Diageo Cuts Ties With Diddy The decision follows a lawsuit filed by Diddy which alleged that the spirits giant did not market his liquor brands as promised due to being "Black brands."
By Emily Rella
Update 6/28: Diageo North America has officially cut ties with Diddy after the rapper filed a contentious lawsuit accusing the beverage giant of being "unwilling to treat its Black partners equally" for not advertising his liquor brands, Cîroc vodka and DeLeón tequila, with equal effort or resources as other brands in the company's portfolio.
"Diageo is profoundly disappointed that Sean Combs, an entertainer and entrepreneur who has amassed nearly one billion dollars from a fifteen-year relationship with Diageo, has caused this bad faith, sham action to be improperly brought before this Court," a Manhattan federal court filing read.
Original story below.
Sean "Diddy" Combs' entrepreneurial efforts and business ventures are vast, from Sean John apparel to Bad Boy Records. But his foray into the food and spirits industry with a multi-year investment deal in vodka brand Ciroq and tequila brand DeLeon has hit a snag — the mogul is suing the labels' parent company for not investing in the products as promised.
Related: Diddy Still Pays Sting $5,000 A Day For Using His Song Without Permission, 26 Years Later
Diddy filed a lawsuit in New York's Supreme Court alleging spirits behemoth Diageo North America failed to allocate as many marketing resources to his brands as it did other celebrity brands, accusing leadership at the company of "kneecapping" growth of Ciroc and DeLeon because they were viewed as "Black brands."
Combs also claims Diageo leadership told him the company was not mass distributing to "urban neighborhoods" and that if he was "Martha Stewart", who's reportedly a big fan of Belvedere and Zubrowka vodkas, Ciroc and DeLeon would be "more widespread."
"Cloaking itself in the language of diversity and equality is good for Diageo's business, but it is a lie," the lawsuit states, per AP. "While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion."
Combs' business with Diageo began in 2007 when he signed a 50/50 multi-year deal with the spirits company that was expected to bring the mogul over $100 million if it performed up to expectations.
He penned a similar 50/50 deal with Diageo and DeLeon in 2014.
Diageo North America is denying Combs' allegations.
"This is a business dispute, and we are saddened that Mr. Combs has chosen to recast this matter as anything other than that," Diageo said in a statement. "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."
Diddy's net worth is an estimated $900 million.
