Paddy Whiskey was first produced by the Cork Distilleries Company, two years after being started in 1877, although it was originally known as Cork Distillery Company Old Irish Whiskey.

In 1882, the company hired a young Corkman called Paddy Flaherty as salesman. Flaherty travelled the pubs of Cork, buying drinks for the customers. His sales techniques were so good that his name became synonymous with the whiskey both in Ireland and abroad. In 1912, the distillery officially renamed the whiskey Paddy Irish Whiskey in his honour.

During the 1920s and 1930s in Ireland, whiskey was sold in casks from the distillery to wholesalers, who would in turn sell it on to publicans. Cork Distilleries Company wanted to prevent any fluctuation in whiskey quality due to the bonder underhandedly diluting the casks. Thus, the company became one of the first to bottle their whiskey.