In 1881, William Robertson, a Glasgow-based whisky broker and blender and partner at Robertson & Baxter, established the Bunnahabhain Distillery. In partnership with the Greenlees Brothers (successful blenders of Lorne, Old Parr, and Claymore, and owners of Hazelburn Distillery), they formed 'Islay Distillers Company Ltd.' The company was renamed 'Highland Distilleries Company Ltd.' in 1887 and merged with Glenrothes-Glenlivet. The distillery is situated in the most remote area of Islay, where building a distillery was no easy feat: during the first winter of construction, two large boilers awaiting installation were blown into the sea by strong winds. The site was chosen because of Robertson & Baxter's close relationship with Bulloch Lade & Company, which was rebuilding the nearby Caol Ila Distillery at the time. The location also offered abundant water from Staoinsha Loch and good sea access. The first spirit was produced in January 1883. The original distillery had a pair of stills. In 1963, capacity was doubled, coinciding with the end of floor malting operations. Although reported capacity was 3.4 million liters per year in 1987, the distillery was actually closed from 1982 to 1984, and by 2002 production had fallen to 750,000 liters. Highland Distilleries Company Ltd. was renamed Highland Distillers in 1998, then became The Edrington Group in 1999. Surprisingly, the company sold Bunnahabhain to Burn Stewart Distillers in April 2003 for £10 million. In April 2013, Burn Stewart's parent company CL World Brands was acquired by Distell for £160 million. In February 2019, Distell announced a three-year, £20 million distillery renovation plan. The distillery will demolish some warehouses and build new ones, with all buildings being renovated to accommodate a 'world-class' visitor center.

Bunnahabhain: In addition to the distillery itself, a one-mile-long road had to be built on a cliffside to connect the distillery to Port Askaig, a port built in the turbulent waters of the Islay Strait. Houses were also built for the workers. Total estimated cost: £30,000. After completion, the distillery was highly praised. Alfred Barnard visited five years after opening, describing it as 'a neat row of buildings, quite enclosed. Passing through a magnificent gate into the distillery, one immediately feels the compactness and symmetry of the construction.' To this day, almost nothing has changed. Bunnahabhain is the most remote and northernmost distillery on Islay. Its products are usually described as the mildest Islay single malt. This light style is used to balance blended whiskies, especially Cutty Sark and Black Bottle (also sold to Burn Stewart). Traditionally lightly peated (2-3ppm phenol), but in 1997 they experimented with heavily peated (35-40ppm phenol) and produced several batches of smoky products during Burn Stewart's ownership. The first, named Moine (Gaelic for 'peat'), was released in 2004 during the Islay Festival as a 6-year-old. Since the distillery first released single malt in 1979, the label has featured a sailor standing behind a ship's wheel, bearing the motto 'Westering Home'. This phrase comes from a famous Scottish song: Westering Home, with a song in the air, Light in the eye and it's goodbye to care; Laughter o'love and a welcoming there, Isle of my heart my own one.