John Birnie was the manager of Glen Albyn distillery and also the driving force behind this successful operation (production doubled between 1887-1892). Unable to purchase shares in the distillery, he partnered with Charles Mackinlay & Company, a wine and whisky merchant from Leith, to purchase land opposite Glen Albyn on the Caledonian Canal and build Glen Mhor distillery. The distillery began production in 1894, designed by Charles Doig, using a water-driven 30-foot high turbine until it was replaced by an electric motor in the early 1950s. Even so, until around 1960, the switchers on the washbacks were still water-powered. Mackinlay & Birnie became a limited company in 1906. John Walker & Sons held 40% of the shares and acquired Glen Albyn in 1920. In 1925, Glen Mhor added a third still and in 1963 converted all stills to steam internal heating. In 1949, the distillery installed a Saladin box. In 1972, Mackinlay & Birnie was acquired by D.C.L. and transferred to S.M.D. in 1972. In 1983, Glen Mhor was demolished and the site is now a shopping center.

Both Glenmorangie and Glen Albyn were supplied via the Caledonian Canal, including peat from Orkney. The drinks magazine Harper's commented: 'The building's exterior is unadorned. Nevertheless, the distillery is solidly constructed and well-arranged.'