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The rise of cream liqueurs
Thanks to drinkers indulging at home, and the popularity of Baby Guinness and Espresso Martini serves, cream liqueurs are on the up.
*This feature was originally published in the November 2024 issue of The Spirits Business magazine.
This year marks the 50th anniversary of the launch of Baileys Irish Cream, which is still growing in its biggest market – the UK.
“Several factors are driving this growth, both from a consumer and brand perspective,” says Hazan Aydın Yeşilova, head of Baileys, Diageo GB. “Consumers view Baileys as a treat, and, as we know, treating has evolved, becoming a regular ritual rather than a rare event.” To meet demand, the company is building a £26 million (US$33.7m) extension to its global supply facility in Mallusk, County Antrim.
“For the general cream liqueurs space, more brands are investing in the category, soft sippers are becoming more attractive, and more consumers are opting for lower ABV,” says Aydın Yeşilova. In the UK on‐trade where overall spirits sales fell by 4.6% by value last year, cream liqueurs was the only subcategory to buck the trend, growing by an impressive 29.8%, according to CGA, which claims it is “largely because of short serves like Baby Guinness” – a shot of coffee liqueur topped with Irish cream that looks like a tiny stout.
The cocktail, allegedly invented by a now‐defunct Dublin bar in the 1980s, has recently gone viral on social media. “There are 41,000 searches a month for baby G or baby stout,” claims Craig van Niekerk, global vice‐president for rum‐based liqueur Malibu and coffee liqueur Kahlúa at Pernod Ricard. Despite his reticence in mentioning Guinness by name, his brand has benefitted far more than its arch‐rival – Baileys. That is if you go for the typical 3:1 serve of coffee liqueur to Irish cream, and while you can obviously use alternatives like Tia Maria for the coffee part, Kahlúa appears to be the preferred choice.
Last year the brand was given a packaging and marketing reboot in with its lively new ‘Stir Up’ campaign featuring Mexican‐born actress Salma Hayek. It also seems to have benefitted, like the rest of the category, from the pandemic. “Covid was a key accelerator for cream liqueurs,” says van Niekerk. “Consumption behaviour has been changing for some time, and in the US we’ve been looking at a phenomenon called ‘social isolation’, where, on average, people are spending 70 minutes a week less with other people than they were before [the pandemic]. That move to drinks at home in a more intimate setting and much more low energy favours spirits like cream liqueurs.”
He adds: “Another piece around Covid was people wanting to learn to cook more.” He points to the culinary connections mentioned on social media, some of which are of dubious taste. “If you look at what people are doing with Kahlúa, it’s anything from putting it on blue cheese to putting it with orange juice so it tastes like a Tootsie Roll in the US.”
Matthew Benny, chief commercial officer, the Americas, at business‐to‐business cream liqueur maker Creamy Creation, says: “We’re now starting to see some diversification, with different formats like ready‐to‐drink and ready‐to‐serve.” As for the 30% jump in the UK on‐trade, he feels “that’s a little bit higher than what we’re seeing across the board, but I do think on‐premise has a lot of room to grow if you think of ‘creams’ being traditionally more off‐premise”. He also believes premiumisation has been driving growth. “Cream liqueurs innately have premium quality, indulgence, thick mouthfeel,” he says. “And the low ABV, compared with some other products, plays a role where people don’t feel quite as guilty.”
The strength is constrained by the production process. “The higher you go in ABV, the less stable the product is,” he explains. “We can get products up to about 20% ABV depending on the formulation.” Some of the company’s trade customers prefer a high strength, but others are exploring the lower end of the spectrum at around 12.5% ABV. “Some people want to go even lower, down to 5%‐6%, and usually that’s with an RTD [ready‐to‐drink], where they’re looking to disrupt the market a bit,” says Benny. “Low‐ABV cream products are extremely difficult to do because you need heat treatment to keep them stable, but we’re very aware of this space because it’s becoming popular.”
The upper limit on alcohol was news to Daniel Szor, founder of English spirits producer Cotswolds Distillery, who had hoped his cream liqueur could have been stronger when launched in 2015. But at 17% ABV “it just caught on, and has become a bigger part of what we do than I would ever have expected”, he says, adding that another revelation was the base spirit. “I hadn’t realised at the time that whisky has nothing to do with most cream liqueurs, it’s just neutral grain spirit.” Needless to say, Cotswolds Cream Liqueur uses its own English single malt.
The best‐known whisky liqueur is clearly Drambuie, which uses its full‐strength 40% ABV as a point of difference. The brand has just launched its ‘Dramb‐OOO‐uie’ campaign, its first global activation since 2012, to promote its new iced espresso serve. The move into coffee is an obvious one, given the current craze for Espresso Martinis. “If anything, it’s now getting more cemented as one of the top 10 global cocktails, so, for sure, we see it as a long‐term trend,” says van Niekerk at Pernod Ricard.
