Sean “Diddy” Combs has accused alcohol giant Diageo of racial discrimination in a new lawsuit, which claims the spirits company neglected his DeLeón tequila brand in favour of George Clooney’s Casamigos.
In the lawsuit, which was filed in New York on Wednesday (30 May), attorneys for the American rapper’s Combs Wines and Spirits alleged that the London-based liquor company had “typecast” DeLeón tequila as a “Black brand” and marketed it to only “urban” customers.
“Rather than equal treatment, Diageo has treated Mr Combs and his brands worse than others because he is Black,” the lawsuit claimed. “Diageo has typecast Ciroc and DeLeón, apparently deciding they are ‘Black brands’ that should be targeted only to ‘urban’ consumers.”
As tequila sales have grown in the United States in recent years, Combs claimed that DeLeón hasn’t benefited from the same growth as other tequilas, like George Clooney-founded Casamigos, which was acquired by Diageo in 2017.
In addition to DeLeón, Combs also alleged that Diageo neglected marketing for Cîroc, the vodka brand he co-owns with the company. Combs claimed that following Diageo’s acquisition of Casamigos, the company “effectively abandoned” his brands.
“In a business where production, distribution, and sales are the pillars of success, Cîroc and DeLeón have been starved of resources for all three,” the lawsuit read. “While Diageo invested in and expanded its other brands — many of which were acquired after Ciroc and DeLeón — Mr Combs’ brands were allowed to wither.”
The lawsuit also described an alleged incident in which Diageo executive Stephen Rust told Combs that race was one of the reasons why Diageo had limited its distribution. In their exchange, Rust allegedly said that if Combs were Martha Stewart, “things would be different,” according to the court filing.
In a statement to The Independent, Diageo denied the allegations of racial discrimination: “This is a business dispute, and we are saddened that Mr Combs has chosen to recast this matter as anything other than that. Our steadfast commitment to diversity within our company and the communities we serve is something we take very seriously.”
“We categorically deny the allegations that have been made and will vigorously defend ourselves in the appropriate forum,” a spokesperson said. “For more than 15 years, we’ve had a productive and mutually beneficial relationship with Mr Combs on various business ventures, making significant investments that have resulted in financial success for all involved.
“We are disappointed our efforts to resolve this business dispute amicably have been ignored and that Mr Combs has chosen to damage a productive and valued partnership. 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.”
The music mogul entered a partnership with Diageo to develop their Cîroc vodka brand in 2007 as part of an “equal-share venture” with profits split between Combs and Diageo. In 2013, they formed another joint venture to purchase DeLeón.
Tequila and mezcal sales reached a record $6 billion in the US in 2022, according to the Distilled Spirits Council of the United States. Jose Cuervo, Patrón, Don Julio, and Casamigos continue to be some of the top-selling tequila brands in the US.
The Independent has contacted representatives for Sean “Diddy” Combs for comment.
