The distillery was founded in 1869 by John Smith on land leased from Sir George Macpherson-Grant. The site was chosen by Smith both for its proximity to the waters of the Craggan burn and because it was close to the Strathspey Railway. Smith was an experienced distiller, having already been manager of the Macallan, Glenlivet, Glenfarclas and Wishaw distilleries.
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Cragganmore distillery is on the official Scotland's Malt Whisky Trail which covers eight Speyside distilleries and the Speyside Cooperage.
Cragganmore is marketed by United Distillers under their Classic Malts brand.