Nestled on the southern coast of Islay, Port Ellen Distillery is an icon of Scottish whisky craftsmanship. Its smoky, peaty expressions are highly sought after in the whisky community but remain extremely rare due to its closure in 1983. Now, after being acquired by Diageo, Port Ellen is set to become an even greater force in the whisky market. In honour of its recent re-opening, we’ll dive into the rich history of Port Ellen, its acquisition by Diageo, and what the future holds for this iconic distillery.

The History of Port Ellen

Port Ellen Distillery was established in 1825 by Alexander McKay, originally named the “Port Ellen Maltings.” The distillery saw various owners throughout its early years, including John Ramsay, who made Port Ellen globally known name as of the first distilleries to exporting Scotch whisky to the United States in 1865. The distillery was ultimately rebranded in 1920 as the Port Ellen Distillery. Known for its unique character, shaped by Islay's distinct terroir and the coastal climate, Port Ellen produced a range of single malts that featured the signature Islay peat smoke.

Port Ellen Distillery prior to its closure. Photograph from Diageo Archive.

In 1983, Port Ellen Distillery closed due to falling demand and shifting market dynamics. It became known as a ‘ghost’ distillery, along with various other distilleries that stopped operating that year. The distillery's last remaining stocks quickly became coveted, with bottlings reaching extraordinary prices at auctions, further enhancing its legendary status.

Diageo’s Acquisition and the Future of the Port Ellen Distillery

In 1999, Diageo, one of the world's largest alcoholic beverage companies, acquired the Port Ellen Distillery along with several other distilleries as part of its £185 million investment in Scotch whisky tourism. In 2017, it announced plans to revive the distillery, with an aim to bring back the distillation process while honouring the craftsmanship and tradition that Port Ellen is known for.

To maintain the distillery's legacy, Diageo has been carefully managing the remaining stocks of Port Ellen whisky. The annual release of Port Ellen bottlings, which can all be considered limited editions, has only intensified demand. These releases showcase the distillery's characteristic peatiness, complemented by complex layers of fruit, spice, and maritime notes, making them some of the most loved and sought-after whiskies in the world.

As for the distillery itself, it has been redesigned and built from the ground up, centred around sustainability, experimentation, and in true Port Ellen spirit, innovation. The new distillery is ultra-modern but pays homage to the original distillery with its Phoenix Stills, which are precise replicas of the original Port Ellen stills – they will distil the classic smoky whisky that the distillery is known for. Its other pair of stills, The Experimental Stills, is dedicated to the art and science of whisky exploration.

Port Ellen Distillery’s new glass still house – an ode to the old and the new of the distillery.

Seeing that Port Ellen is so beloved by whisky collectors and enthusiasts, Diageo is making sure that the whisky community can also experience the new distillery for themselves. Port Ellen is hosting various distillery experiences for its passionate followers, including a complimentary open day every month, starting from June 2024, for its followers to not only see the re-envisioned distillery but also to meet the team and learn of Port Ellen’s latest experiments and activities. Learn about the rest of the experiences here.

A Toast to the Future

The reopening of Port Ellen Distillery is a remarkable event in the world of whisky – it signifies not just a new beginning for the distillery but also a reconnection with a rich history that has enamoured whisky lovers across generations. With the promise of new releases that perfectly blend tradition and modernity, coupled with the mystique of its storied past, we’re sure that Port Ellen will become a favourite for many newcomers, and that seasoned whisky enthusiasts will once again remember why they love this distillery.  

While we have to wait a few years to try whisky from the new distillery, you can still experience the taste of the distillery with the Port Ellen 40-Year-Old ‘9 Rogue Casks’, distilled in 1979. Get your hands on bottle #309 now on WhiskyGenius!

Enjoy whisky responsibly.

Banner photograph from Diageo Rare & Exceptional.