Beverages: Scotch on the Rocks

During the late 1960s and early '70s, the copper stills of Scotland worked overtime to satisfy the fast-growing taste for the country's malt whisky. The industry grew to employ 25,000 workers, and Scotch ranked as Britain's fifth-biggest export. But after peaking in 1978 at sales of $2.5 billion, Scotch has gone on the rocks. In a report issued last week' Britain's National Economic Development Office stated that distillers are working at about 50% of capacity and that industry employment has fallen by about 28%.

Despite slower production, there is now a two-year surplus of Scotch. Reason: the whiskies that are currently coming of age were produced at least six years ago, when experts were predicting stronger sales. Says Jeffrey Wormstone, spokesman for the Scotch Whisky Association: "To allow the spirits to mature, we have to make whisky so far ahead that now we are stuck with it." The surplus is not likely to be consumed soon. In the U.S., the biggest single Scotch market, the beverage is suffering from an old-fogy image. Many younger drinkers prefer lighter, whiter spirits like vodka and lighter still, white wine.