Diageo Ends Partnership with Sean Combs

Diageo PLC, a prominent player in the liquor industry, has recently made the decision to part ways with entrepreneur Sean Combs. This comes after Mr. Combs filed a lawsuit claiming that Diageo did not provide sufficient support for their joint ventures involving Ciroc vodka and DeLeón tequila.

Mr. Combs took legal action against Diageo in the New York Supreme Court, claiming that the company, had neglected the spirits which they were jointly responsible for managing. He also alleged Diageo had undermined the business by marketing Ciroc and DeLeón as “urban,” rather than something for the general market.

In a recent legal filing, Diageo has requested for the lawsuit to be dismissed and has officially announced that they will no longer be collaborating with Mr. Combs.

A spokesperson for John C. Hueston, Mr. Combs' attorney, said Tuesday "it’s a cynical and transparent attempt to distract from multiple allegations of discrimination,” adding that Mr. Combs “repeatedly raised concerns as senior executives uttered racially insensitive comments and made biased decisions” over the years. “He brought the lawsuit to force them to live up to that contract, and instead they respond by trying to get rid of him. This lawsuit and Mr. Combs are not going away.”

In 2007, Combs Wines and Spirits partnered with Diageo to create a 50/50 multi-year joint venture aimed at marketing and promoting Ciroc. As part of the partnership, Combs was to take the lead on brand management decisions, including marketing, advertising, public relations, product placement and events. Additionally, in 2013, Diageo and Mr. Combs further expanded their partnership by co-purchasing DeLeon.