Diageo Settles Disputes With Rapper Diddy -- Update

By Michael Susin

Diageo said it has reached an agreement with Sean "Diddy" Combs, after the rapper accused the group of racial discrimination and alleged it neglected his DeLeón brand.

The liquor maker--which owns Johnnie Walker whisky and Tanqueray gin--said Tuesday that Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against the company with prejudice.

"Diageo and Mr. Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón tequila, which Diageo now solely owns," it added.

In 2013, as tequila was growing in popularity in the U.S., the rapper's business, Combs Wines and Spirits, formed a joint venture with Diageo to purchase DeLeón.

In May 2023, Combs sued Diageo in New York State Supreme Court, alleging that the company neglected DeLeón and poured its resources into its two other tequila brands, Don Julio and Casamigos, the George Clooney-backed brand that Diageo agreed to buy in 2017 for up to $1 billion.

Diageo announced in June 2023 that it was ending the partnership after working together since 2007 on vodka brand Cîroc. Diageo added that Combs has been paid nearly $1 billion over the years they've worked together.

Combs was responsible for the brand's marketing and worked with the company to develop new Cîroc products, Diago said.

Write to Michael Susin at [e-mail]

(END) Dow Jones Newswires

January 16, 2024 10:52 ET (15:52 GMT)

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