Diageo Ends its 15-Year Partnership With Diddy Following Lawsuit
Diageo, the spirits maker, has terminated its 15-year partnership with Sean “Diddy” Combs, following a recent racial discrimination lawsuit and allegations of neglect and underpromotion of his DeLeón tequila, which he claimed was labeled as an “urban” product in marketing.
Diageo, based in London and known for brands like Smirnoff and Johnnie Walker, countered the lawsuit, stating it was a “baseless complaint” and accusing Diddy of breaching his contracts. The company filed a motion to dismiss the lawsuit.
Diddy accused Diageo of unequal treatment in marketing his spirits, including Ciroc vodka, compared to other brands under the company’s umbrella, such as Don Julio and Casamigos.
Diageo responded by highlighting Diddy’s substantial earnings from the partnership, reaching almost $1 billion.
The partnership between Diageo and Combs began in 2007 with Ciroc vodka. In 2013, Combs acquired DeLeón and established a joint venture with Diageo for the premium tequila.
Diddy’s lawsuit alleged that Diageo intentionally hindered DeLeón’s sales growth, considering it a “Black” brand marketed solely to “urban customers.”
He also claimed a Diageo executive made a disparaging remark comparing him to Martha Stewart. Diageo denied these allegations.
Diageo stated that Diddy had undermined their partnerships, made unreasonable financial demands, and threatened to defame the company publicly. They claimed to have invested over $100 million in the growth of his tequila, while Diddy’s contribution was minimal.
Diddy’s attorney countered Diageo’s decision, likening it to firing a whistleblower and accusing the company of attempting to distract from discrimination allegations. The attorney emphasized that the lawsuit would continue.
Legal expert Josh Gerben noted that such strong allegations often signal an irreparable break in a business relationship, leaving unanswered questions about the accuracy of the claims from both parties. The outcome of the case may determine the truth behind the allegations.
