Although it was closed in 1983, Port Ellen is still one of the most well-known distilleries on Islay. Relatively unknown during its operation, its reputation has blossomed since its closure, and the value of the whisky bottles from the distillery has exploded, making them some of the most expensive whiskies to find.
It was founded in 1825 on the outskirts of the town of the same name and operated without incident until 1930 before being mothballed. Owned by Distillers Company Ltd., it reopened in 1967 after some renovations and expansions to supply whisky for the company's blends. Despite its growth, it remained the smallest of DCL's distilleries on Islay, and when the downturn of the 1980s necessitated the closure of one of these distilleries, Port Ellen was the obvious choice.
Today, the site is a malting facility producing much of the malt needed on Islay, but since the distillery itself was dismantled, the supply of Port Ellen whisky is finite, and the few remaining casks are hidden in warehouses across Scotland.
While the owner Diageo releases a bottling annually, independent bottlers are now the main source for whisky from this lost distillery. In May 2019, Diageo submitted plans to revive the distillery and build a new one.