Topline
The parent company of Sean Combs’s Ciroc vodka and DeLeón tequila said Tuesday it will no longer work with the rapper after he sued them for allegedly neglecting the liquors and reportedly labeling them as “Black brands” that should be targeted to “urban” consumers
Sean “Diddy” Combs speaks during a press conference to announce a partnership with Ciroc vodka at … [+]
Key Facts
Diageo PLC, a British liquor company that owns more than 200 brands worldwide, on Tuesday asked the New York Supreme Court to dismiss a lawsuit Combs filed earlier this year claiming Diageo has “proven unwilling to treat its Black partners equally.”
The company accused Combs of “bad-faith actions” that “threatened to publicly defame Diageo if we did not meet his unreasonable financial demands” in a statement Tuesday, further claiming that “despite having made nearly a billion dollars over the course of our 15-year relationship, Mr. Combs contributed a total of $1,000 and refused to honor his commitments.”
Combs has accused the company of providing unequal treatment to the Ciroc and DeLeón brands because he’s Black, and claims it “starved” them of marketing, production and distribution resources when compared to other brands like Don Julio and Casamigos tequila, formerly owned by George Clooney, according to Variety, which first reported the separation.
A representative for Diageo said the company is still “committed to the success” of the two brands.
A spokesperson for John Hueston, Combs’ attorney, said Tuesday “this lawsuit and Mr. Combs are not going away,” adding the rapper has repeatedly raised concerns over “racially insensitive comments” and “biased decisions” made at the top levels of Diageo over the years.
Key Background
Combs Wines and Spirits in 2007 entered into an equal-share venture with Diageo for Ciroc, a then-struggling vodka brand that took off after the deal. Diageo then bought DeLeón with Combs’ company, a purchase Diageo’s statement said it funded and has spent more than $100 million on in the time since. In its motion to dismiss, Diageo said Combs has a 50% interest in DeLeón but has “repeatedly and continually refused to provide any funding” for the brand. In his lawsuit filed in May, Combs said Diageo has been neglecting his brands in favor of others, but Diageo said Combs never paid for his half of the purchase, “severely damaged the DeLeon brand at a critical juncture, and stalled its promise and potential for growth for several years.” Combs claimed Diageo leadership told him that his race was among the reasons for his brands’ limited distribution to urban neighborhoods and some leaders regarded Diddy “as a Black man that might prove useful in marketing to Black consumers. Nothing more,” per the Los Angeles Times.
Crucial Quote
“Unfortunately, Combs has proven himself once and for all to be an unreliable and untrustworthy business partner,” Diageo said in its motion to dismiss.
Big Number
14. That’s where Combs ranked on Forbes 2022 list of highest-paid entertainers. The bulk of his fortune comes from his partnership with Ciroc vodka, and in November of 2022 he announced a $185 million deal to buy cannabis retail stores and production facilities in New York, Illinois and Massachusetts from Cresco Labs and Columbia Care. The deal made him chairman and CEO of the largest Black-owned cannabis business in the $26.1 billion (2022 sales) industry. He previously said he hoped his marijuana company would “become the Diageo of cannabis.”
Further Reading
Sean ‘Diddy’ Combs Hopes To Build The ‘Diageo Of Cannabis’ With $185 Million Deal (Forbes)
‘Illusion of inclusion’: Diddy sues company behind his liquor brands for discrimination (Los Angeles Times)
The Highest-Paid Entertainers 2022 (Forbes)
Source: https://www.forbes.com/sites/maryroeloffs/2023/06/27/diddy-liquor-dispute-diageo-dropping-rapper-who-sued-for-racial-discrimination-unfair-promotion-of-liquor-brands/