History of the distillery: The site was choosen by its founder Hector Henderson in the
middle of the 19th century. One of his attractions was of course the plentiful
supply of good, clean water from Loch nam Ban. From the surrounding rocks the
distillery was built together with comfortable homes for the employees (the
distillery still owns seven houses in the small village of Caol Ila).
Hector Henderson’s business was, however, less successful
than his choice of site and the distillery was taken over by Norman Buchanan,
owner of the Isle of Jura Distillery. In 1863 he sold it to Bulloch Lade &
Co, of Glasgow, traders in whisky stocks at a time when blended whisky was
increasing in popularity. They extended and improved the distillery and in 1879
built the pier for the puffers. By the 1880’s over 147,000 gallon (668,000
litres) of whisky was being produced each year.
In 1920 Bulloch Lade went into liquidation, along with
many other Scotch whisky companies. After a couple of owner transfers Caol Ila
ended up in the hands of United Distillers (today Diageo).