Diddy's dispute with spirits company intensifies as court unseals business details

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The dispute between Diddy and spirits seller Diageo stems from a failed partnership to promote Diddy's DeLeon tequila brand. Combs claims Diageo positioned his tequila as an inferior 'urban' brand and limited its distribution.

. In late June, it asked the court to compel arbitration or dismiss the suit. It is also in the process of terminating a partnership between Combs and Ciroc vodka, a brand he had promoted since 2007.

In 2021, Combs said he was informed that all of Diageo’s agave plants were allocated to other brands, forcing DeLeon to scramble to find suppliers in the more expensive spot market. Combs says Diageo also made unilateral decisions that harmed the brand, including discontinuing popular 375-millileter "half bottles" and launching a redesigned bottle with no marketing support.

In response, Diageo pointed out that Combs supported and endorsed Ciroc Summer Watermelon for several years. In his lawsuit, Combs said he only signed on to promote Ciroc Summer Watermelon after educating the company about watermelon and getting assurances from Diageo that it would be sensitive to any negative connotations. Combs also differentiated Ciroc — which has more than a dozen flavors — from DeLeon, which would have introduced watermelon as its first flavor.

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