Diddy Accuses Spirits Company Diageo of Racial Discrimination in Lawsuit

Entrepreneur and music mogul Sean "Diddy" Combs has sued the spirits giant Diageo, accusing the company of failing to invest resources into his Ciroc vodka and DeLeon tequila brands — treating them as "urban" products.

In a suit filed Wednesday and obtained by Rolling Stone, lawyers for Combs claim Diageo and its executives have "put their feet on the neck of Mr. Combs’ brands. In a business where production, distribution, and sales are the pillars of success, Ciroc and DeLeon have been starved of resources for all three." The filing also alleges that while Diageo invested in and expanded its other brands — including the competing Don Julio tequila that it acquired in 2015 and actor George Clooney's Casamigos tequila that it acquired in 2017 — Combs’ brands were left to "wither."

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Combs, who is Black, also claimed that Diageo's President of Reserve and New Business, Stephen Rust, "directly acknowledged the company's racist undertones in 2019," and told the entrpreneur that some of the company's leadership "resented him for making too much money." The suit also alleges that Rust admitted that Combs’ race was "part of the reason Diageo limited the neighborhoods where the Combs brands were distributed."

According to the documents, the spirits company has "proven unwilling to treat its Black partners equally— even when explicitly required by contract to do so," and Combs intends to "seek billions of dollars in damages due to Diageo's neglect and breaches."

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

In a statement to Rolling Stone, a Diageo spokesperson denied the allegations: "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," the company said. "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."

Combs’ relationship with Diageo dates back to 2007, when the global beverage company approached the mogul to take Ciroc's marketing reins — catapulting the brand to a household name.

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