New Allegations Highlight Diddy’s Brands Were Unfairly Treated by Diageo

July 06, 2023

The details of Sean “Diddy” Combs’ lawsuit against spirits brand Diageo have been made public, shedding light on allegations of mismanagement and unfair treatment of Combs’ Cîroc Vodka and DeLeon Tequila brands. Several claims have emerged in an unredacted version of the lawsuit, which was filed in May and recently made public.

One allegation suggests that Diageo presented Combs with a watermelon-flavored version of the tequila, despite his objections and attempts to educate the company about the racial history and connotations associated with watermelon. Additionally, it is claimed that Diageo planned to allocate all its agave, the main ingredient in tequila, to its other tequila brands, leaving none for DeLeon.

Sloppy paperwork reportedly resulted in a shipment of DeLeon being impounded by Mexican authorities, while erratic production led to repeated shortages of the brand, with at least ten instances of being out of stock in the past year alone.

The unredacted filing also included an email from Combs to Deborah Crew, the former President and current CEO of Diageo North America, expressing frustration with the company’s alleged discriminatory conduct.

“For years I have written to leaders at Diageo to explain that the problems regarding African American diversity and inclusion are bigger than the company has been willing to acknowledge,” Mr. Combs said in the email. “I know what the experience of working with Diageo has been like for me and my team, so I can imagine what African American employees and suppliers have experienced. While our relationship has been financially successful for all stakeholders, we have not made enough progress on including and empowering the African American community Diageo relies on for billions of dollars.”

The court ruling on June 30 allowed the majority of the redacted material to be revealed publicly, with only specific numerical information related to agave plants, shipments, and cases being kept under seal.

Diddy’s attorney, John Hueston, issued a new statement in response to the unredacted allegations, further highlighting the claims of mismanagement and unfair treatment of Combs’ brands by Diageo.

“These newly revealed allegations show the legitimacy and seriousness of Mr. Combs’ concerns about Diageo’s systemic mistreatment of the DeLeon brand,” said John Hueston, Combs’ attorney. “Rather than treat DeLeon equally, as required by contract, Diageo ignored Mr. Combs’ global appeal and inappropriately pigeon-holed his brands as ‘urban.’  The allegations reveal that Diageo’s approach has resulted in repeated mismanagement of production, insufficient distribution, and nonexistent sales support. Diageo has failed to take responsibility and instead has attempted to terminate its relationship with Mr. Combs merely because he spoke up. We look forward to vindicating these claims in Court and holding Diageo to its promises.”

Additional allegations include:

Previous entries in the Diddy and Diageo dispute are available here and here.

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