This garbage really is great for distillers. it gives them a chance to sell their dregs, combined with some neutral grain alcohol and a little flavoring at a massive mark-up. This crap is essentially unregulated (as opposed to bourbon, which is highly regulated) so they can throw whatever the hell they want in there.
I do wonder what the overall impact will be for proper whiskey. It gives these distillers a nice subsidy, a way to make money without necessarily raising prices on proper whiskey, and without using up any extra room in the rickhouse. Then again, it still has to be distilled, so I could see distillers spending more time distilling this crap for the easy profit, and less time making bourbon.
Today's consumer will accept all kinds of garbage. They love paying real prices for vodka which doesn't have to be aged. They don't care that the top bourbon and whiskey brands are all dropping down to 80 proof (in the name of a "smoother profile") without cutting the price. And now, they are lapping up this flavored whiskey stuff while distillers chuckle.