Here’s Why Diddy is Suing Diageo Over His Vodka and Tequila Brands
Sean “Diddy” Combs has filed a lawsuit against multinational spirits company Diageo, accusing them of racial discrimination in their handling of his vodka and tequila brands.
Combs alleges that Diageo typecast his brands, Ciroc vodka and DeLeon tequila, as “Black brands.” The lawsuit, filed with the New York Supreme Court, claims that Diageo neglected these brands and marginalized their appeal by marketing them as “urban” brands.
Combs, a rapper and entrepreneur, also alleges that Diageo sabotaged his DeLeon tequila brand by using shoddy packaging that made the product appear cheap.
He further claims that Diageo gave more attention and resources to other celebrity brands, such as George Clooney’s Casamigos tequila, which Diageo acquired for $1 billion in 2017 and has since become the top-selling U.S. tequila brand.
In 2007, Combs Wines and Spirits entered an equal partnership with Diageo for the marketing and promotion of Ciroc.
Following the success of this partnership, Diageo co-purchased the DeLeon tequila brand with Combs’ company in 2013.
However, Combs alleges that his brands have been deprived of production, distribution, and sales resources.
Court documents reveal that Don Julio, owned by Diageo and distributed in 36% of retail outlets, had a significantly higher presence compared to Casamigos (34.4%) and DeLeon (3.3%).
According to the lawsuit, Combs claims that Diageo executive Stephen Rust told him in 2019 that race was one of the reasons for limiting the distribution of DeLeon and Ciroc.
Rust allegedly stated that if Combs Wines and Spirits were owned by Martha Stewart, the brands would have broader distribution. Diageo has responded to the lawsuit, categorizing it as a “business dispute.”
The company denies the allegations and emphasizes its commitment to diversity.
Combs’ lawyers are seeking a court order for the “equal treatment” that they argue Diageo promised under the partnership. They are also pursuing separate legal proceedings to claim billions of dollars in damages for Diageo’s alleged neglect and breaches. The outcome of this lawsuit will determine the resolution of the dispute between Combs and Diageo.
