Royal Iceland is built on the basis of Bakkavör, founded 1986. The company specialized in handling of cod roe and other roe products. The factory was moved to Reykjanesbær in 1996. Following that the company grew considerably and branched into other operations. The company was made a subsidiary in 1999 and then renamed Fram foods Ísland hf in 2003 when it was sold from the Bakkavör Group. The company moved into a new factory at it’s current location in 2007. The facilities are 3.000 m2 and newly renovated.

The company was bought in March 2013 by a group of investors looking to build on it´s history and expand it´s product base. As a part of that, the company got a new name, Royal Iceland.