Rapper Diddy And Diageo Part Ways: A Look At The High-Stakes Split In The Beverage Industry

Author: Shivani Kumaresan | January 17, 2024 08:33am

American rapper Sean “Diddy” Combs and global beverage giant Diageo plc (NYSE:DEO) have officially parted ways, ending their long-standing partnership on Cîroc vodka and DeLeón tequila. 

The joint statement from Combs and Diageo confirmed that Diageo now holds complete ownership of DeLeón.

This decision comes after a legal dispute that surfaced in May, when Combs sued Diageo, claiming the company neglected the DeLeón brand in favor of its other tequila labels, reported WSJ.

The dissolution of their partnership marks the end of a significant chapter in the spirits industry.

The specifics of the financial settlement remain undisclosed, but Combs has agreed to drop all allegations.

The report said Combs had accused Diageo of racial discrimination, alleging that the company had pigeonholed DeLeón as “urban” and described it as a “Black brand.”

Combs’ collaboration with Diageo began in 2007 with Cîroc vodka, where he played a pivotal role in the brand’s marketing and product development, as per the report.

Diageo, which also produces renowned brands like Johnnie Walker and Guinness, had reportedly stated in June 2023 that the partnership was ending due to contract breaches by Combs.

Over the years, Combs received nearly $1 billion from his association with Diageo, a figure highlighted in the company’s court filings, according to the report.

Price Action: DEO shares closed lower by 0.96% at $141.75 on Tuesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Wikimedia Commons

Posted In: DEO