Caol Ila is derived from Gaelic Caol Ìle for “Sound of Islay” (lit. “Islay Strait”) in reference to the distillery’s location overlooking the strait between Islay and Jura. It was founded in 1846 by Hector Henderson. The distillery did not fare well, and changed hands in 1854 when Norman Buchanan, owner of the Isle of Jura Distillery, took over. In 1863 the business was acquired by Bulloch Lade & Co, of Glasgow, traders in whisky stocks. According to the 1871 census, Duncan Johnston was the Distillery Manager at the time. Duncan was the nephew of John Johnston of Lagavulin and cousin to the Laphroaig Johnstone and so the family were involved with yet another distillery on the island. By the 1880s over 147,000 imperial gallons (670,000 L) of whisky were produced there each year.

Caol Ila is one of the lighter Islay whiskies, pale in colour, with peaty, floral and peppery notes. In addition to being sold as a single malt, it is used heavily (around 95% of their production) in blends such as Johnnie Walkers Black Label. Since 1999, the distillery has also produced a non-peated “highland spirit”