Music mogul Sean “Diddy” Combs accused Diageo Plc of unlawful retaliation, extending his legal feud with the world’s biggest spirits company.
Combs, who in May accused Diageo of racism in neglecting his liquor brands, asked a New York court to block the company’s attempts to dismiss the case or force the claims into arbitration.
The founder of Bad Boy Records argues that Diageo neglected his Ciroc vodka and DeLeón tequila, under-investing in the brands because it saw them as only appealing to a Black demographic.
Diageo classified DeLeón as a niche product for so-called “urban” Black customers “based on its misguided belief that a Black entrepreneur could only appeal to others who shared his skin color,” Combs’ lawyers said.
When Combs sued demanding equal treatment, Diageo broke off the relationship and asked the judge in the case to dismiss it or force it into arbitration. “The message is clear – if you dare to shed light on Diageo’s conduct, you will be punished,” the lawyers said.
A spokesman for Diageo referred to a previous statement in which the company said it was saddened by the turn of events and denied Combs’s allegations.
“We are disappointed our efforts to resolve this business dispute amicably have been ignored and that Mr. Combs has chosen to damage a productive and valued partnership,” he said. “We are confident the facts will show that he has been treated fairly.”
The UK spirits maker accused Combs of failing to make good on his contractual obligations when it publicly cut ties with the music producer in June.
The consumer-goods industry is increasingly partnering with famous faces to help market products like spirits and makeup. But the public falling out shows the reputational risks involved when a relationship with a household name sours. The racism claims are an uncomfortable development for Diageo, which positions itself as an industry leader in inclusion and diversity.
Watermelon Flavor
Combs and Diageo first partnered in 2007 to boost the sales of Ciroc vodka. Last month, Diageo accused Combs of failing to contribute his portion of capital for the DeLeón joint venture. In the filing, his lawyers said that the two sides had agreed that Diageo would use its “immense resources” to fund the tequila’s rollout.
When moving to sever ties with the music mogul, Diageo said he had disparaged the spirits group and disclosed confidential information in his complaint. In a letter to Diageo shared with Bloomberg News, Combs’ lawyer John Hueston of Hueston Hennigan LLP refuted the claims, saying Combs had a legal right to file a complaint and that litigation or arbitration allows him to publicly criticize the group. Under an “equal treatment” provision, Diageo also committed to supporting DeLeón in a way similar to other tequila brands, according to Hueston.
Combs accuses Diageo of letting DeLeón languish while investing heavily in other tequila brands, including the Casamigos one co-founded by actor George Clooney. Diageo denies the treatment was unfair. Combs also pushed back on the company’s plan to introduce a watermelon version of Ciroc, warning it was a sensitive flavor to market to Black consumers because of its historic link to racism.
