Sean “Diddy” Combs’ Diageo dispute deepens as court unseals documents
However, Diageo claims that DeLeon’s sales have doubled since the 2021 agreement was implemented
Rapper, producer, and entrepreneur Sean ‘Diddy’ Combs recently filed a lawsuit in the New York Supreme Court against spirits seller Diageo.
Combs is seeking enforcement of a 2021 agreement that requires Diageo to treat his DeLeon tequila brand “at least as favourably” as its other tequila brands.
The legal action comes after years of alleged neglect and mistreatment of the DeLeon brand, which Combs established in partnership with Diageo in 2013.
Combs filed his lawsuit against Diageo in May, but specific details of the case, including the 2021 agreement, were initially redacted.
Judge Joel Cohen has since ruled that only limited portions could remain confidential, resulting in the release of the previously undisclosed information.
Combs claims that Diageo positioned DeLeon tequila as an inferior “urban” brand, which limited its distribution and hindered its growth. Diageo has denied these accusations and, in late June, sought to compel arbitration or dismiss the lawsuit.
Diageo also terminated its partnership with Combs for Ciroc vodka, a brand that he had been promoting since 2007.
According to the newly revealed documents, Combs argues that Diageo repeatedly neglected DeLeon. When compared to other tequila brands like Don Julio, Combs says DeLeon was distributed in only 3% of potential outlets as of last year.
Additionally, Combs claims that Diageo made unilateral decisions that harmed the brand, such as discontinuing popular 375ml “half bottles” and launching a redesigned bottle with no marketing support.
Combs claims Diageo’s decisions regarding DeLeon were tinged with racism. He had insisted that DeLeon should not introduce flavoured versions until customers had a chance to familiarise themselves with the brand.
Despite this, Diageo developed a watermelon flavour without consulting Combs. Combs had previously cautioned the company about the racist history and negative connotations associated with watermelon in brands targeting black consumers. He claims that Diageo disregarded his concerns.
Combs draws a distinction between his partnership with Diageo for Ciroc vodka, which offers over a dozen flavours, from DeLeon, which would have introduced watermelon as its first flavour.
Internal documents from Diageo allegedly proposed downplaying Ciroc’s connection to Combs, aiming to alter its image as an African-American brand.
In its court filings, Diageo accuses Combs of making “false and reckless” allegations in an attempt to secure monetary damages. The company claims that DeLeon’s sales have doubled since the 2021 agreement was implemented.
“His attempt to recast follow-up discussions regarding innovations for DeLeon is, as is his entire suit, disingenuous and self-serving,” Diageo said in a recent statement.
