In 1896, William’s nephew, Matthew Gloag (1850-1912), took over the family business. He created a new blended brand called The Grouse in 1896. At this time the company was still operating from his grandfather's premises but had expanded to occupy adjacent shops, jointly covering 20 to 26 Atholl Street.
In 1905 the limited company of Matthew Gloag & son was formed and the Grouse was renamed ‘The Famous Grouse’ in the same year due to its burgeoning reputation as a quality Scotch brand. As if to emphasise the family connection, it was Matthew III’s daughter, Phillippa, who drew the very first, and now famous, red grouse that adorns every bottle.