The word ‘cragganmore’ is Gaelic for ‘the great rock’, and a large rock stands at the entrance by the old railway track (now a walk path for the Speyside Way) that run along the side of the river Spey. The founder John Smith chose the place, not far from Ballindaloch Castle, to be close to the new Strathspey railway and for the water quality of the Craggan burn.

The flat or ‘T-shaped’ style of the lyne arm on the spirit stills at Cragganmore produce a milder, smoother whisky that distinguishes Cragganmore’s aristocratic fine spirit. Prior to destillation the wash undergoes a second fermentation that contributes aromas. Cragganmore became one of the six "Classic Malts", series launched on the market in 1989 by UDV. 70 % of production is used in blends like McCallum's Perfection and White Horse. 

Smith had experience from Macallan, Glenfarclas and Glenlivet when in 1869 he set up the first new pot-still distillery in the area since the 1840s. Eighteen years after its foundation the first ever ‘Whisky Special’ train steamed out of Ballindalloch station, an event that is featured on the label of the 12-year-old.

The distillery was run by the family until 1923, when the distillery was acquired by White Horse Distillers. In 1901 Cragganmore already had a good reputation, at a time when distilleries were closing down Cragganmore was renovated.

In 1965 White Horse was taken over by D.C.L (Distillers Company Ltd.). Whithin a year they had doubled the production capacity.  Today it is owned by Diageo.