Bunnahabhain, Scottish Gaelic for Mouth of the River, was founded in 1881 near Port Askaig on Islay. The village by the same name, was founded to house the distillery workers. The distillery is one of nine active distilleries on the island.
The distillery produces both peated and unpeated whisky, with the standard range being unpeated, unlike most Islay distilleries. In 2010 their whiskies returned to being produced non-chillfiltered, with a natural colour at 46.3%.
In 2014 Burn Stewart, the owner of the distillery, merged with the South African company, Distell, who now own the distillery among others.