In early 1892 work began to convert an 18th century mansion - Balvenie New House - into a distillery.

The Balvenie New House had been purchased by William Grant in March of the same year. Uninhabitable and austere, it was a building of some grandeur with the coat of arms of the Duffs carved into the pediment of its second story.

William Grant was a clever businessman and saw this as another venture. He had the land, the rights to use the water and a strong business compulsion to extend his options.

The basement was to become a bonded store for maturing whisky, the first storey a malt floor, whilst the upper two floors were to be used as grain lofts.