The global drinks firm is pitching a six-figure consumer brief for the liqueur, covering Western Europe.
Ketchum Pleon, incumbent for five years, is understood to have lost the account because of a client conflict and will stop working on the brief at the end of the year.
The news comes after Diageo shook up its strategy around Baileys following poor sales across Western Europe.
The brand has adopted the tagline ‘cream with spirit’ following a rebrand earlier this year aimed at attracting a younger audience by celebrating ‘modern womanhood’.
A Diageo spokeswoman confirmed the move, adding that the list of agencies being invited to participate in the pitch process was closed.
A new agency is expected to be appointed at the end of the month, and will briefly work in tandem with Ketchum Pleon. The agency is to be the strategic lead across Europe and will activate the brand in the UK.
Meanwhile, Diageo has brought in Clarion to undertake a retained trade comms brief for its full range of brands.
Clarion will focus on liaising with the drinks press, replacing Mercieca, which held the account for eight years.
The contract is being led by Clarion board director Shelley Wyatt, who reports to Rebecca Perry, Diageo’s senior corporate relations manager, corporate and trade media, and Roz Nash, senior category development manager.
Perry said that the brief had not changed, with the agency shift ‘a mutual decision between Mercieca and ourselves’.
Earlier this year, incumbent Splendid Communications retained Diageo’s £1m Smirnoff account following a pitch against GolinHarris, Mischief and 3 Monkeys.