond, transferred ownership of the estate to the Israeli Winegrowers' Association.

From the end of the 90s, the estate developed rapidly with the planting of several dozen hectares of vines on the best terroirs of the country and today extends mainly in the Upper Galilee and the Golan, but also in Shomron, Jerusalem and Negev. The modernisation of the cellars is also undertaken with facilities benefiting from the latest technological advances, which coexist with the traditional methods of winemaking and the historic facilities of the estate. In 2013, a group of investors acquired Carmel and at the end of 2015, the oldest winery of the estate in Rishon Lezion was transferred to a new site in Alon Tavor.

Carmel's wines have been renowned worldwide for several decades and have won numerous awards from leading institutions such as Decanter.