Diageo ditches US rapper Diddy over brand neglect and racism claim
Sean “Diddy" Combs attends the 2022 iHeartRadio Music Festival at T-Mobile Arena on September 24, 2022 in Las Vegas, Nevada. (Photo by Gabe Ginsberg/Getty Images)
Drinks giant Diageo on Wednesday said it had ended its relationship with Sean "Diddy" Combs after the US rapper accused it of neglecting their business agreement and racism.
Combs, also known by his stage names Puff Daddy, P. Diddy and Diddy, claimed in a New York court filing on June 1 that the UK-based firm failed to invest in his liquor brands because he is black.
Diageo "kneecapped" his Ciroc Vodka and DeLeon Tequila brands by depriving them of resources after they were "typecasted" as "black brands" meant for "urban" consumers, he alleged.
The British multinational at the time responded by saying it was "saddened" that the 53-year-old rapper, actor and producer had misrepresented a business dispute.
On Wednesday, a Diageo spokesperson said: "Mr Combs' bad-faith actions have clearly breached his contracts and left us no choice but to move to dismiss his baseless complaint and end our business relationship.
"Mr Combs has repeatedly undermined our partnerships and threatened to publicly defame Diageo if we did not meet his unreasonable financial demands."
Diageo was committed to the success of Combs' brands and invested more than $100 million in them to grow them, the spokesperson said.
The drinks firm announced in 2014 that it had created a 50:50 joint venture with Combs Wine & Spirits, after its acquisition of luxury tequila brand DeLeon, which is popular in Hollywood.
They formed a strategic alliance with Combs in 2007 to develop and grow Ciroc.
But the spokesperson added: "Despite having made a billion dollars over the course of our 15-year relationship, Mr Combs contributed a total of $1,000 and refused to honour his commitments.
"We have exhausted every reasonable remedy and see no other path forward."
There was no immediate response from Combs.
Combs' legal action claimed that Diageo paid more attention and offered better support to other celebrity backed brands such as George Clooney's Casamigos and Ryan Reynold's Aviation Gin, and failed to meet its promises to invest in his.
"Diageo has treated Mr Combs and his brands worse than others because he is black," the filing stated.
A new report from the Association of Convenience Stores (ACS) celebrates the vital role of the UK’s nearly 19,000 rural convenience stores, highlighting their significant investment, community contributions, and diverse services.
This recognition, however, comes despite the considerable challenges these businesses face. The 2025 Rural Shop Report, released today (29 January), details how rural retailers positively impact their communities and argues for increased government support to ensure their continued success.
Key findings from the report underscore the importance of these stores: they provide secure, flexible employment for over 178,000 people; 40 per cent are the sole convenience store in their area, serving as a lifeline for residents; they generated £18.5 billion in sales last year; and rural retailers have collectively invested over £240 million in their businesses over the past year to better serve their communities.
The report highlights the unique challenges that rural retailers face compared to their more urban counterparts, including a lack of connectivity, issues with the cost and availability of deliveries, theft and other retail crime, and more.
Hopes of Longtown, featured in the report, is an award-winning village shop and post office at the foot of the Black mountains in Hereford, is a case in point. The shop currently receives 100 per cent discretionary business rates relief from the local council because of its status as the only shop in the village, but owner Christine Hope is concerned that this could be dropped as councils deal with growing budget deficits.
“Hundreds of thousands of people in isolated areas across the UK rely on their local shop to provide them with the products and services that they need. If rural shops aren’t able to survive, invest and adapt, nobody will step in the host the post office, offer other essential services and promote the human interaction and social glue that binds those communities,” ACS chief executive James Lowman commented.
“These shops need to be supported by both local and national policymakers at a time when costs are rising significantly as a result of the Budget. We are calling on all MPs in rural constituencies to commit their support for the rural shops that trade at the heart of their communities.”
There has been a major increase in sales of no and low alcohol products over the past 12 months, shows recent data, suggesting that uptake of mindful drinking is no longer contained to Dry January.
Sales data from Ocado Retail shows that customers have been consistently searching for alcohol free prosecco, no/low ready to drinks, and no/low beer over the past 12 months as consumers adapt their drinking habits.
Research among more than 2,000 consumers conducted by Savanta alongside Ocado Retail suggests that Dry January as an event is more popular with younger consumers, while older customers are reducing their alcohol consumption for more holistic healthcare reasons.
Nearly half (45 per cent) of 18-34 year olds have taken part in Dry January at some point, compared to just 31 per cent of 35-54 year olds and 10 per cent of those aged over 55.
However, half (50 per cent) of 35-54 year olds say they have reduced their alcohol consumption over the past few years and a third (32 per cent) have given up drinking alcohol entirely.
For those aged 55 and over, 41 per cent have reduced their alcohol intake and a quarter (24 per cent) no longer drink at all. A desire to lead healthier, more balanced lifestyles and the improved range of no and low products have been key to middle-aged and older consumers pursuing more mindful drinking habits year-round.
41 per cent of those aged 35 and over said improving their overall physical health was their main priority, while more than a quarter (27 per cent) have opted for it to aid weight loss.
Products that have seen particularly large year-on-year increases include Thatchers Zero Alcohol Free Cider (+90 per cent), Tanqueray Alcohol Free 0.0 % Spirit (+32 per cent) and Adnams Ghost Ship 0.5% (+22 per cent), suggesting that the increased range of no and low beverages on offer is helping to convert customers into trying non-alcoholic versions of their favourite drinks.
Despite this shift towards a more consistent period of mindful consumption, Dry January remains a key sales period for no and low products. At Ocado, sales of no and low beer (+46 per cent), spirits (+13 per cent), and ready-to-drink cocktails (+31 per cent) are all significantly up this January compared to the same period last year.
Shauna Clark Fitzpatrick, no & low buyer at Ocado Retail, said, “Consumers of all ages are becoming more mindful of their drinking habits, some prompted by Dry January and others by longer term lifestyle considerations throughout the year.
"Both our alcoholic and no and low ranges continue to grow significantly, launching nine new products this month, making it easier than ever for our customers to find a beverage that suits their need whilst bringing innovative and exciting flavours.”
The Portman Group has announced the appointment of Nick Baird as its new Chair.
As a former senior diplomat and business leader, Nick has a wealth of experience with an impressive career spanning thirty years in government and several more in the private sector.
During his 30 years in government, Nick was Chief Executive of UK Trade and Investment, Ambassador to Turkey, and Foreign and Commonwealth Office Director General Europe and Economic, as well as serving in various other posts in Europe and the Middle East. Most recently, he has been Chair of the Trade Remedies Authority and Chair of the charity, Carers UK.
During his time in the private sector, Nick was Group Corporate Affairs Director of the international energy company Centrica for 8 years, as well as a Non-Executive Director of the international education company, Nord Anglia
The Portman Group’s independent Chair is responsible for chairing the Council which comprises the CEOs of the 18 member companies who fund the self-regulatory system.
Nick was chosen from a strong field of candidates and the Portman Group was assisted in the selection by Spencer Stuart.
Nick will replace outgoing Chair Philip Rycroft who is stepping down after five years in post. Nick will formally take up the role on 1 February.
“I’m thrilled to be joining the Portman Group as their new Independent Chair and excited to work closely with the team to bring our member companies together and further encourage responsible best practice across the industry," said Baird. "The Portman Group has a remarkable record of highly effective self regulation over the last 30 years and as a big supporter of corporate social responsibility I’m looking forward to getting to work.”
Matt Lambert, