Diageo Buys Tequila Brand DeLeon with US Rapper Diddy
Diageo Buys Tequila Brand DeLeon with US Rapper Diddy
Britain's Diageo, the world's biggest producer of alcoholic drinks, announced Wednesday that it has joined forces again with US rapper Sean "Diddy" Combs to buy luxury tequila brand DeLeon.
Diageo said in a statement that it has created a 50:50 joint venture with Combs Wine & Spirits that has acquired tequila DeLeon, which has a loyal following in Hollywood and the US music industry.
A Diageo spokewoman added that the group has purchased DeLeon from US-based Quench Enterprises for an undisclosed sum.
The so-called ultra-premium tequila is priced from $120.00 to over $1,000 per bottle, and is distributed in 18 US states and Washington DC.
"The joint-venture acquisition of DeLeon will allow the brand to benefit from Diageo's strong distribution network, supply chain, and marketing capability and Sean Combs' access to influencers and proven track record of marketing luxury lifestyle brands," said Diageo.
The London-listed company added that the move would accelerate its share of ultra-premium tequila, which costs more than $40 per bottle and is the second-fastest growing segment of the US tequila market.
Diageo had already formed a strategic alliance with Combs in 2007 to develop and grow the Ciroc premium vodka brand.
"Celebration is a cornerstone of all my businesses, and this joint venture is a natural extension of that portfolio," said music producer Combs, who is also chairman of Combs Wine & Spirits.
Larry Schwartz, President, Diageo North America, added in the statement that the rapper was a "natural choice" for DeLeon.
"The joint venture ... is Diageo's latest step towards returning to a leading position in tequila in North America," said Schwartz.
Source: The Economic Times
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