Longtime Partners Diageo, Sean Combs At Odds, As Latter Files Suit
June 1, 2023Sean “Diddy” Combs and Combs Wines and Spirits LLC have filed a lawsuit against Diageo in New York state court, alleging that the spirits giant neglected to properly promote DeLeón Tequila and Cîroc vodka, two brands on which it’s partnered with Combs. The lawsuit alleges that Diageo pigeonholed the Combs brands, exclusively marketing them to black and “urban” consumers at the expense of the wider spirits market.
Diageo has denied the claims, saying, “Our steadfast commitment to diversity within our company and the communities we serve is something we take very seriously. We categorically deny the allegations that have been made and will vigorously defend ourselves in the appropriate forum.”
The suit alleges that Diageo is violating its original agreements with Combs, who stipulated that Diageo agree to ensure the brands were not ignored or relegated to second-class status in the drinks giant’s portfolio. The lawsuit alleges that instead of prioritizing the Combs brands, Diageo invested more heavily in labels like Casamigos and Don Julio, leaving DeLeón to flounder in the market as it suffered from lacking production, promotion, and distribution. DeLeón posted 72% growth to 120,000 cases in the U.S. last year, according to Impact Databank, but remains far smaller than Casamigos or Don Julio, which are both now above 2 million cases.
Diageo characterized the matter as a business dispute and affirmed its commitment to diversity. “For more than 15 years, we’ve had a productive and mutually beneficial relationship with Mr. Combs on various business ventures, making significant investments that have resulted in financial success for all involved. We are disappointed our efforts to resolve this business dispute amicably have been ignored, and that Mr. Combs has chosen to damage a productive and valued partnership,” said a spokesperson. “While we respect Mr. Combs as an artist and entrepreneur, his allegations lack merit, and we are confident the facts will show that he has been treated fairly.”—Shane English
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