Family ties: Does Scotch whisky have a nepotism problem?
Image: Pixabay / manfredrichter
From the existence of whisky dynasties to eye-raisingly unfair hiring dynamics, is the practice of favouring relations another inequality that shows up in Scotch? Here’s why keeping it in the family can leave a bad taste.
Nepo babies. The term first appeared in 2020 on the blog ‘Pop Culture Died in 2009’, according to Nate Jones of Vulture. Short for ‘nepotism baby’, it initially referred to celebrity offspring that follow in their parents’ footsteps. Success comes especially easily to those able to access connections and opportunities through family connections, the phrase suggests. Miley Cyrus, Zoe Kravitz and Kaia Gerber, anyone?
Nepotism, essentially favouritism due to a family connection, doesn’t just show up among the A-list. It’s a problem across business – and wider society. There’s a case to be made that keeping opportunities close, on a macro level, prevents meaningful resource distribution. It entrenches generational wealth. It’s bad for the economy generally. It keeps all kinds of inequalities entrenched.
Closer to home, it can result in difficult working environments, reduced morale, and increased staff turnover, according to Vantage Circle. Despite this, nepotism is not illegal under UK law, and employees can’t raise it during an employment tribunal.
It’s pretty obvious that despite the harm it causes, nepotism can advantage the family at the top of the tree. But it is important to note that nepotism and hiring a family member are not inherently the same thing. Key differences? If a person is legit qualified for the role, and there is no power imbalance or negative impact on the rest of the team as a result. There are, of course, many examples of grown-up children entering the same industry as their parents who have the skills, talent and experience to have got there on merit.
What’s this got to do with Scotch?
The Scotch industry has undoubtedly seen immense consolidation over the past few decades. So much so that family-run distilleries are actually pretty few and far between. Even with the more recent craft distilling boom, many newer makers are owned and managed by teams of directors and investors. There are family-run producers, but they remain a tiny proportion in the overall landscape.
Independent bottlers are much more likely to be owned by families, and indeed family-run businesses crop up right across the Scotch landscape. As they do in any industry. Yet, when I posed the topic just to my own little network on Instagram, it became clear that nepotism is sadly alive and well in Scotch.
“Half the senior management where I work are part of the owner’s family,” one person told me on condition of anonymity. This wouldn’t be a problem if team leaders were appropriately qualified. But this person speaks of mistakes being made that “seriously impede” productivity.
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Multiple people, from businesses across Scotch, raised the issue of internships. For some, the concept didn’t exist until a senior manager’s child wanted one. (Not just nepotism but a real example of how those who can afford to work for free, or very little, get a substantial leg up when it comes to careers.) Others reported a feeling of expectation that a parent’s position in the industry will magically open doors when it comes to jobs, mentorships and internships. Even for the underqualified.
Then there’s aspects of negative team culture that have come up. Both in structured reviews and when giving more informal feedback, multiple people said they don’t feel like they can be transparent for fear of it “getting back to the top”. It doesn’t take much to see how morale could be seriously affected.
“I’m not sure it’s something they are conscious of,” one person commented. And perhaps that’s part of the problem. If you are part of the family holding the power, it’s difficult to see the perspectives of those outside the your unit.
Are family businesses inherently good?
There’s a certain romance surrounding family businesses. And data has shown that in some cases they operate with a greater sense of purpose. According to ADR UK, there are 4.8 million family businesses in the UK. Between them, they account for 13.9m jobs, and make up 85% of private sector businesses. They are a vital part of the economy. And they are clearly not all structurally unsound set-ups run on nepotism. But it does pose the question – are family businesses inherently good? And should we celebrate when grown-up children seemingly automatically get an easy ride in the same industry as a parent?
Ultimately it comes down to values. From conversations I’ve had this month, my conclusion is that there are very many great people-driven businesses in Scotch, regardless of ownership structure. But nepotism is a conversation that simply isn’t being had. Businesses of all sizes need to take a step back and look at who is being hired and why. Who is getting preferential treatment and why. Because, intentionally or not, it is happening within whisky. And if we really want to see a more equitable industry, it’s critical that we examine every case of structural unfairness. Including nepotism.
