William Grant founded the Glenfiddich distillery in 1886, and in the following decade, distillery construction in Speyside reached unprecedented heights. Property developers immediately attempted to purchase or lease land near Glenfiddich. To prevent developers from taking over, the Grant family purchased twelve acres of land, including some of the main thoroughfares of New Balvenie Castle and Balvenie Farm. Balvenie Old Castle is a massive medieval relic, adjacent to this land, concealed within a wall of trees. The new distillery—called 'Glen Gordon' for the first few months—entered production on May 1, 1893. The old mansion, which had stood vacant for over 80 years, was converted into a malting floor. In 1929, the upper part of the house was demolished, and the lower part became Warehouse No. 24. In 1956, the entire Balvenie estate was acquired by the Grant family. The following year, the distillery expanded to four stills; in 1965 two more were added, in 1971 another two, in 1991 one more, and in 2008 another three.

Balvenie Castle is actually a neoclassical mansion built in 1724 by William Duff, the first Earl of Fife, designed by the renowned architect James Gibbs—who had just completed St Martin-in-the-Fields church in London. Legend has it that Duff built it for "a beautiful countess" (not his wife) who had been gifted a greyhound by an admirer. Tragically, the dog turned out to be rabid, bit the countess, and she soon died of the disease. The castle was abandoned after just eight years of occupancy and remained derelict for 80 years until purchased by William Grant. In 1895, the estate belonged to Alexander, Grant's great-nephew. In 1900, he married Princess Louise, Queen Victoria's daughter, becoming the 1st Earl of Fife in his own right. Visitors touring Glenfiddich and Balvenie distilleries often overlook the historic castle, though it's well worth the visit. Its origins are shrouded in Pictish mist. In 1010, Malcolm Canmore allegedly fought the Battle of Mortlach here against Danish forces. What is certain is that in 1296, Edward I of England—the "Hammer of the Scots"—used it as his base during his campaign to subdue Moray. By the mid-14th century, the castle was controlled by Alexander Stewart, son of Robert II, whose notorious cruelty earned him the title "Wolf of Badenoch," especially after he burned Elgin Cathedral following a dispute with the Bishop of Moray. Balvenie prides itself on controlling every aspect of production. The distillery grows a portion of its own barley, maintains traditional floor maltings (supplying about 10% of its needs), operates its own cooperage, and handles bottling on-site. Balvenie was first bottled as a single malt in the 1920s, then introduced its iconic triangular bottle in the early 1970s (see Glenfiddich), followed by the striking retro crystal decanter for "Founder's Reserve" in 1982. That same year, Balvenie Classic was released in an equally distinctive bottle—unlabeled but arguably the first "double wood" single malt ever released. In 2007, William Grant & Sons launched the "Cask Your Own Balvenie" program from Warehouse 24, offering three cask types from 1994: sherry, refill, and bourbon. Customers draw their whisky using a "dog"—a copper tube sealed with a coin and attached to a rope. According to Balvenie cooper Dennis McBain, it's called a "dog" because it's "man's best friend," traditionally hidden down a trouser leg and tied to a belt to prevent discovery (which would mean immediate dismissal). Over the past decade, Balvenie's sales have grown 85%, reaching nearly 3 million bottles annually, ranking it eighth among the world's best-selling single malts.