*Sean “Diddy” Combs is taking Diageo to court, accusing the British multinational spirits company of not financially backing his DeLeón tequila brand it co-owns with the music mogul and entrepreneur. Combs charges Diageo with racial discrimination; the lawsuit, filed on Wednesday in New York State Supreme Court in Manhattan, states the company categorized DeLeón as “urban” and described it as a “Black brand,” reports the WSJ.
Instead, Combs claims that Diageo commercially spearheaded two other tequilas, including Casamigos, the George Clooney-backed brand that Diageo agreed to purchase in 2017 at a $1 billion valuation. Diageo denies the hip-hop star’s assertions and issued a statement.
“This is a business dispute, and we are saddened that Mr. Combs has chosen to recast this matter as anything other than that,” a company spokeswoman said to WSJ. “Our steadfast commitment to diversity within our company and the communities we serve is something we take very seriously.”
Combs’ lawyers want a court injunction to enforce the 2013 joint-venture agreement and “subsequent written agreements between Combs and Diageo that the partners signed to resolve complaints by Combs,” according to the court filing.
Combs’ legal team also added to the complaint that Diageo and its executives placed “their feet on the neck of Mr. Combs’ brands,” cutting off production, distribution, and sales of Combs Wines and Spirits brands, Ciroc vodka and the high-end tequila brand DeLeón, and are seeking “billions of dollars in damages due to Diageo’s neglect and breaches” in a separate lawsuit, reports The Guardian.
According to the court filing, Combs criticized Diageo executives’ methods for managing the DeLeón brand, such as: “chronically out-of-stock products, a tiny distribution footprint, a botched redesign and confusing changes on pricing.”
In 2019, Diageo executive Stephen Rust allegedly said to Combs that race was the determining factor and reason why the company restricted the distribution of DeLeón and Cîroc, according to the court filing.
Based on their conversation, Rust told Combs if he were Martha Stewart, his brands would be broadly distributed, according to the court filing.
Diageo Chief Executive Ivan Menezes responded with the intent to repair the business relationship with Combs and thanked him for being the “key driver of the success of Cîroc” by being “a champion for the African American people,” according to the court filing.
UPDATE
A rep for Diageo tells TMZ, “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.”
The rep added, “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.”
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