How Baileys Treated Itself to a Big Bite of Chocolate!

The story of Baileys’ creation 50 years ago is the very definition of innovation. Some of the finest minds in the marketing and drinks industries came together in the early 1970s with the brief to develop a new concept – an Irish cream liqueur. It took two years of trial and error but by 1974, they had added the right mix of spirits, rich chocolate and vanilla flavours (with some other flavours and ingredients) along with a little magic, to create the Baileys recipe we now know and love.

It is, arguably, the ultimate drinks industry innovation.

And 10 years ago, it returned to its innovation roots to resurrect brand fortunes after its position as the traditional, iconic after-dinner liqueur became less relevant to drinkers in the late 2000s.

At that point, the Baileys team recognised that what people loved about Baileys was the fact that the liquid was “part booze, part cake”: in other words, the ultimate adult treat. Thus, they moved the brand positioning towards indulgence and the pursuit of pleasure; opening Baileys up to a broad set of indulgence occasions, playing in the category of adult treating, a category far bigger and more versatile than the more traditional liqueurs category.

And the Baileys adult treat strategy super-charged the fortunes of the brand, with the annual growth rate of Baileys global sales increasing fivefold in eight years from 2016 to 2024.

How did they do it? Firstly, through a wonderful swathe of innovation of Limited Edition flavours – from Strawberries & Cream, to Salted Caramel (to name but two), a strategy that has continued recently with Cinnamon Churros, which launched in the US late last year.

And secondly through smart marketing activity that saw Baileys target treat occasions that play up the product’s versatility, showing up not just in cocktails but in desserts, ice creams and coffees. In fact, as Aine Kavanagh, Global Marketing Manager, Baileys describes it: “At Baileys we talk about drizzling delicious across the five Cs: Chocolate, Cake, Coffee, Cocktails and Ice Cream. Baileys is a real adult treat and it is the consumer’s co-conspirator in the pursuit of pleasure across all of these Cs – and more!”

The biggest treating category of all is Chocolate. Aine says: “It makes up 50% of the adult treats category in the US; it is worth $23 billion and it’s always-on in culture.”

Enter: Baileys Chocolate, stage right. In the US it came to market with the following tantalising tagline: “Part molten liquid chocolate: Part Booze: Pure Pleasure. Crafted with real Belgian milk chocolate, Baileys Chocolate is truly the ultimate grown-up treat.”

Unveiled in September 2023 it took the US market by storm, driving over 39 weeks of sustained share growth in the market for the Baileys brand. It stands as one of the biggest and most impactful pieces of innovation in the brand’s history.

The launch was augmented by a partnership with the internet’s reigning “King of Chocolate”, Chef Amaury Guichon – a chocolatier and social media influencer, with over 57 million followers.

For the Baileys Chocolate launch campaign, Amaury crafted an entire bar out of chocolate; inviting lovers of Baileys and lovers of chocolate, to indulge in a delicious chocolate martini [see video].

The subsequent roll out, across Australia and Europe, is seeing similar levels of success.

Baileys Chocolate launched in Great Britain last September and initial sales took off, with the original run of 42,000 cases selling out in less than three months. In Ireland, similarly, the initial Limited Edition sales run was a complete sell-out.

In Australia it has gone from a potential one-time Limited Edition to now having permanent listings across key retailers.

But as much as it is a flavour for all year round, strategically Baileys Chocolate is perfectly targeted at the February to April period – as it hits chocolate-focused gifting occasions like Valentine’s Day, Mother’s Day and Easter, spreading Baileys’ trademark indulgence well beyond Christmas into Spring.

Aine continues: “Innovation can unlock new opportunities for Baileys and pairing a delicious chocolate liquid with those calendar moments that all cry out for chocolate is a perfect opportunity. It is the perfect Valentine’s Day treat, and I would say the grown-up way to enjoy Easter!”

The plans for Easter are significant, with media spend on Baileys Chocolate upweighted on social media as well as planned large scale in-store activation across the US and Europe. This will see everything from Baileys Chocolate gift boxes on shelf, to sampling activity to continue to convince Legal Drinking Age consumers that, perhaps, Baileys Chocolate is the greatest innovation of them all!

See video below