The new cream liqueur arrives this month, in time for the Christmas period and is backed by a £2.5m marketing campaign.
Diageo has has planned TV and digital advertising, in-store and event sampling, point of sale and social media marketing.
The new variant is described as an "aromatic blend of Baileys Original Irish Cream and the sweet aroma of the traditional double baked Italian biscuits, biscotti”.
In a statement Diageo said: “Strong consumer research found that 87% of target consumers like the name Biscotti and 62% were very likely to purchase (compared with 57% for Hazelnut Flavour).
“New flavours are a key reason why shoppers buy something new. 60% of last year’s Baileys Hazelnut flavour sales were incremental to the brand; equivalent to £5m added to the creams category.
The abv of Baileys Biscotti is in line with Baileys range, at 17% ABV.
Louise McKerrow, Baileys marketing manager at Diageo GB, said: “Through the launches of each of our unique flavours range we are constantly striving to deliver innovation to the category as well as encourage consumers to enjoy liqueurs outside the Christmas period.
“Our new Baileys Biscotti Flavour is a really exciting addition to the range and it achieved excellent results in our consumer research with the highest purchase intent and frequency of all the flavours launched to date.
“By investing in strong POS and starting our digital and TV campaigns earlier than last year, we hope to increase awareness and trial whilst emphasising the notion that Baileys can be enjoyed all year round.”