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Baileys launches alcoholic iced coffee RTDs

Diageo’s Irish cream liqueur brand Baileys is to launch a ready-to-drink iced coffee duo to tap into consumer demand for the fast-growing drink category in the off-trade.

Baileys is to launch an Iced Coffee line

Baileys Iced Coffee will be launched in two variants: Latte and Mocha. Both are described as a fusion of Robusta iced coffee with real milk and an undisclosed spirit. The Mocha expression is also made with real cocoa.

The iced coffee is available at 4% abv, presented in a 200ml can format.

According to Nielsen figures, iced coffee value sales in Great Britain have grown by 44% in the past two years, with half of all products purchased in the convenience channel.

Baileys says the launch will help retailers “take advantage” of the trend, which is projected to generate further double –digit growth by 2020.

In addition the brand is hoping the launch will enable the off-trade to capitalise on the trend for “alternative coffee options”. According to Baileys, Latte and Mocha variants account for 75% of all coffee volumes in the market.

The Baileys Iced Coffee launch will be supported by a “six-figure” marketing investment focusing on digital, social and other media. The brand will become the lead sponsor of TV show Made in Chelsea for three seasons from 20 March. Promotions will also run in cinemas and online, and the brand will host “strategic” sampling activities across the UK.

“The popularity of coffee continues to grow, with over 18 billion cups consumed in GB each year [Kantar World Panel],” said Sam Salameh, Baileys marketing manager, Europe.

“As we continue to see how successfully Baileys works alongside coffee, and in serves such as the popular Flat White Martini, we see the launch of the new Iced Coffee variants as a natural progression for the brand.

“The product will allow consumers to enjoy a mini moment of indulgence during casual get-togethers with friends, both in and out of home, while offering a significant profit opportunity for retailers.”

Baileys Iced Coffee will be available to order for convenience, independent, wholesale and trade channels from March 2017.

Each 200ml can carries an RSP of £1.90 (US$2.30) and will be sold in cases of 12.

The Baileys Iced Coffee RTD launch is the latest of a string of innovations from the Irish cream liqueur brand. In the past year it has released a dairy-free, gluten-free Almande expression, and Cognac hybrid Baileys XC.

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