What happens when Maker’s Mark dilutes their bourbon

16 Feb What happens when Maker’s Mark dilutes their bourbon

The makers of Maker’s Mark recently announced to their distributors that they are decreasing the alcohol content of their bourbon from 45% to 42%. It’s clear that the demand for bourbon is skyrocketing, and they believe that watering it down won’t be a noticeable taste difference. It looks more like a knock to their reputation, if you are trying to associate your product as a small-batch, handmade product. Matthew Yglesias in The Economics of Watering Down Maker’s Mark writes:

The issue there is simply that a three percentage point difference in alcohol content clearly will change the taste of a beverage. There’s just no way around it. If you can alter the formula that much without people caring, you’re just saying your customers aren’t really paying attention to the flavor of the drink.