Why Is Baileys So Expensive? (11 Reasons Why)

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Maisie Hughes

Maisie Hughes is a 20-year veteran of the culinary world. She has worked as a chef in some of the most prestigious restaurants in the country, and she currently volunteers her time at local food banks.

A liqueur is a unique type of alcohol that contains various ingredients, often used as an ingredient in mixed drinks. Notably, one of the world’s most popular types of liqueur is Baileys.

If you have wanted to try Baileys, you may have wondered why Baileys is so expensive. I did some digging, and here is what I discovered!

Why Is Baileys So Expensive?

Baileys is expensive because it is a huge brand name, which means people are willing to pay for Baileys despite the price. Baileys is costly because it factors in the cost of taxes, transportation, ingredients, bottling, etc., into each bottle. Plus, Baileys charges more since it must pay employees and make a profit.

Do you want to learn more about what impacts the cost of Baileys? I made a list of factors below, so keep reading!

1. The Brand Name

Typically, the brand name of a product or service can influence the costs, which is one of the reasons why Baileys can be expensive.

People are more likely to pay more for things when they know the brand name, which is why popular brands are often pricy.

Generally, a brand name can offer credibility, which can assure the customers that what they are paying for is worth it.

For instance, Baileys is one of the most popular brand names for Irish cream liqueur, and most people will buy Baileys since they believe it will be good compared to other unknown brands.

2. Taxes

Another primary reason alcoholic beverages like Baileys become more expensive is because of taxes.

For example, alcohols and liqueurs like Baileys are subject to excise and sales taxes since the government will require all alcohol to be taxed.

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Normally, the excise tax is already included in the total price of Baileys. So if you see the price of Baileys go up, it is likely due to additional excise taxes.

On the other hand, sales tax tends to be added after the purchase, so your bill might suddenly be more expensive when you pay for Baileys.

3. Packaging

Typically, every bottle of Baileys features a label with the signature Baileys logo on it along with other details, such as the type of Baileys it is.

Usually, the costs and labor for packaging can eventually be a lot of money, especially since Baileys sells over seven million bottles each year.

Therefore, Baileys has to include the price of packaging into its products to offset the costs. That way, Baileys will avoid making a loss through packaging.

4. Bottling

Every time you buy Irish cream liqueur from Baileys, the drink will come in a glass bottle with a sealed cap to ensure freshness.

Bottling is one of Baileys’ most critical processes since bottles house the liqueur.

Therefore, Baileys cannot skimp on the costs of bottles and labor to bottle the products, so it will factor the costs of bottling into each bottle of Baileys.

5. Transportation

According to most sources, Baileys is only produced and bottled in Ireland, but you can buy Baileys in 180 countries around the world.

Therefore, Baileys will have to spend money to have the Irish cream liqueur exported to various countries.

Typically, the cost of gas and other transportation means has been rising, which can make Baileys more expensive.

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Moreover, the cost of shipping products worldwide can be expensive due to import and export taxes, which can make Baileys liqueur costly if you are not in Ireland.

6. Irish Whiskey

Irish Whiskey

One of the main ingredients in Baileys Irish cream liqueur is Irish whiskey, which is necessary to give Baileys its alcoholic content.

Usually, adding Irish whiskey is a reason why Baileys is expensive, so Baileys has to price the products accordingly.

7. Employees

Baileys requires employees to make, transport, and sell its products, meaning it has to earn enough money through its products to pay the employees.

Currently, the exact number of employees that Baileys has is unknown, but it is safe to assume that Baileys has thousands of employees to support this global brand.

8. Profits

Generally, every business needs to earn profits because a company cannot keep breaking even.

Therefore, businesses need to mark up their products accordingly to earn more money, which is how Baileys can be expensive.

For instance, let’s say that it only costs $10 to make Baileys Irish cream liqueur, but Baileys will have to make it more expensive to add labor costs, transportation, and a profit.

9. Popularity

Generally, Baileys Irish cream is the most popular brand for Irish cream liqueur around the world, making Baileys very popular.

Whenever a brand is famous, this gives the brand leeway to increase its prices since people will prefer popular brands.

Also, anything that is popular will be in high demand, which means the brand will have to charge more to keep up with the demand.

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10. Better Quality

While this is debatable amongst enthusiasts, Baileys is said to be one of the brands of Irish cream liqueur.

That said, this is likely due to how Baileys is made and what ingredients Baileys uses, making Baileys a good quality liqueur.

Therefore, anything that is seen as better quality can be more expensive since products like Baileys will have more value.

11. Better Ingredients

Typically, any type of alcoholic drink that has better ingredients is seen to have fewer impurities, which can significantly affect the cost.

For instance, Baileys is made from high-quality ingredients that allow it to charge more for its liqueur.

Notably, Bailey’s uses vanilla extract and cocoa beans harvested from West Africa that is then processed in France, which is an expensive process.

Moreover, it said that Baileys uses more than 250 million liters of milk each year from 40,000 dairy cows, giving Baileys more reason to increase its prices.

To learn more, you can also read our posts on why Scotch is so expensive, why Red Bull is so expensive, and why milk is so expensive.

Conclusion

Baileys is expensive because it is a business that needs to make a profit while paying for the employees, ingredients, labor, etc.

Additionally, Baileys is the most popular brand for Irish cream liqueur, and many people are willing to pay for Baileys.

Author

  • Maisie Hughes is a 20-year veteran of the culinary world. She has worked as a chef in some of the most prestigious restaurants in the country, and she currently volunteers her time at local food banks.

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