I think the answer to Larry's question regarding Smith's failure to learn from the example of Scotch whisky relates to timing. Apparently, at least according to A Brief History of Scotch Whisky, the market for Scotch whisky was relatively late in coming.

In 1823 the Excise Act was passed, which sanctioned the distilling of whisky in return for a license fee of £10, and a set payment per gallon of proof spirit. Smuggling died out almost completely over the next ten years and, in fact, a great many of the present day distilleries stand on sites used by smugglers of old.

The Excise Act laid the foundations for the Scotch Whisky industry, as we know it today. However, two further developments put Scotch Whisky on firmly on the world map.

Glass of whisky. Until now, we have been talking about what we now know as Malt Whisky. But, in 1831 Aeneas Coffey invented the Coffey or Patent Still, which enabled a continuous process of distillation to take place. This led to the production of Grain Whisky, a different, less intense spirit than the Malt Whisky produced in the distinctive copper pot stills. The lighter flavored Grain Whisky, when blended with the more fiery malts, extended the appeal of Scotch Whisky to a considerably wider market.

The second major helping hand came unwittingly from France. By the 1880s, the phylloxera beetle had devastated the vineyards of France, and within a few years, wine and brandy had virtually disappeared from cellars everywhere. The Scots were quick to take advantage of the calamity, and by the time the French industry recovered, Scotch Whisky had replaced brandy as the preferred spirit of choice.

Since then Scotch Whisky has gone from strength to strength. It has survived Prohibition, wars and revolutions, economic depressions and recessions, to maintain its position today as the international spirit of choice, extending to more than 200 countries throughout the world.