May 31, 2023 - Economy

Sean "Diddy" Combs accuses Diageo of racial discrimination

Hope King

Three bottles of DeLeón Tequila on a table. — Photo: Randy Shropshire/Getty Images for Diageo

Sean “Diddy” Combs sued Diageo Wednesday, alleging the spirits giant has mismanaged his DeLeón tequila brand while heavily supporting two others, including one co-founded by George Clooney, Casamigos.

Zoom in: Among Combs' allegations is a claim that Diageo pigeonholed his brands — including Ciroc vodka, another in which he partners — as "'Black brands' that should be targeted only to 'urban' consumers," according to the suit.

Zoom out: Casamigos, which Diageo bought in 2017, is the No. 1 selling U.S. tequila brand with nearly 13% of tequila sales in retail stores, while DeLeón, which Combs has co-owned with Diageo since 2014, has 0.4% share, according to WSJ.

The other side: Diageo denied the allegations in a statement to the AP, calling the situation with Combs "a business dispute, adding "we are saddened that Mr. Combs has chosen to recast this matter as anything other than that."

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Sean "Diddy" Combs accuses Diageo of racial discrimination

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