Caol Ila Distillery is a Scotch whisky distillery near Port Askaig on the isle of Islay, Scotland. The first distillery on the side – a small bay just north of the ferry point at Port Askaig – was built in 1846 by Hector Henderson, who took advantage of copious water from Loch nam Ban. The side had previously been used for washing lead ore. It enjoys splendid views across to Jura. A number of houses were built on the hillside above the distillery, with a shop and Mission Hall for the employees. In 1920 Bulloch Lade went into voluntary liquidation, and a consortium of businessmen formed the Caol Ila Distillery Company Ltd. In 1927 the Distillers Company acquired a controlling interest in Caol Ila, and in 1930 Scottish Malt Distillers Ltd obtained ownership of all the shares.
The distillery closed during World War II, from 1942 to 1945, because of wartime restrictions on the supply of barley to distillers. In 1972 the original distillery was demolished and replaced by a larger and more efficient building in S.M.D.’s so–called ‘Waterloo Street’ style. It resumed production in 1974, with six still. During 2011/12 Diageo added further two stills.