Niall MacKenzie, University of Glasgow Professor of Entrepreneurship and Business History, writes in about how the Scotch whisky industry has cultivated its image, appeal, and supply networks over 200 years, withstanding pandemics, trade wars, and even world wars.

This is evident in the industry's impressive export growth, which reached £6 billion in 2022, up from £4.51 billion in 2021. This is the biggest sales increase for any UK manufactured product except aircraft parts.

The industry's focus on exporting began in the 19th century, when the government relaxed regulations regarding blending. This allowed producers to create a consistent and wide variety of flavors to suit different palates, making Scotch whisky more appealing to a global audience. Today, blended Scotch whisky makes up the majority (59%) of the industry's exports by value.

The industry has also used marketing, branding, and distribution strategies to turn single malt Scotch whisky into a luxury product. By building the perception of scarcity and value in age and provenance, the industry has been able to increase the demand for single malts, which now account for around a quarter of the value of Scotch exports.

The Scotch whisky industry is a major contributor to the Scottish economy, employing over 100,000 people and generating billions of pounds in revenue each year. The industry is also a major source of tourism, with millions of people visiting Scotland each year to experience the country's whisky culture.

The future looks bright for the Scotch whisky industry. The global demand for Scotch whisky is expected to continue to grow in the coming years, and the industry is well-positioned to meet this demand. The industry is also investing in new markets, such as China and India, which are expected to become major growth areas for Scotch whisky in the future.

Read the full article on The Conversation website

First published: 7 September 2023

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