Diddy Is Suing His Ciroc, DeLeon Spirits Business Partner In the lawsuit, Diddy alleges spirits giant Diageo North America did not market his brands as promised due to being "Black brands."

By Emily Rella

Getty Images
Sean

Sean "Diddy" Combs' entrepreneurial efforts and business ventures are vast, from Sean John apparel to Bad Boy Records. But his foray into the food and spirits industry with a multi-year investment deal in vodka brand Ciroq and tequila brand DeLeon has hit a snag — the mogul is suing the labels' parent company for not investing in the products as promised.

Related: Diddy Still Pays Sting $5,000 A Day For Using His Song Without Permission, 26 Years Later

Diddy filed a lawsuit in New York's Supreme Court alleging spirits behemoth Diageo North America failed to allocate as many marketing resources to his brands as it did other celebrity brands, accusing leadership at the company of "kneecapping" growth of Ciroc and DeLeon because they were viewed as "Black brands."

Combs also claims Diageo leadership told him the company was not mass distributing to "urban neighborhoods" and that if he was "Martha Stewart", who's reportedly a big fan of Belvedere and Zubrowka vodkas, Ciroc and DeLeon would be "more widespread."

"Cloaking itself in the language of diversity and equality is good for Diageo's business, but it is a lie," the lawsuit states, per AP. "While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion."

Combs' business with Diageo began in 2007 when he signed a 50/50 multi-year deal with the spirits company that was expected to bring the mogul over $100 million if it performed up to expectations.

He penned a similar 50/50 deal with Diageo and DeLeon in 2014.

Diageo North America is denying Combs' allegations.

"This is a business dispute, and we are saddened that Mr. Combs has chosen to recast this matter as anything other than that," Diageo said in a statement. "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."

Diddy's net worth is an estimated $900 million.

Wavy Line
Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Editor's Pick

'Catastrophic': Here's What You Should Know About the Debt Ceiling Crisis — And How a Default Could Impact Your Business
Lock
I Helped Grow 4 Unicorns Over 10 Years That Generated $18 Billion in Online Revenues. Here's What I've Learned.
Lock
Want to Break Bad Habits and Supercharge Your Business? Use This Technique.
Lock
Don't Have Any Clients But Need Customer Testimonials? Follow These 3 Tricks To Boost Your Rep.
Why Are Some Wines More Expensive Than Others? A Top Winemaker Gives a Full-Bodied Explanation.

Related Topics

Business News

7 of the 10 Most Expensive Cities to Live in the U.S. Are in One State

A new report by U.S. News found that San Diego is the most expensive city to live in for 2023-2024, followed by Los Angeles. New York City didn't even rank in the top 10.

Money & Finance

3 Ways to Create Multiple (Big) Streams of Income

Here are three ways to create multiple streams of income. These strategies require effort and resources but offer significant financial potential.

Science & Technology

She's Been Coding Since Age 7 and Presented Her Life-Saving App to Tim Cook Last Year. Now 17, She's on Track to Solve Even Bigger Problems.

Angelina Tsuboi, a full-stack mobile and web developer who also happens to be a pilot, has always been solution-oriented.

Diversity

Beyond Marketing — How Brands Can Truly Support the Black Community on Juneteenth

Here are a few authentic ways businesses can support and serve as allies to the Black community on Juneteenth.

Leadership

The Real Reason Why The Return to Office Movement is Failing is Revealed in New Study

There is a vivid sign of the disconnect between employees and their workplace, a glaring indication that companies need to revise their scripts to improve their hybrid and remote work policies.