British spirits giant Diageo Plc is reportedly exploring the sale of its Cîroc Vodka brand, a once-thriving label elevated by a high-profile partnership with music mogul Sean “Diddy” Combs. Sources familiar with the matter told Bloomberg that the company has approached beverage companies and private equity firms to gauge interest, though discussions remain in the early stages and may not result in a deal.
The potential sale comes less than a year after Diageo and Combs settled a contentious lawsuit with the company. Combs accused Diageo of racial discrimination, alleging that the company had failed to adequately support Cîroc and DeLeón Tequila, another brand tied to his name. While the allegations were later withdrawn, the fallout ended a partnership that had been instrumental in propelling Cîroc to prominence in the spirits market.
Combs has since been arrested by federal agents on racketeering sex trafficking charges and faces a slew of additional sexual assault lawsuits, including on settlement with ex-girlfriend Cassie Ventura.
Cîroc Vodka, once a staple in nightclubs is synonymous with Diddy’s flamboyant brand. The Bad Boy CEO became the face of the brand in 2007 through a unique marketing partnership. His celebrity status and influence helped transform the French vodka label into a cultural phenomenon.
Diageo has faced significant reduction on sales this year with their annual report revealing that net sales of Cîroc in North America fell by 28% for the fiscal year ending June 2024. This decline in revenue could deter some potential buyers, though the brand’s strong legacy in nightlife may attract suitors looking for a turnaround opportunity. Combs’ legal troubles, have further complicated Cîroc’s image.
Diageo’s broader struggles have compounded the issues surrounding Cîroc. The company, known for brands like Johnnie Walker whisky and Smirnoff vodka, has been hit by a slowdown in demand for premium spirits in China and weaker sales across the Americas. This has posed a challenge for CEO Debra Crew, who took the helm last year. Under her leadership, Diageo has pursued a strategy of strategic divestments, including the sale of Pampero rum and Safari liqueur earlier this year.