He claims the cocktail attracted 932,000 searches online in the past 12 months. “That’s up 26% on the year before, so the Espresso Martini is definitely having a moment,” he says. He says interest hasn’t peaked because “it is not yet mature in all markets”, and because so many spirits brands are piling in. “It’s almost a self‐fulfilling prophecy,” he says. “It’s popular, so a lot of people get into it, so it becomes even more popular.” This is backed up by Creamy Creation where apparently 40% of new enquiries are about Espresso Martinis, and this clearly helps fuel the boom in the cream version of the cocktail.
Another trend mentioned by Creamy Creation’s Benny is for slightly less sweet cream liqueurs, though “it does obviously depend geographically”, he says. “In Latin America the product needs to be substantially sweeter.”
For van Niekerk the category is about “permissible guilty pleasures. Generally speaking, you’re not having multiple cream liqueurs in one sitting. You’d enjoy one or two, like eating chocolates. On a surface level you would say the most obvious thing is to have a light version. But when you see the performance of ‘light cream liqueurs’, the performance is not there.”
This makes sense if you think of the analogy with chocolate, which is meant to be a ‘guilty pleasure’. This hasn’t stopped the market leader from producing its Baileys Deliciously Light – one of 11 extensions supporting the mother brand, alongside an extensive range of chocolates and two cakes listed on the Baileys website.
Van Niekerk studies his main rival’s new product development with keen interest. “For me it does three things,” he says. “It creates commercial opportunity. It reinforces its position as a liquid dessert, and it appeals to a younger audience.” But for all the new expressions, he claims that Bailey’s Original accounts for more than 90% of sales in the UK. Too much innovation can be a distraction in his view, and he insists: “At Kahlúa, we don’t want to go down the route of flavour proliferation.”
Plant-based
Amarula Cream, which is celebrating its indigenous African fruit in its ‘Real Marula’ campaign, launched Amarula Vegan in 2021, joining other brands, like 100% dairy‐free, vegan‐friendly Baileys Almande. It’s a market that Creamy Creation has been studying carefully. “Our initial thought was there are consumers out there choosing milk alternatives for their cereal and everyday use, and that should translate across to cream liqueurs,” says Matthew Benny, chief commercial officer, the Americas. “But right now it’s still waiting for its time.”
Chris Buglisi, co‐founder of the Misunderstood Whisky Co, is out to change that with his newly released Outrageous brand in the US. “We partnered with Creamy Creation, one of the only companies in the world to have figured out how to emulsify oats with liquor,” he explains, clearly excited at the potential of giving oat‐milk drinkers a liqueur of their own. He describes oat milk as “a growing US$30 billion‐plus industry”, and says “there’s such a wide spectrum of consumers, from someone who’s been dairy‐free for two weeks to someone who’s a passionate, long‐term vegan who will not touch anything animal‐related”.
Oatrageous is currently available in physical stores in five states, and in 45 online.
There may soon be some serious competition. “It’s an interesting space in that no‐one has yet proven scale there,” says Craig van Niekerk, global vice‐president of Malibu and Kahlúa at Pernod Ricard. “I feel it’s better to think not as a spirit brand, but as a non‐dairy specialist. I’d ask how would Oatley do it, not how Baileys would do it. If you think that Oatley has been able to take roughly 10% of dairy business in the US, it’s not a fad. So, it’s right to experiment up‐front, early.
“It’s about understanding the nuances in the plant‐based space, and asking whether you can deliver products that authentically meet the needs of the consumer, and not just jumping on because plant‐based is popular.” That said, a dairy‐free Kahlúa may be just around the corner. Watch this space.
Zamora Company weighs in on liqueurs
Blanca de la Infiesta, global spirits marketing director at Zamora Company, discusses the latest liqueur trends and how its Licor 43 brand is meeting demand for vegan options.
What current trends is Zamora Company seeing in terms of flavours, alcohol levels, and sweetness and in cocktails and drinking occasions?
“One of the key benefits of our main product, Licor 43 Original, is its versatility, which results in a wide variety of serves. For example, in the Netherlands, they drink it mainly neat, in Germany they mix it with milk, in Spain consumers mix it with many different ingredients: soft drinks, chocolate, pineapple juice… and in Latin America and the US, they mix it mainly with coffee.
“This is where we find another key cocktail trend integral to our liqueur – the Carajillo. It been named by many publications as one of the main cocktail trends for 2024 and we have been well ahead of this curve. It’s simple to prepare, but totally delicious and works wherever coffee is popular.
“We also follow the trends that are relevant to us as a brand and one of these is ‘treats and desserts’ which we’ve seen gaining traction in the liqueurs category. In 2021, we first launched Licor 43 Chocolate and then in September 2023 we brought out Licor 43 Crème Brûlée. Our big bet here was on flavours that would find their home globally, rather than local or regional flavours. Key also is that both of these cream liqueurs have an ABV of 16%.”
How is the brand responding to these trends?
