Producers of Maker's Mark Experience Social Media Fail

Last week, Beam Inc. made a decision to lower the potency of their adored bourbon, Maker’s Mark.  The company sent an email stating that due to supply shortages they would solve it by diluting the bourbon. The alcohol by volume (ABV) was supposed to be reduced by 3%. According to the article I read last week and used as a source for my post, the shortage was due to international expansion. It came down between maintaining quality to satisfy American customers or reducing it to sell in international markets. Beam Inc. made the decision to reduce quality to expand. While the decision was definitely a slap in the face to customers, it was understandable considering Beam Inc. “reached out to ambassadors”. It seemed these “ambassadors” were prepared and thought out their decision well.

That was a week ago.

Today, Beam Inc. changed their mind. They’ve been “humbled” and the ABV will not change. According to LAtimes.com’s article “Maker’s Mark producer reverses decision to dilute its bourbon”:

"Maker’s Mark Chairman Emeritus Bill Samuels, the founder’s son, said the company focused almost exclusively on not altering the taste of the bourbon while stretching the available product and didn’t consider the emotional attachment that customers have to the brand and its composition"

This basically means the customer was never considered in their decision to lower the ABV. Reports of “ambassadors” to handle the announcement are a lie or the best evidence of an inadequate marketing team. To be clear, I’m not mad about the decision but the lack of preparation for the obvious backlash. As a company with a well established brand, when changing the brand you have to be extremely well prepared for the reaction. Most importantly, in 2013, in the age of social media, companies have to prepare for social media reaction.

The company’s social media surprise means Beam Inc. is not marketing in 2013. The lessons to take from this fiasco are upgrade the marketing department; clearly people love the brand (why did the company think their drinkers weren’t truly loyal); and work smarter. This is the social media age. If kids can Google “what is social media”, there should be no reason that marketing executives with years of experience and college degree(s) can’t learn to optimize social media for a better marketing strategy.