When the United States enacted Prohibition in 1920, banning the production, sale, and transport of alcoholic beverages, the ripple effects traveled far beyond American borders. Across the Atlantic, the Scotch whisky industry—already a growing global force—felt the tremors in profound ways. Surprisingly, while Prohibition presented monumental challenges, it also opened up unexpected opportunities that would help shape the future of Scotch whisky.
A New Kind of Demand
While Prohibition criminalized alcohol, it didn’t erase America’s thirst for spirits. Demand for whisky didn’t just survive—it thrived underground. Speakeasies, bootleggers, and illicit supply chains flourished, and among the most sought-after contraband was none other than Scotch whisky.
Scotch earned a reputation for quality and sophistication. American consumers—especially the wealthy elite—developed a strong preference for imported Scotch over hastily made domestic spirits. Clever smugglers capitalized on this, moving cases of Scotch through Canada, the Caribbean, and even hidden compartments in ships.
An Unintended Boost for Scotch's Reputation
Prohibition inadvertently elevated Scotch whisky's status in America. As local alcohol became increasingly risky and often dangerously impure (think "bathtub gin" and homemade moonshine), Scotch stood out as a safe and refined option. Being illegal also gave Scotch an aura of exclusivity and luxury. What was once a niche spirit in the U.S. became an object of aspiration.
In this sense, Prohibition marketed Scotch to a massive new audience—without Scotch distillers needing to lift a finger.
Struggles at Home
However, not all was rosy for the Scotch industry. Export numbers to the U.S. plummeted, and legally operating distilleries that relied on American sales struggled financially. Some closed or consolidated. Others turned to alternate markets like Canada, India, and parts of Europe to survive.
Additionally, some distilleries bent the rules to survive. "Medicinal whisky" was legal in the U.S. with a prescription, and savvy players maneuvered to get their products categorized accordingly.
The Post-Prohibition Boom
When Prohibition ended in 1933, Scotch whisky was poised to dominate the American market. American distilleries needed time to rebuild their operations after years of inactivity, but Scotch was ready to flow. Many Scotch brands expanded aggressively into the U.S., and the 1930s and 1940s saw Scotch whisky firmly entrench itself in American drinking culture.
Without the Prohibition-era underground fame, Scotch might have remained a niche spirit in America for decades longer.
Lasting Legacy
The Scotch industry's resilience during Prohibition helped forge stronger global distribution networks and honed its brand as a premium product. It also taught Scotch makers valuable lessons about adapting to volatile markets—lessons that would serve them well during later disruptions like World War II.
Today, when you sip a fine Scotch in New York, Chicago, or Los Angeles, you're tasting a spirit that, in some ways, owes its American popularity to the secret bars and underground parties of the Roaring Twenties.
