Diddy Sues Booze Giant for Allegedly Snubbing His Tequila Brand: ‘Tainted by Racial Prejudices’

Sean “Diddy” Combs is suing alcohol giant Diageo for allegedly breaching their partnership deal for a brand of tequila, leveling accusations of racism at the company and claiming it has treated his product line “worse than others because he is Black.”

In a complaint filed Wednesday (May 31) in New York court, attorneys for the star’s Combs Wines and Spirits claimed that Diageo had “typecast” his DeLeon Tequila as a “Black brand” that could only be sold to “urban” consumers, harming its sales and potential for growth.

“Cloaking itself in the language of diversity and equality is good for Diageo’s business, but it is a lie,” Combs’ lawyers wrote. “While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion.”

Combs claims the “unequal treatment” DeLeon has received from Diageo has left his brand lagging behind competing Diageo brands like Casamigos and Don Julio — and that the company then used those lower sales figures to offer even less support for the brand.

“Combs Wines seeks to finally put an end to Diageo’s longstanding misconduct,” the star’s lawyers wrote. “Diageo must be ordered by a court to give Combs Wines the same treatment it gives its other, successful tequila brands. It is time that Diageo’s actions match its words.”

In a statement to Billboard, a Diageo spokesperson said the company was “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.”

“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. We categorically deny the allegations that have been made and will vigorously defend ourselves in the appropriate forum.“

In technical legal terms, the lawsuit claims that Diageo has violated a specific provision of the operating agreement that governs the Combs-Diageo joint venture that owns DeLeon. It’s not entirely clear what that provision requires — much of the legal complaint is heavily redacted — but the lawsuit claims it was included in the deal to ensure equal treatment.

“Because he knows that contracts matter more than press releases, Mr. Combs insisted that Diageo agree to certain terms to ensure his brands were not ignored or relegated to second-class status,” Combs’ lawyers wrote.

Among other alleged breaches, Combs claims Diageo violated that provision by placing DeLeon in “far fewer outlets than its other tequila brands” and failing to produce enough of it to keep store shelves stocked.

But Combs’ lawyers repeatedly stressed that their case was not simply a run-of-the-mill breach of contract lawsuit: “Similar to the realities experienced by many people of color in the United States, Diageo’s treatment of its business relationship with Mr. Combs was tainted by racial prejudices.”

At one point, Combs claims he was directly told that “things would be different if he were a white, not Black, celebrity.”

“Diageo, in other words, openly admitted that it viewed Mr. Combs merely as a Black man that
might prove useful in marketing to Black consumers,” Combs said. “Nothing more.”

Read the entire complaint against Diageo here:

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