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The first distillery at Ardbeg on the island of Islay was built by the McDougall brothers at Ardbeg farm in 1798 and run as a commercial business from 1815. However the Ardbeg area was much favoured by smugglers and illicit distillers and distilling had probably been going on in the neighbourhood for some time previously. The excise men discovered a large cache of illicit whisky at the end of the 18th century. During the 18th century many small illicit distilleries were set up by farmers as a way of using up their excess barley.

The water used in the distillery comes from loch Uigidale, which incidentally has lent its name to Ardbeg’s latest bottling. The loch water is very soft and peaty and contributes to the distinctive flavour of Ardbeg whisky, said to be the most peat smoked of all Scotland’s whiskies.

By the mid 1880s the distillery was being successfully run by two McDougall sisters, employing about 60 people compared to the 10 employed today. By the end of the 19th Century Ardbeg’s annual production exceeded 1 million litres of whisky.