Rapper Diddy has accused beverage giant Diageo of violating the terms of their business partnership and ignoring the tequila brand they jointly purchased because Diddy is black.
He claimed in a lawsuit that the business supported rival brands while denying DeLeon Tequila the same level of backing. The lawsuit was filed in New York.
Additionally, he claimed that Diageo restricted the drinks' availability to "urban" areas.
Diageo refuted the accusations and promised a "vigorous" defense.
A spokesman for the business issued a statement saying, "This is a business dispute, and we are saddened that Mr. Combs has chosen to recast this matter as anything other than that.".
"We take seriously our unwavering dedication to diversity both within our business and in the communities we serve. ".
Following years of collaboration between Mr. Combs and UK-based Diageo, a lawsuit has been filed. ,. who became well-known in the 1990s as a rapper and music executive before venturing into acting and other business endeavors.
In 2007, Diageo, the company behind brands like Johnnie Walker, Guinness, and Tanqueray, approached him about assisting with the marketing of Ciroc vodka.
In 2013, they jointly purchased DeLeon Tequila; however, the complaint charged Diageo with quickly failing to live up to its commitments for distribution, investment, and brand positioning.
In reference to disagreements Diageo has had with other black business partners, Mr. Combs' company, Combs Wines and Spirits, claimed there was a pattern of "racial typecasting.".
The business stated in the filing that "this case is not an ordinary contract dispute where a party chooses to disregard its contractual obligations out of greed and profit.".
"Rather, and in line with the realities faced by many people of color in the United States, Diageo's treatment of its business relationship with Mr. Combs was tainted by racial prejudices. ".
The lawsuit makes reference to a 2019 exchange in which a Diageo executive allegedly said that Mr. Combs's brands would be more well-known if he were "Martha Stewart," among other things.
According to the complaint, Diageo's rival Casamigos and Don Julio tequilas are currently sold in more than a third of all potential outlets, while the DeLeon brand is only available in less than 4%.
Combs Wine & Spirits claimed that Diageo was repeatedly challenged regarding the problems but did nothing to resolve them.
According to the report, Mr. Combs plans to file a separate lawsuit seeking billions of dollars in damages and has pleaded with the court to compel the company to "provide the equal treatment that it has contractually promised.".
"We are disappointed that our efforts to resolve this business dispute amicably have been ignored and that Mr.dot Combs has chosen to harm a productive and valued partnership," Diaego stated.
The company stated: "For more than 15 years, we have worked successfully and profitably with Mr.dot Combs on a variety of business ventures, making sizeable investments that have led to financial success for all parties.".
Although we respect Mr. Combs as an artist and businessman, we don't believe his claims to be true, and we're confident the evidence will support his treatment fairly.
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