The distillery was founded in 1869 by John Smith on land leased from Sir George Macpherson-Grant.

The site was chosen by Smith both for its proximity to the waters of the Craggan burn and because it was close to the Strathspey Railway.

[2] Smith was an experienced distiller, having already been manager of the Macallan, Glenlivet, Glenfarclas and Wishaw distilleries.

[1] In 1923, after Gordon death, his widow Mary Jane takes over and finally sells it to the Cragganmore-Glenlivet Distillery Co., which is owned equally by Peter Mackie from White Horse and Ballindalloch Estate.

[3] Mackie sold his share to The Distillers Company but Macpherson-Grant family keeps its 50% ownership until 1965.