The current Lochnagar distillery was founded in 1845 by John Begg, the third distillery built on this stretch of Deeside after its two predecessors both burned down, reportedly at the hands of illicit competitors. Begg wrote directly to Balmoral inviting Queen Victoria and Prince Albert to see the distillery when they took up residence nearby; they visited in 1848, and the royal warrant and the Royal name followed.
The distillery remained in the Begg family until 1916, when it passed to John Dewar & Sons, later part of the Distillers Company and eventually Diageo. It is one of the smallest working distilleries in Scotland, producing on a small scale by hand, and its position a mile from Balmoral Castle remains central to how it presents itself today.