This article is from the rec.food.drink.beer FAQ, by John Lock with numerous contributions by others.
The making of "ice" beers, in general, involves lowering the
temperature of the finished product until the water in it begins to
freeze and then filtering out the ice crystals that form. Since water
will freeze before alcohol, the result is higher alcohol content. The
ice forms around yeast cells, protein particles, etc. so these get
removed as well; leaving fewer components to provide taste and
character.
This process is not new to brewing, having been developed in Germany
to produce "eisbocks". Apparently they were produced by accident
during the traditional spring celebration with bock beers. Spring,
being the capricious season that it is, probably sent a late cold
snap around one year causing some of the spring bocks to partially
freeze. People drank it anyway and liked the change in flavor.
In its current incarnation, the process is an offshoot of the
concentrated fruit juice industry. It was developed by orange growers
to reduce the costs of storage and shipping by concentrating the
fruit juice through freezing and removal of some water. Labatt
Breweries claims to have pioneered this process for brewing and most
of the large North American brewers quickly followed suit in the
usual marketing frenzy.
The main difference between these "ice" beers and true eisbocks is
taste and character. Any beer brewed using this method will only be
as good as the brew with which you start. In other words, if you
start with a bland, flavor-impaired, adjunct-laden beer and remove
some of the water, you end up with a bland, flavor-impaired,
adjunct-laden beer with more alcohol. OTOH, if you take a rich,
malty, traditionally brewed bock and remove some of the water, you
end up with an eisbock.
 
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