Monday, February 11, 2013

Maker's Mark Gets Watered Down

Quartz:
Maker’s Mark just got a little less stiff. The bourbon brand, known for its bottles sealed with red wax, told customers today that it’s reducing the amount of alcohol in the beverage in order to meet rising global demand.
Bourbon, which is a form of American whiskey distilled from corn and other grains, has surged in popularity over the past few years. In its largest market, the United States, bourbon now accounts for 35% of all spirit sales as more Americans have developed a taste for high-end whiskey, which is typically aged in charred white oak barrels for six years or longer. In the 1960s and 1970s, Maker’s Mark was famously sold with the slogan, “It tastes expensive…and is.”
But international growth is what’s driving demand for bourbon makers like Beam Inc., which produces Maker’s Mark as well as Jim Beam, a cheaper and more popular bourbon. Beam executives earlier this month said Australia, Germany, and Japan were strong markets. Last year, the company warned it didn’t have enough supply to keep up with bourbon demand.
In an email today to loyal customers, Beam executives said the company had decided that the only way to keep up with demand was to make its bourbon less strong, stretching the current supply. ”We’ve worked carefully to reduce the alcohol by volume (ABV) by just 3%,” the email said.
I’ve reached out to Beam to clarify whether the alcohol is being reduced by 3%, as the email says, or three percentage points, which would be more dramatic. The footer of today’s email suggests it’s the latter, describing Maker’s Mark as a 42% ABV beverage, which is also known as 84 proof; it was previously distilled to 45% ABV, or 90 proof. That would be a 6.7% reduction in the amount of alcohol.
One thing to remember is that most bourbon is watered down after aging to get to the final bottling proof.  Maker's Mark is watering their bourbon down because they didn't know three or four years ago that demand would be so high today, so they are trying to get the supply they have to last longer.  I wouldn't think this would hurt Maker's Mark much, but people are funny, so I wouldn't rule out some folks switching to some other brand.  Note to drinkers who don't drink Maker's Mark straight, add a little less ice.

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