Maker's Mark Reverses Decision to Water Down Bourbon

[buffdaddy]

http://eater.com/archives/2013/02/19/makers-mark-reverses-decision-to-water-down-bourbon.php

Last week's bourbon nightmare has come to an end: Maker's Mark has decided to keep the liquor's alcohol volume at the original level of 45 percent (90 proof). The company had announced it would lower the alcohol volume to a mere 42 percent in order to keep up with demand, but the AP reports they reversed the decision after customers protested (complained on Twitter and Facebook). In a statement posted to Facebook, Marker's Mark said the decision was reversed because "While we thought we were doing what's right, this is your brand – and you told us in large numbers to change our decision." The people have spoken. Or it was a marketing stunt, either way.

 

[Randy]

New Coke syndrome - don't fix it if it ain't broke...

- Randy

 

[djh]

Yay!

 

[Jimmy James]

A marketing exec friend of mine sent me a really fascinating analysis of the situation. In essence, in order to do what Beam wants with this brand, they needed more bourbon at the same price. Raise the price to deal with the demand growth, and bars may go elsewhere. Have inadequate supply, and bars may go elsewhere. My guess is where it is legal and can easily be worked out, they'll simply divert more stocks to bars and less to liquor stores. That approach doesn't work in Virginia where everybody goes through ABC, but it should work other places.

Maker's is apparently a brand they work hard to keep available in the bars to help with pushing their newer products (Knob Creek among them) being sampled and used by the bars.

 

[manimal]

A marketing exec friend of mine sent me a really fascinating analysis of the situation. In essence, in order to do what Beam wants with this brand, they needed more bourbon at the same price. Raise the price to deal with the demand growth, and bars may go elsewhere. Have inadequate supply, and bars may go elsewhere. My guess is where it is legal and can easily be worked out, they'll simply divert more stocks to bars and less to liquor stores. That approach doesn't work in Virginia where everybody goes through ABC, but it should work other places.

Maker's is apparently a brand they work hard to keep available in the bars to help with pushing their newer products (Knob Creek among them) being sampled and used by the bars.

I think it would be pretty difficult to control where there the product goes once it gets shipped to a distributor in a state. I think most states don't allow manufacturers any control at all over that. Manufacturers have to sell to state licensed wholesale distributors and the distributors make their own decisions about which retail outlets (bars, liquor stores, restaurants, etc...) that they sell to. Manufacturers might influence sales to retailers but not have any real control. I'd also "guess" that they sell a lot more bottles at liquor stores than they do to bars but I don't know if that kind of info is even available.

 

[Toothpick]

not sure if anyone has read but they changed their minds. they are leaving the recipe alone. Thanks in part to social media and everyone in an outrage over it. so they listened to the consumers and made a statement that they are not going to touch the recipe.

 

[manimal]

not sure if anyone has read but they changed their minds. they are leaving the recipe alone. Thanks in part to social media and everyone in an outrage over it. so they listened to the consumers and made a statement that they are not going to touch the recipe.

They already changed the recipe and there are already bottles in some stores at the lower proof. They are going to change back to the higher proof. I don't think there is any info out there on how many batches were cut and bottles were filled with the lower proof. It's going to be up to consumers to check bottles before they buy to see what they're getting for quite some time. I'm not sure if it's even clear if they immediately stopped cutting to lower proof or if they "will" go back to the higher proof after some future batch.

 

[ReAndyMator]

Two or three other whisky suppliers were about to change the strength of their US spirits - mostly dropping from 43% (86 proof) to 40% (80 proof) - but without the publicity that MM put behind it.

A couple of quick calls yesterday afternoon confirmed that all of them have reversed their current plans following MM's reversal.....

 

[Go West Young Man]

The difference in water was, I've read , the equivalent of letting an extra ice cube sit in your drink for a couple minutes. So in fact this was a victory of kneejerk reactionism over facts.

 

[Samurai-5]

Two or three other whisky suppliers were about to change the strength of their US spirits - mostly dropping from 43% (86 proof) to 40% (80 proof) - but without the publicity that MM put behind it.

A couple of quick calls yesterday afternoon confirmed that all of them have reversed their current plans following MM's reversal.....

Just curious, but can you tell us who?

 

[DerekL]

New Coke syndrome - don't fix it if it ain't broke...

And after the furor dies down, go ahead and change anyhow.

 

[SteveWY]

When I first heard the news story I couldn't believe MM would even think about that strategy. Really? That fails at every level. You stay with the product that got you there. If supply outstrips demand you adjust your price. Heck, you could even market as a special batch or something.

 

[Jimmy James]

If they raise the price too much, they create an opening in the market for a competitor. That apparently was their fear.

 

[BubblesTGB]

Very pleased that they reversed their position on this. Also - interesting how customers can influence big business now in a way that would have never been possible as little as 5 years ago thanks to social media.

 

[ReAndyMator]

Just curious, but can you tell us who?

I could, but I'd have to kill you....

Generally (Makers Mark excepted) these decisions are being worked out under the radar. I asked friends who do packaging work, and people at a couple of the biggies (I can mention Diageo and Pernod - they're big enough that there are enough pack-techs to avoid anyone being identified) confirmed that they'd been developing new cartons/labels (etc) at 40%, rather than 43%, and that in each case they'd since been told to drop the developments by the brands teams....

 

[Jimmy James]

It's not too shocking given the boom in bourbon/Tennessee whiskey at the moment. I just hope the inevitable bust when people rediscover vodka, rum, or gin isn't too brutal to these companies.

I'd suggest taking refuge in Canadian whisky. I've been loving the very inexpensive for its quality Canadian Mist.

 

[manimal]

It's not too shocking given the boom in bourbon/Tennessee whiskey at the moment. I just hope the inevitable bust when people rediscover vodka, rum, or gin isn't too brutal to these companies.

I wouldn't be overly concerned about that: Beam products

 

[Nick Danger]

They already changed the recipe and there are already bottles in some stores at the lower proof.

I got an email today from Binny's, the popular liquor store chain here in Chicago, pushing the idea that the 84 proof Maker's Mark would be a "collector's item" and that we should rush into the store and buy some.

I'll pass, thanks.

Nick

 

[Jimmy James]

I wouldn't be overly concerned about that: Beam products

I don't so much mean to corporate products as to the people in Tennessee and Kentucky who are actually involved in the production.

 

[manimal]

I don't so much mean to corporate products as to the people in Tennessee and Kentucky who are actually involved in the production.

With the amount of automation these days, I'm not sure that booms/busts (which have always been part of the business) have as much of an effect on the workforce as they used to. It seems like at least every other episode of WhiskyCast that I listen to has a master distiller or master blender at a bourbon or scotch producer saying they only have 6-12 employees running the whole place when they used to need dozens to get everything done. Many of the bourbon brands out there these days don't even make bourbon. They buy it from one of the big boys and put their own label on it. Consolidation is probably a bigger deal than booms/busts. It's not uncommon for big company to buy a bourbon brand, shut down the distillery and start making the bourbon for it at one of it's big distilleries.