Diageo has announced the formation of a joint venture with Sean Combs to acquire luxury tequila brand DeLeon.
The global partnership builds upon a strategic alliance formed by Diageo and Combs in 2007, it is reported. The two came together to purchase the ultra-premium vodka brand Ciroc, growing sales from a 50,000 cases a year to nearly two million.
The partnership is now aiming to leverage Diageo’s distribution network, supply chain and marketing capability with Combs’s ability to market luxury lifestyle brands in order to achieve the same success with DeLeon, Diageo said.
Larry Schwatrz, President of Diaego North America, stated: “Expanding our relationship with Sean Combs into tequila was a natural choice given Sean’s ability to galvanise support for luxury brands, as we’ve seen with our work together on Ciroc. Ultra-premium and above tequila is a very exciting segment.”