In the late 18th century, Clackmannan was the cradle of Scotland's brewing and distilling industries. Located in the shadow of the Ochil Hills, it sat at the boundary between the Stirling plain and the lowlands of Fife; it was close to Scotland's oldest coal mine, importing coal and grain via the Forth from East Lothian. Here was established "the largest manufacturing enterprise in the first decade of the Scottish Industrial Revolution" (Michael Moss) – the Stein family's Kilbagie and Kennetpans distilleries and related industries, such as cooperage, glassworks, and barrel making (all of which still exist). Carsebridge was built by John Bald in 1799, who handed the distillery over to his son Robert. In 1845, the distillery passed to Robert's brother John. It began by producing malt whisky using pot stills, but in 1860 converted to using continuous stills and producing grain whisky. John Bald II (described as "politician Bald") was a pioneer in promoting the common interests of Lowland distilleries. The earliest form was the "One Year Trade Agreement" signed in 1856, with signatories being the owners of Caledonian, Cambus, Carsebridge, Glenochil, Haddington, and Seggie distilleries. In 1865, a second trade agreement extended the term, with Cameronbridge replacing Seggie and Port Dundas replacing Haddington; around the same time, Joker's distillery and Adelphi distillery joined the agreement. All this was merely a prelude to the establishment of D.C.L. in April 1877 (see "Cameronbridge"). Carsebridge was transferred to D.C.L.'s subsidiary S.G.D. in 1966, when it was the group's largest grain distillery, employing 300 people, with 3 Coffey stills and 1 large spent wash recovery equipment. It was closed and demolished in 1983, and now the site is occupied by Diageo's Scottish Spirits Supply Department, which is responsible for all the company's spirits production. It also houses Diageo's main cooperage and wine cellar, the latter containing barrels filled with sherry or other wines.

In the 1870s, Kennethmont Distillery installed Scotland's first steam engine, while Gilbey installed the first steam-powered threshing machine. One of Scotland's earliest railway lines connected the two distilleries, making it easy to transport goods from Gilbey to the Kennethmont pier just a mile away.