The Royal Burgh of Banff was home to two distilleries, both of which bore the name of the town. The first Banff Distillery was founded in 1824 following the Whisky Excise act of 1823. This original Banff Distillery was established at the Mains of Colleonard by Major James McKilligan and his business partners, Alex Mackay and William Hodge. Ownership of the distillery was transferred to Alex Mackay in 1837 and then Mr James Simpson in 1852 ​ By 1863 the original Banff Distillery was closed down and a new Distillery was built in Inverboyndie to take advantage of a better water supply. The second Banff Distillery was closed and dismantled by 1983 with the final warehouse being destroyed in a fire in 1991.