Posted on | January 9, 2014
Written by | BevNetwork
Diageo, the world’s leading premium drinks business, and Sean Combs today announced that they have furthered their relationship by creating a new joint venture that has purchased luxury tequila brand DeLeón.
The joint venture, a 50/50 global partnership between Diageo and Combs Wine & Spirits, builds on a strategic alliance formed by Diageo and Combs Enterprises to develop and grow the Cîroc ultra-premium vodka brand. Since the alliance began in 2007, Cîroc has grown from just 50,000 cases a year into a nearly 2 million case brand. The DeLeón joint venture will 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.
DeLeón is a 100% blue weber agave boutique tequila brand with a loyal following in Hollywood and the U.S. music industry. The brand appeals to an important audience of status-conscious consumers who choose spirit brands as part of their luxury lifestyle. The acquisition of DeLeón will accelerate Diageo’s share of ultra-premium and above ($40+) tequila, which is the second-fastest growing tequila segment in the U.S., according to Nielsen.
DeLeón has five variants with current suggested retail prices that range from $120.00 to over $1,000.00 per bottle. The brand has been distributed in 18 U.S. states and Washington, D.C.