Diddy attends The After, hosted by way of the entrepreneur and Doja Cat, powered by way of Ciroc Top class Vodka and DeLeon Tequila at Membership Love in New York Town, Might 1, 2023.
Shareif Ziyadat | Getty Pictures
Sean “Diddy” Combs is suing multinational spirits large Diageo for alleged racial discrimination within the dealing with of his vodka and tequila manufacturers, which Combs claims the corporate typecast as “Black manufacturers.”
In a lawsuit filed Wednesday with the New York Ideal Courtroom in Big apple, Combs’ attorneys accuse Diageo of neglecting his Ciroc vodka and DeLeon tequila manufacturers, and of marginalizing their attraction by way of advertising and marketing them as “city” manufacturers.
The rapper and entrepreneur, previously recognized by way of degree names Puffy Daddy and P. Diddy, claimed Diageo additionally “sabotaged” his DeLeon emblem tequila with shoddy packaging that “made the product glance affordable,” whilst appearing different superstar manufacturers, akin to actor George Clooney’s Casamigos tequila, extra consideration and sources.
Diageo got Clooney’s Casamigos in 2017 for $1 billion. It is the top-selling U.S. tequila emblem, representing 12.6% of tequila gross sales in U.S. retail retail outlets, in keeping with information from Nielsen and consulting company Bump Williams.
Combs Wines and Spirits entered an equivalent partnership with Diageo in 2007 for the selling and promotion of Ciroc. Following the good fortune of the partnership, Diageo co-purchased the DeLeon tequila emblem with Combs’ corporate in 2013.
Diageo, a multibillion-dollar, publicly traded spirits corporate based totally in London, owns greater than 200 manufacturers, together with the Don Julio tequila emblem.
Consistent with court docket paperwork, in 2022, Don Julio used to be disbursed in 36% of stores, in comparison with 34.4% for Casamigos, and simply 3.3% for Combs’ DeLeon.
Combs claims his manufacturers were “starved” of manufacturing, distribution and gross sales sources. Consistent with the lawsuit, Diageo govt Stephen Rust advised Combs in 2019 race used to be a number of the causes the corporate had restricted its distribution of DeLeon and Ciroc. If Combs Wines and Spirits have been owned by way of Martha Stewart, his manufacturers can be disbursed extra widely, Rust allegedly mentioned in keeping with the lawsuit.
In a commentary to CNBC, Diageo referred to as the topic a “trade dispute.”
“Our steadfast dedication to variety inside our corporate and the communities we serve is one thing we take very severely. We categorically deny the allegations which were made and can vigorously shield ourselves in the right discussion board,” a Diageo spokesperson mentioned within the commentary.
The corporate mentioned it has had a “productive and mutually advisable courting” with Combs for 15 years, “making important investments that experience ended in monetary good fortune for all concerned.”
“We’re disillusioned our efforts to unravel this trade dispute amicably were neglected, and that Mr. Combs has selected to wreck a productive and valued partnership. Whilst we admire Mr. Combs as an artist and entrepreneur, his allegations lack advantage, and we’re assured the details will display that he has been handled moderately,” the corporate mentioned in its commentary.
Combs’ attorneys are looking for a court docket order for “equivalent remedy” they are saying Diageo “contractually promised” below the partnership.
They are additionally looking for “billions of greenbacks in damages because of Diageo’s overlook and breaches” by means of separate criminal lawsuits.
