Brand Building and Structural Change in the Scotch Whisky Industry since 1975

The stagnation in demand for Scotch whisky from the late 1970s encouraged leading producers to switch from a production-driven to a market-driven approach to their industry. Their attempts to add value by building brands have been regarded by some commentators as simply an extension of existing practices. This article argues that a radical shift took place in the marketing mix in the mid-1980s, with attention increasingly paid to ensuring an optimal balance between product, price, promotion and place. The adoption of a strategy with a more focused approach to brand-building resulted in major structural changes in the Scotch whisky industry as firms integrated forwards so as to ensure that quasi-rents were not dissipated. Acquisitions and joint ventures with other international alcoholic beverage producers also occurred in an effort to increase global market coverage.