At the end of the 19th century, Dailuaine was the largest single malt distillery in Speyside and also one of the most innovative in terms of design. It was built in 1851 by William Mackenzie and by the 1860s was being serviced by the Strathspey railway. The distillery was rebuild in 1884. Mackenzie & Company became a limited company in 1890, and merged with Talisker to become Dailuaine – Talisker Distillers Ltd in 1898. By this time the business was in the hands of Mackenzie’s son, Thomas, who had built Imperial Distillery the previous year. When Tomas died without heir in 1915 Dailuaine – Talisker was bought by its principal customers, Walker’s Dewar’s W.P. Lowrie and D.C.L.A fire destroyed much of the property in 1917, and it was rebuilt.
A major reconstruction took place in 1959/60, when the floor maltings were converted into a Saladin box system, the number of stills increased from four to six and mechanical coal-stoking was introduced.
Dailuaine is also home to a dark grains plant and processes all of the spent grains from Diageo’s southern and central sites.