Business

Diddy claims Diageo ditched his ‘urban’ tequila brand while pushing George Clooney’s: lawsuit

Sean “Diddy” Combs claimed business partner Diageo neglected his tequila label — calling it “urban and a “black brand” — in favor of rival Casamigos after it paid $1 billion for the George Clooney-owned spirit, according to a lawsuit filed by the rap mogul Wednesday.

Combs alleged the spirits giant “sabotaged” his DeLeon brand tequila with shoddy packaging that “made the product look cheap,ā€ in the complaint filed in New York State Supreme Court in Manhattan,

He also alleged that a Diageo šŸŒœexecutive told him in 2019 that race was one of the reasons the company had limited its distribution of DeLeĆ³n and his popular Ciroc vodka.

ā™ŒThe exec told the rapper-turned-entrepź§…reneur that if his company, Combs Wines and Spirits, were owned by Martha Stewart, his brands would be distributed more broadly, according to the court filing.

The same year, Diageo introduced a redesigned bottle with a label that ā€œwas prone to bubbling, which made the product look cheap,ā€ according to the court filing. ā€œThe rebranded DeLeĆ³n product, unsušŸ·rprisingly, did not take off.ā€

Sean ā€œDiddyā€ Combs alleged that a Diageo executive told him in 2019 that race was one of the reasons the company had limited its distribution of DeLeĆ³n and his popular Ciroc vodka. Getty Images

CombšŸøsšŸ¦„ took his complaints to Diageo boss Ivan Menezes.

ā€œDeLeĆ³n continues to be sabāœƒotaged by Diageo managšŸ»ement and neglect,ā€ he wrote to chief executive Ivan Menezes in 2020, according to the court filing.

Menezes responded by telling Combs he was committed to resetting the relationship š“°and thanked him for being the ā€œkey driver of the success of CĆ®rocā€ by being ā€œa champion for the African-American people,ā€ according to the court filing.

Diageo denied Combs’ allegations of racial discrimination or that it neglected the brand.

ā€œThis is a business dispute, and we are saddened that Mr. Combs has chosen to recast this matter as anything other than that,” a Diageo spokesperson told The Post.

“Our steadfast commitment to diversity within our company and the communities we serve is something we take very seriously.”

Combs alleged the spirits giant “sabotaged” his DeLeĆ³n brand tequila with shoddy packaging that “made the product look cheap.ā€ ZUMAPRESS.com

“We categorically deny the allegations that have been made and will vigorously defend ourselves in the appropriate forum,” the spokesperson added.

The Post has sought comment from Combs.

In 2007, Combs and Diageo teamed up to create CƮroc, which became a best-seller.

Six years later, the two sought to capitalize on the rising popularity of tequšŸ’Žila and formed a joint venture which acquired DeLeĆ³n, a little-known brand that was being sold for $1,000 a bottle at some bars.

Diageo denied Combs’ allegations of racial discrimination or that it neglected the brand. Above, George Clooney. Getty Images
Clooney’s Casamigos tequila brand. ZUMAPRESS.com

In 2šŸ’ƒ017, Diageo agreed to pay up to $1 billion for Casamigos, the top-selling tequila brand fronted by Clooney and his bušŸ¦„siness partner Rande Gerber.

Diageo’s portfolio also includes Don Julio.

The two brands made up nearly 25% of the $11.7 billion in tequila sales last year, according to industry souršŸŒƒces cited by thešŸ„€ Journal. 

Meanwhile, DeLeon ranked 28th, representing 0.4% oź¦œf tequila sales in 2022, the Journal reported. 

Diddy alleged DeLeĆ³n has been chronically out of stock and hź¦¬as been hamstrung by a small distribution footprint, according to the complaint.

The complaint seeks to force Diageo to comply with a 2013 joint-venture agreemenšŸ¤”t and other agreements signed between the two parties, accorÜ«ding to the Journal.

ā€œFor more than 15 years, weā€™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,” the spokesperson said.

In 2017, Diageo agreed to pay up to $1 billion for Casamigos, fronted by Clooney and his business partner Rande Gerber, above. ZUMAPRESS.com

“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.”

The spokesperson added: “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.ā€ 

With Post wires