Diageo has countered a claim by Sean ‘Diddy’ Combs that the group cited race as part of the strategy for the jointly-owned DeLeón Tequila brand.
The accusation surfaced last week in a complaint lodged by Combs Wine & Spirits against Diageo North America at New York State Supreme Court. The pair have been in partnership since 2007 through a joint marketing and profit share arrangement for the Cîroc vodka brand, acquiring DeLeón Tequila in early 2014.
In the court papers, Diageo has been accused of favouring the Casamigos and Don Julio brands over DeLeón, alleging that agave allocations went to the former pair as a priority. The filing also claims an executive at the North America division told Combs that if he were Martha Stewart, “his brands would be distributed more broadly”, according to the Wall Street Journal’s coverage of the matter.
“This is a business dispute,” a company spokesperson said late last week. “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.”
On the partnership, the spokesperson added: “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.”
In September 2021, Diageo lined up a “more than” US$500m investment in production capacity for its overall Tequila portfolio.
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