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Sean Combs sues British drinks giant Diageo for racism and backing brands of white celebrities

Sean Combs, also known as Puff Daddy or Diddy, co-owns the DeLeon tequila brand - INVISION
Sean Combs, also known as Puff Daddy or Diddy, co-owns the DeLeon tequila brand - INVISION

The US rapper and entrepreneur Sean “Diddy” Combs is suing British spirits giant Diageo, accusing it of racism and deliberately favouring brands owned by George Clooney and Ryan Reynolds.

Combs said in a court filing on Wednesday that Diageo has “kneecapped” the high-end spirit products backed by him, which it had “typecast” as “black brands” that should only be marketed to “urban” consumers.

Combs co-owns the DeLeon tequila brand with Diageo and has as a partnership on its Ciroc vodka brand.

At the same time, the drinks company has poured resources into Casamigos, the Clooney-backed tequila brand and Aviation Gin, owned by Reynolds, the lawsuit says.

The multinational had proclaimed itself a “leader in diversity”, while in fact it “put their feet on the neck of Mr Combs’ brands”, the filing in New York’s Supreme Court states.

The phrasing may be an indirect reference to the murder of George Floyd, an African American man killed by a white police officer in Minneapolis in 2020.

The music mogul is seeking a court order for Diageo “to provide the equal treatment” it “contractually promised”.

His company, Combs Wines and Spirits also plans to seek billions of dollars in damages in a separate lawsuit.

Amal and George Clooney, who backs the Casamigos brand - GETTY IMAGES
Amal and George Clooney, who backs the Casamigos brand - GETTY IMAGES

Diageo “categorically” denied the allegations.

“This is a business dispute, and we are saddened that Mr Combs has chosen to recast this matter as anything other than that,” the company said.

“Our steadfast commitment to diversity within our company and the communities we serve is something we take very seriously.”

During the 15-year partnership, Combs claims he has raised a number of issues, including chronically out-of-stock products, a tiny distribution footprint, a botched redesign and confusing changes on pricing.

The rapper, who has gone by the names Puff Daddy, P Diddy and Diddy, has a wide-ranging business portfolio that includes fashion, spirits, media and cannabis.

He struck a deal to develop Diageo’s Ciroc vodka in 2007. He took over the brand’s strategic marketing and helped to develop new Ciroc products. Sales of the brand grew rapidly after the deal.

In 2014, he announced a joint venture with Diageo to buy DeLeon, a little-known, “ultra premium” tequila. Its most expensive offerings can cost more than $1,000 a bottle.

Diageo later bought two other tequila brands – Don Julio and Casamigo.

Combs’ suit claims Diageo has “effectively abandoned DeLeon” while its focus has allegedly been on Casamigos, Aviation Gin and Ketel One vodka.

According to the legal complaint, a top Diageo executive “acknowledged the company’s racist undertones in 2019” when he admitted “race was part of the reason Diageo limited the neighbourhoods where the Combs brands were distributed.

“If Mr Combs were ‘Martha Stewart’, [the executive] said, things would be different.”