In June 2023, the drinks giant ended its partnership with Diddy after the music mogul — in a lawsuit –accused the firm of neglecting his tequila brand due to his race.
Combs sued Diageo in May, claiming the firm did not make promised investments in Ciroc and DeLeon and treated them as inferior “urban” products.
In court filings, Combs alleged Diageo leadership told him race was one of the reasons it limited distribution to “urban” neighborhoods.
Diageo, which owns more than 200 brands including Guinness beer and Tanqueray gin and Johnnie Walker, however, denied the claims.
It said their relationship had been on the rocks since Diddy allegedly failed to meet his promises to fund DeLeon Tequila, which they bought together in 2013.
Diageo said it had invested more than $100 million in DeLeon Tequila and “tried for years to salvage the broken relationship with Mr Combs”.
“Despite having made nearly a billion dollars over the course of our 15-year relationship, Mr Combs contributed a total of $1,000 and refused to honor his commitments,” the company said.
But in a joint statement on Tuesday, Combs and Diageo agreed to resolve all disputes between them.
Consequently, Diageo is now the sole owner of Ciroc vodka and DeLeon tequila, two brands Combs had part-owned and promoted in the past.
“Sean Combs and Diageo have now agreed to resolve all disputes between them. Mr. Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice,” the statement reads in part.
“Diageo and Mr. Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón tequila, which Diageo now solely owns.”
Last December, Empower Global, a company founded by the singer, was dropped by 18 companies following several sexual assault allegations against him.