“At Zamora Company, we put the consumer at the heart of everything we do – this is how we maintain the interest of our current customers, and also attract new ones. Our policy of watching the trends is obviously working as we became a million-case brand for the first time in 2022.
“Our product has maintained its original secret recipe since 1946. The great quality and delicious flavour of Licor 43 continue to win over palates year after year.
“But we have launched a range of new products under the brand to cater to current consumer preferences and follow the latest trends, like ‘indulgence’ or the rise of vegan options. For instance, Licor 43 Horchata, a fusion of Licor 43 and Valencia horchata, is 100% vegan. Licor 43 Chocolate is made with high-quality selected cocoa and our latest limited edition, Licor 43 Crème Brûlée.
“Launching these types of innovations is one of our ways to adapt to modern times while maintaining the essence of our brand and responding to the demands of today’s market.”
Which demographics/ key markets are you focusing on?
“Licor 43 is the best-selling Spanish premium liqueur in the world. It is currently available in more than 80 countries, with the majority of its sales (over 90%) coming from outside our borders. Key markets are Spain, of course, but also the Netherlands and Germany in Europe, and Mexico, Brazil and the US further afield.”
Cream liqueurs seems to be booming (up 29% in UK on-trade). Tell us all about the crème caramel variant.
“Licor 43 Crème Brûlée is the latest product in the Licor 43 portfolio and is a fusion of Licor 43 and the flavours of one of the most recognised desserts in the world, taking pride of place for after-meal indulgence. Traditionally, crème brûlée includes some vanilla essence and this is one of our 43 signature ingredients, so we knew we could have a perfect match. Licor 43 has long played a key role in the after-meal occasions with family and friends and the success of Licor 43 Chocolate showed us scope for further creamy fusions. Here, we added a dash of salted caramel for a modern twist to the traditional recipe, and this makes it even more delicious served over ice.”
And finally on plant-based… a few words on Horchata.
“Before Licor 43 Chocolate and Licor 43 Crème Brûlée, Licor 43 Horchata was the first ‘cream liqueur’ innovation of Licor 43, despite not being an actual cream (it contains no cream/milk). It is a fusion of Licor 43 Original and the Spanish horchata drink from Valencia. The horchata is the iconic, national drink based on a traditional recipe from Valencia which blends the ‘milk’ of tiger nuts (a crop originally from ancient Egypt and brought to Spain by the Arabs), with sugar and sometimes flavoured with cinnamon and citrus.
“The result of this fusion is a deliciously light, silky liqueur with a distinctive flavour, which is really quite different from any other cream liqueur. Licor 43 Horchata offers also a new delicious, vegan and dairy-free option for vegan consumers who normally can’t have ‘cream’ liqueurs.”
How do you position your liqueur in the market in terms of pricing and audience?
Alex Christou – founder, Glenrinnes Distillery
“We take a number of things into consideration. For example, for Eight Lands limited edition Sloe Gin, the primary audience is really defined by the wide association of such products with autumn/winter, and the British countryside. However, by demonstrating that it can also be used in cocktails, we have also found interest in urban bars and hotels, as well as internationally. As a result, we are having to look at controlling allocation, due to it being a small‐batch release. The pricing is reflective of Eight Lands’ super‐premium positioning, and also that it is our most expensive product to produce, while being available only in limited numbers each autumn.”
Matteo Luxardo – export director, Luxardo
“Luxardo positions its liqueurs as premium, high‐quality products, with a strong emphasis on heritage, craftsmanship, and authenticity. The brand caters to a broad audience, ranging from professional bartenders and cocktail enthusiasts to casual drinkers and those who appreciate classic Italian liqueurs. While Luxardo is a premium brand, its products are not so prohibitively priced that they are inaccessible to the average consumer. This positions the brand well within both the craft cocktail movement and for home use.
Lena Rusek – senior marketing manager, Bardinet
“Bardinet is a very accessible brand, top quality with a powerful flavour profile, made in Dijon, and very accessible in price. To better share its vibrant flavours and aromatic power with all who enjoy mixing drinks, Bardinet is enhancing the ranges’ packaging. The new look will celebrate Bardinet’s French craftsmanship and expertise, showcase the quality of the products’ tastes and bring a more contemporary feel. Our wide range of high‐quality liqueurs and syrups have made Bardinet a mixologist’s favourite for generations. By updating our packaging for a more contemporary look, we are shining a spotlight on their exceptional quality and aromatic flavours – proudly crafted in France for about 170 years.”
Godelief van Erve – global marketing director, De Kuyper
“We have different propositions for different target groups (consumers) and different segments (on‐premise), for instance more mainstream (Peachtree, Archers), versus more premium (Heering, Mandarine Napoléon); this is also reflected in the price positioning. There is also a difference between channels; some are more consumer‐faced brands, while other of our brands are really bartender‐brands (e.g. Heering, Dutch cacao, Acqua Bianca, Muyu).”
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