Andrew Peary and Robert Bain founded Miltonduff distillery in 1824. The distillery had previously operated illicitly on the site since the turning of the century, but following the passing of the Exercise Act, Peary and Bain established the distillery as a legitimate business operation. After debuting to a successful start in 1866, the distillery was purchased by William Stuart. In 1895 Thomas Yool & Company became part owners of the site, and a few years later Yool went on to completely control the distillery.
Miltonduff has a production capacity of 5.5 million liters. It actually used to be Allied Distillers' largest distillery. Even following Pernod Ricard’s takeover of Allied Domecq, the distillery still has one of the largest capacities in the group, with only Glenlivet's capacity being greater. The water used in production is taken from the Black Burn. As Mosstowie was produced in a pair of pot stills in the site, its production capacity has been lost since the closure of the site.