The growing popularity of supermarkets' own-label cream liqueurs has been partly blamed for Baileys' 25 per cent sales slide in the year to Aug 11.
By contrast, Baileys Mint Chocolate enjoyed 647 per cent sales growth in the same period.
Sainsbury's marketing & PR manager Kimberley Davenport denied that Sainsbury's was going head-to-head with Diageo's mint variant. She said that the products were different because the Taste the Difference version combines mint with caramel flavours.
Davenport added that it will be sold in a 50cl bottle to differentiate it from Sainsbury's own-label Irish cream liqueur, which is sold in a 1-litre bottle.
Sainsbury's has also added a Polish vodka to its Taste the Difference range. Made from a blend of four vodkas, each from a different Polish grain, it will retail at £12.49 for a 70cl bottle.
Five times distilled Cape North vodka has also joined the Sainsbury's range as a UK exclusive. The single grain vodka was launched in Sweden four years ago and is now the leading ultra-premium brand there, a spokesman said.