Banff Distillery, the first to bear the Banff name, was founded in 1824 by James McKilligan & Co. at Banff Bay, Inverboyndie. Ownership transferred to Alex Mackay in 1837, then to James Simpson Sr. and Jr. in 1852. In 1863, James Simpson Jr. built a new facility at Inverboyndie with superior railway access via the Great North of Scotland Railway and premium spring water from Fiskaidly Farm.
The distillery suffered multiple disasters. On May 9, 1877, a major fire destroyed most of the facility except the warehouses. By October 1877, Simpson had rebuilt and resumed operations, keeping a fire engine on site. In 1921, the Simpson family sold part to London's Mile End Distillery Company. In 1932, a subsidiary of Distillers Company Ltd. purchased the entire distillery for £50,000 and immediately halted production.
On August 16, 1941, a German Junkers Ju 88 bomber raid destroyed Warehouse No. 12, burning many whisky casks and contaminating local water supplies, reportedly poisoning livestock. Repairs began in winter 1941, but in 1943 the RAF 248 Squadron occupied the site until war's end.
Post-war restoration ended tragically on October 3, 1959, when a still explosion during repairs destroyed equipment and damaged the distillery, resulting in a £15 fine for safety violations. Operations resumed but the distillery finally closed in 1983. By the late 1980s, most buildings were demolished; the final warehouse burned on April 11, 1991.
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