Diageo Explores Sale of Cîroc Vodka Brand, Engages with Potential Buyers - Bloomberg

Diageo Plc, the British beverages group, is considering the sale of the Cîroc Vodka brand, which was previously associated with music producer Sean "Diddy" Combs. According to reports, the company has reached out to potential buyers, including beverage companies and investment firms, to assess their interest. However, these discussions are still in the early stages and may not result in a transaction.

Diageo's exploration of the Cîroc sale comes after a lawsuit with Combs was resolved in January. Combs had accused the beverage company of neglecting both Cîroc Vodka and another liqueur brand, DeLeón Tequila, and claimed racial bias. He later withdrew his allegations, and their business relationship ended.

Diageo has refused to comment on the potential sale. The company, which also owns Johnnie Walker whisky, is divesting assets as part of its strategic portfolio management. In July, Diageo reached an agreement for the sale of Pampero rum and Safari-flavored liqueur.

The company faced challenges in the past year due to a slowdown in demand for premium drinks in China and weak sales across much of the Americas. This slowdown has posed difficulties for Chief Executive Debra Crew, who took office last year. Diageo's net sales for the fiscal year ending in June fell by 1.4%, and its shares have lost about 12% of their value on the London Stock Exchange this year.

The sale of Cîroc could be complicated by Combs' past association and declining revenue. According to Diageo’s annual report, net sales of Cîroc in North America dropped by 28% in the fiscal year that ended in June. However, the brand’s strong presence in nightclubs may attract some bidders who see potential for revival.

In addition to Cîroc, Diageo also owns other vodka brands such as Smirnoff and Ketel One.