Caol Ila gets its name from the Gaelic phrase "Caol Ìle," which means "Sound of Islay," named after its location on the Islay island. The distillery was established in 1846 by Hector Henderson and was later taken over by Bulloch Lade. By the 1880s, it produced more than 670,000 litres of whisky annually, led by Duncan Johnston, who came from a family associated with other Islay distilleries like Laphroaig and Lagavulin.
In 1920, Bulloch Lade faced financial difficulties and voluntarily went into liquidation. In 1927, it was acquired by DCL (now known as Diageo), and in 1972, the distillery was demolished and rebuilt, expanding from its original two stills to six, making Caol Ila the largest whisky producer in Islay.
In 2011, Caol Ila underwent another significant expansion, adding a new mash tun and more washbacks, increasing its annual production to 6.5 million litres.
Today, Caol Ila is a testament to the rich history and enduring legacy of Islay's whisky production. From its humble beginnings in 1846 to becoming the island's largest producer, the distillery has weathered the tides of time and innovation.