Cutting the Cord: Diageo and Diddy’s Business Relationship Comes to an End

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Diddy’s (Parliament Politic Magazine) –The Spirits giant Diageo revealed they will be ending a partnership of 15 years with Sean ‘Diddy’ Combs. As a brand ambassador and joint venture partner he has helped the struggling company Ciroc label. This instant move was in response to accusations of racial discrimination against British Alcoholic beverage makers. Diddy has sued the company in June claiming that the company didn’t invest promised money for his vodka and tequila brands. He revealed that the products were marketed to the ‘urban’ consumers. As a result, Diageo is seeking to dismiss the case in court or move it into arbitration.

Breaking Ties: Diageo and Diddy Part Ways

The statement from Sean’s lawyer reveals that Diageo is attempting to end their deals with Combs. It seems like firing a whistleblower and calling out racism. Over the years Sean is putting up with harsh comments and concerns that are based on racism. Diageo approached Combs in 2007 for handling the promotions and marketing for Ciroc. It was more like an equal-share joint venture. He worked hard to gain spectacular growth for both Ciroc and DeLeon labels. Even though the company didn’t devote any proper resources, he continued to work harder.

Diageo claims that they are being typecast as black brands should only target ‘urban’ consumers. According to the lawyer of Sean, Diageo didn’t comply with any of the obligations mentioned in the agreement. They continued producing low quantities and distributed these products in fewer outlets. This hindered the reach and popularity of Sean’s label to a huge extent. Moreover, they restricted the marketing and promotions of DeLeon as compared to other brands. Sean has decided to sue the company and has already filed a complaint.

Clashing Values: Why Sean Diddy Combs Decided To End His Partnership?

In 2014, Diageo purchased the competing brand Don Julio. They are committed to spending around $400 million to grow this business even higher. Previously they spent around 1 billion while three years later they acquired Casamigos. As Diageo is busy acquiring competing brands, they have nearly abandoned DeLeon. The complaint from Sean also states that Diageo is completely focused on brands like Casamigos. Interestingly, the founders of Casamigos are George Clooney, Randy Gerber, and Mike Meldman. It also involves Aviation Gin (with its owner Ryan Reynolds), and Ketel. 

They believe this combination is more suitable for their growth and a broader marker. However, Diageo has dismissed this lawsuit. They are stressing over the fact that brands of Sean don’t need equal treatment. There is a difference in his brands as compared to others. This is why the marketing strategies may differ drastically.

 The lack of commitment from Sean Combs has led to a bad relationship between them. No doubt, the relationship between two partners is severely damaged. According to Diageo, they have already forgiven Mr. Combs for the debts through various negotiations. Unfortunately, Sean is turning out to be untrustworthy for them.

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Diageo Decides to Say Goodbye to Sean Diddy Combs

Diageo is protecting its image by releasing a statement in the media. They are stressing that Combs has undermined their partnership. Moreover, he is defaming their image publicly and threatens Diageo to meet his unreasonable financial demands.

The company is trying to salvage the broken relationship but everything goes in vain. They revealed that they had to fund the purchase of DeLeon. While they invested around $100 million in the growth of the brand. Despite investing nearly a billion dollars during the 15-year partnership with Mr. Sean, he couldn’t even give them respect. Moreover, Diageo is unhappy that he refused to fulfil his commitments to the growth of this brand.

Diageo has filed the legal proceeding and claimed that they have tried to salvage the broken relationship with him all this time. A spokesman from the firm reveals that bad-faith actions are the real reason for this parting. According to him Sean has breached the contract and they are left with no choice but to dismiss these claims.

The best idea, for now, is to part ways and don’t continue with any of the business activities. Diageo has continued to fund DeLeon and doesn’t differentiate it in any way. The team from the firm is trying to look for ways, but there seems to be no path forward.

Beth Malcolm

Beth Malcolm is Scottish based Journalist at Heriot-Watt University studying French and British Sign Language. She is originally from the north west of England but is living in Edinburgh to complete her studies.