Pure vanilla extract is made by soaking vanilla beans in a solution of ethyl alcohol and water. This solution extracts the vanilla flavor, leaving you with a concoction that makes all baked goods taste better. It's as simple as that - we know what all of those ingredients are, and yes there is an alcohol content to vanilla extract. But no, you won't get tipsy off these peanut butter balls. One teaspoon of vanilla extract doesn't quite have that power. Imitation vanilla, on the other hand, is crafted in a far less natural way. Made with a slew of natural and artificial flavors, that are often chemically derived, imitation vanilla has more of a bitter aftertaste than pure vanilla extract.