Sean “Diddy” Combs is suing multinational spirits giant Diageo (NYSE:DEO) for alleged racial discrimination in the handling of his vodka and tequila brands, which Combs claims the company typecast as “Black brands.”
In a lawsuit filed Wednesday with the New York Supreme Court in Manhattan, Combs’ lawyers accuse Diageo of neglecting his Ciroc vodka and DeLeon tequila brands, and of marginalizing their appeal by marketing them as “urban” brands.
The rapper and entrepreneur, formerly known by stage names Puffy Daddy and P. Diddy, claimed Diageo also “sabotaged” his DeLeon brand tequila with shoddy packaging that “made the product look cheap,” while showing other celebrity brands, such as actor George Clooney’s Casamigos tequila, more attention and resources.
Diageo acquired Clooney’s Casamigos in 2017 for $1 billion. It’s the top-selling U.S. tequila brand, representing 12.6% of tequila sales in U.S. retail stores, according to data from Nielsen and consulting firm Bump Williams.
Combs Wines and Spirits entered an equal partnership with Diageo in 2007 for the marketing and promotion of Ciroc. Following the success of the partnership, Diageo co-purchased the DeLeon tequila brand with Combs’ company in 2013.
Diageo, a multibillion-dollar, publicly traded spirits company based in London, owns more than 200 brands, including the Don Julio tequila brand.
According to court documents, in 2022, Don Julio was distributed in 36% of retail outlets, compared with 34.4% for Casamigos, and just 3.3% for Combs’ DeLeon.
DEO shares grabbed 99 cents to $169.71.
