Dive summary:
- After an announcement in Feb. from Maker's Mark that it will begin watering down it's product and lower the proof due to shortage in raw materials, sales for the bourbon rose 44% in the first quarter.
- Usually, when a company makes an unpopular announcement, customers boycott the product, but Maker's Mark lovers started hoarding the bourbon in anticipation of a inferior product.
- After a social outcry on social media, Maker's Mark announced a week later on their Facebook page that they had chosen to reverse the decision due to the public's dissatisfaction.
From the article:
"Companies of course tend to crow about product reformulations, but that is often the case when they improve the formulation, not diminish it. However, when it comes to marketing, scare tactics seem to work. The public relations fiasco turned out to be a boon for Maker’s Mark, offsetting some decline in parent Jim Beam other spirits."
