Day: November 21, 2024

As AFROTECH previously reported, Combs sued Diageo as he believed the company was not providing DeLeón the same thought and care as its other tequila brands, including George Clooney’s Casamigos, which Diageo purchased for $1 billion in 2017.

He continued, “So there was no plan for us to be successful. It was no equal treatment. The other brands, they had agave planted, they had no agave planted for me.”

According to court documents shared with AFROTECH, Diageo suggests that they have provided substantial support for DeLeón, while Diddy has significantly failed to uphold his end of the joint venture (JV).

“Diageo has disproportionately supported and grown the DeLeón brand despite the Combs Parties’ repeated failures to live up to their own commitments and their repudiation of their bargained–for role as true equity partners,” court papers read. “That is why CWS will not prevail on the sole breach of contract claim brought here: it is contrary to every fact about the parties’ actual performance of their contractual obligations.”

Diageo also cites Diddy’s lack of equity in the partnership as a result of his failures “to take on any of the risks, burdens, and responsibilities that come with being a true equity owner and partner.”

It was expected that Combs would provide marketing, advertising, and promotional services.

Diageo also addressed Combs accusation of racial discrimination. He had mentioned that the liquor company wanted to box him in the “colored section” and only had plans to distribute his products in Black neighborhoods.

Diageo states the allegations are untrue and has countered his claims. The company claims the mogul “asked to be paid millions of dollars more under threat of publicly accusing Diageo of racism” and once demanded $100 million in the wake of COVID-19.

“In May 2021, following Diageo’s public commitment of $100 million to help with COVID recovery for the hospitality sector and underprivileged communities, Mr. Combs demanded that Diageo pay him $100 million and threatened then to ‘reach out to every news outlet’ to ‘burn the house down’ and cause maximum damage to Diageo and the DeLeón brand, by making public accusations of racism if Diageo refused to write the check,” an excerpt from the court filing read.

Furthermore, the company does acknowledge the disruption of DeLeón supply and states it was a result of the effects of the pandemic.

“Following the July 2020 reset, Mr. Combs and CWS nonetheless periodically accused Diageo of racism, citing supply disruption issues and occasional ‘stock-outs’ of DeLeón products as evidence of supposedly discriminatory treatment,” the company stated. “These disingenuous accusations ignored the incontrovertible fact that the COVID pandemic was impacting every part of the supply chain; indeed, the pandemic negatively affected supply for all of Diageo’s tequilas, as well as for its other brands and products.”

In response, Diddy’s attorney, John C. Hueston, shared the following statement with AFROTECH: “Diageo claims its executives were available to hear all of Mr. Combs concerns about race and diversity issues. The sad truth is that they never truly listened to what Mr. Combs was saying and brushed them off as threats and demands for money. If they had actually taken the time to comprehend his concerns, and lived up to the agreements they signed, we wouldn’t be in court today.”