The earliest record of
distillation in Scotland is in the
Exchequer Rolls of Scotland for 1494. The Exchequer Rolls' record crown income and expenditure and the quote records eight
bolls of malt given to Friar John Cor to make aqua vitae over the previous year. The term is
Latin for "water of life" and was the general term for distilled
spirits. This would be enough for 1,500 bottles, which suggests that distillation was well-established by the late 15th century. The first known reference to a
still for making "aquavite" in Scotland appears in the
Aberdeen council registers, in a case heard in 1505 by the town's bailies concerning the inheritance of goods belonging to a chaplain named Sir Andrew Gray, who died in 1504. Among his goods was recorded (in
Middle Scots) "ane stellatour for aquavite and ros wattir'". Aqua vitae (in the form of wine or spirits) was used when making gunpowder to moisten the slurry of saltpetre, charcoal and sulphur. As a drink, Scotch whisky was a favourite of King
James IV of Scotland. Spirit production was first taxed by the
Parliament of Scotland from January 1644, with an excise duty of 2s 8d imposed per
Scots pint; instigating the illicit distilling of spirits within the country. Between the 1760s and the 1830s a substantial unlicensed trade originated from the
Highlands, forming a significant part of the region's export economy. In 1782, more than 1,000 illegal stills were seized in the Highlands: these can only have been a fraction of those in operation. The
Lowland distillers, who had no opportunity to avoid taxation, complained that untaxed Highland whisky made up more than half the market. The heavy taxation during the
Napoleonic Wars gave the illicit trade a large advantage, but their product was also considered better quality, commanding a higher price in the Lowlands. This was due to the method of taxation: malt was subject to tax (at a rate that climbed substantially between the 1790s and 1822). The licensed distillers, therefore, used more raw grain in an effort to reduce their tax bill. The Highland magistrates, themselves members of the landowning classes, had a lenient attitude to unlicensed distillers—all of whom would be tenants in the local area. They understood that the trade supported the rents paid. Imprisoned tenants would not be able to pay any rent. In 1823,
Parliament eased restrictions on licensed distilleries with the
Excise Act 1823 (
4 Geo. 4. c. 94), while at the same time making it harder for the illegal stills to operate. Magistrates found counsel for the Crown appearing in their courts, so forcing the maximum penalties to be applied, with some cases removed to the
Court of Exchequer in
Edinburgh for tougher sentences. Highland landowners were now happy to remove tenants who were distillers in
clearances on their estates. These changes ushered in the modern era of Scotch production: in 1823 2,232,000 gallons of whisky had duty paid on it; in 1824 this increased to 4,350,000 gallons. A farmer, George Smith, working under landlord the
Duke of Gordon, was the first person in Scotland to take out a licence for a distillery under the new act, founding the
Glenlivet Distillery in 1824, to make single malt Scotch. Some of the distilleries which started legal operations in the next few years included
Bowmore,
Strathisla,
Balblair, and
Glenmorangie; all remain in business today. The column still allowed for
continuous distillation, without the need for cleaning after each batch was made. This process made manufacturing more affordable by performing the equivalent of multiple distillation steps. The new still dramatically increased production and the resultant whisky was less intense and smoother, making it more popular. In the downturn,
The Distillers Company were able to buy up other firms' assets. The industry was also affected by disputes about whether grain or blended whisky was worthy of the name, with an adverse decision in North London Police Court in 1905. A
Royal Commission on Whisky and other Potable Spirits was appointed in 1906 and reported in 1909 with a victory for the grain distillers and blenders. The industry was further affected by
World War I,
Prohibition in the United States and later, by the
Great Depression; many of the companies closed and never re-opened. Of the 159 distilleries operating in the boom years around 1900, only 15 survived to 1933. Starting in 1981 whisky distilleries slashed production by a third and kept it low for a decade. During that time many distilleries closed.
Banff,
Brora,
Coleburn,
Convalmore,
Dallas Dhu,
Glen Albyn,
Glenesk,
Glen Flagler,
Glenlochy,
Glen Mhor,
Glenugie,
Glenury,
Millburn,
North Port,
Port Ellen and
St Magdalene were mothballed, shut down or demolished. Since the 2010s, Scotch whisky has entered a new phase of growth with new distilleries like
Ardnahoe and
Borders opening and older distilleries like
Brora,
Port Ellen and
Rosebank reopening. == Regulations and labelling ==