Diageo trades Cîroc rights for Lobos 1707

Diageo has announced a strategic brand swap with US investment firm Main Street Advisors, exchanging the majority ownership of Cîroc vodka’s North American rights for a controlling stake in tequila brand, Lobos 1707, globally. The deal, structured as a joint venture between the two companies, marks a significant shift in Diageo’s portfolio strategy, although financial details were not disclosed.

The UK-based spirits giant had partnered with US musician Sean “Diddy” Combs in 2007 to promote Cîroc, helping to significantly boost the brand’s profile. The partnership ended in 2023 following a legal dispute, which was settled in January 2024. As part of the resolution, Diageo also took full ownership of DeLeón Tequila, another brand it had co-owned with Combs since 2013.

Under the new arrangement, Diageo will continue to own the rights to Cîroc outside North America. Meanwhile, its majority stake in Lobos 1707, an ultra-premium tequila brand founded in 2020, positions the company to deepen its footprint in the fast-growing tequila segment.

Commenting on the deal, Sally Grimes, CEO of Diageo North America, said the collaboration with Main Street Advisors creates a powerful platform for expanding Cîroc’s appeal to new generations while accelerating the global growth of Lobos 1707.