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Sean "Diddy" Combs claims Diageo intended to launch a watermelon flavor for his DeLeón Tequila despite his warnings about the flavor's racial connotations.
According to a unredacted version of his lawsuit obtained by iHeartRadio on Wednesday, July 5, Combs asserted that he signed off on a watermelon flavor for Cîroc, however, not for DeLeón. In the lawsuit, Combs said he and his team explained that Diageo needed to "be careful" about using watermelon for a brand they consistently referred to as an "urban African American brand." He also didn't want any other Tequila flavors until fans knew more about DeLeón. Diageo allegedly moved forward with the watermelon-flavored Tequila anyways.
“These newly revealed allegations show the legitimacy and seriousness of Mr. Combs’ concerns about Diageo’s systemic mistreatment of the DeLeón brand,” Combs’ attorney John Hueston said. “Rather than treat DeLeon equally, as required by contract, Diageo ignored Mr. Combs’ global appeal and inappropriately pigeon-holed his brands as ‘urban.’ The allegations reveal that Diageo's approach has resulted in repeated mismanagement of production, insufficient distribution, and nonexistent sales support. Diageo has failed to take responsibility and instead has attempted to terminate its relationship with Mr. Combs merely because he spoke up. We look forward to vindicating these claims in Court and holding Diageo to its promises.”
The lawsuit, which was filed in New York State Supreme Court, also reveals more details behind other allegations of discrimination. In 2019, Diageo allegedly failed to provide proper documentation to Mexican government, which caused authorities to impound cases of the tequila at the border. Since then, DeLeón has consistently run out of stock in popular markets. The court documents also provide a timeline of Diageo's actions during the recent agave shortage, in which the company allegedly allocated all of its agave supply to its other brands. In 2021, Diageo allegedly decided that "none of the agave being grown over the next five to six years would be provided to DeLeón."
“For years I have written to leaders at Diageo to explain that the problems regarding African American diversity and inclusion are bigger than the company has been willing to acknowledge,” Diddy said in an email to Diageo North America’s then-President and current-CEO Deborah Crew in April 2022. “I know what the experience of working with Diageo has been like for me and my team, so I can imagine what African American employees and suppliers have experienced. While our relationship has been financially successful for all stakeholders, we have not made enough progress on including and empowering the African American community Diageo relies on for billions of dollars.”
Combs sent the email following reports that Eboni Major, who is the first Black blender at a major whiskey distillery, filed a lawsuit against Diageo for discrimination. Diddy filed his lawsuit at the end of May and claimed that the company's discriminatory behavior against his brands is taking a financial toll. Diageo recently responded by attempting to cut ties with the liquor mogul and announcing their intent to investigate a potential breach of contract.
“Mr. Combs supported, publicly endorsed for several years, and benefited financially from the success of Cîroc Summer Watermelon," a Diageo spokesperson said in response to the allegations. "His attempt to recast follow up discussions regarding innovations for DeLeón is, as is his entire suit, disingenuous and self-serving. It is baffling to us that Mr. Combs is criticizing brand marketing and promotion for Cîroc and DeLeón – the very efforts he led. Under the Cîroc agreement, Mr. Combs was solely responsible for brand marketing, and his personally-owned media agency was the marketing agency of record for DeLeón.”