Diageo is reportedly exploring a sale of Cîroc Vodka, the brand once transformed by the support of disgraced music mogul Sean “Diddy” Combs, who is now in prison facing federal charges of sex trafficking among other crimes.
The company has reached out to potential buyers, “including beverage companies and buyout firms to gauge their interest” according to sources familiar with the matter who spoke to Bloomberg. Considerations are at an early stage and may not lead to a transaction, reported the outlet.
The series of criminal complainsts against one of the most famous names in hip-hop kicked off in November of 2023, when Combs’ ex-girlfriend Casandra “Cassie” Ventura filed a lawsuit accusing the Bad Boy Records boss of rape and physical abuse. In September, Combs was arrested and denied bail after pleading not guilty to charges of racketeering, sex trafficking and transportation to engage in prostitution.
The spirits giant has been slowly distancing itself from Combs since he filed a lawsuit in May 2023 alleging that the brands he partnered on with Diageo — Cîroc Vodka and DeLeon Tequila— received worse treatment because of his race. After nearly nine months of an ugly public legal battle, the two parties settled the dispute in January and discontinued their 15-year business relationship.
Combs is often credited with being among the first to illustrate the power of celebrity backing to boost spirit sales. In 2007, Diageo enlisted Combs to develop Cîroc, at the time a low-ranked vodka. After Combs took charge of the brand’s strategic marketing, Cîroc ascended to a top seller within a few years, growing from a 50,000-case-per-year vodka into nearly 2 million-per-year. It has since released several product variations, including ready-to-drink line CÎROC Vodka Spritz.
The success of that collaboration spurred Diageo to form a joint venture with Combs in 2014 and to purchase DeLeón, a boutique high-end tequila brand. Diageo has always fully owned Cîroc – the group previously partnered with Combs only on brand marketing – and now fully owns DeLeón. In November, Diageo unveiled a new campaign and brand platform for DeLeón, with no mention of its former co-owner.
Diageo is among the larger spirits companies that have been offloading underperforming brands as industry-wide spirits sales continue to suffer. The group completed its second brand sale in the span of a month over the summer: it dropped Venezuelan rum label Pampero after selling fruit-flavored liqueur brand Safari. The rum sale was said to allow Diageo to focus on “core areas of strength” in its portfolio, said John Kennedy, Diageo Europe president, in a statement emphasizing the company’s “disciplined and strategic approach to capital allocation.” In a previous statement, he cited whiskey and tequila as areas of strength.
Cîroc is the lowest performing vodka in Diageo’s portfolio, with sales falling 28% in North America in FY24 ending in June compared to Smirnoff (-3%) and Ketel One (-5%).
Diageo has not returned a request to comment.
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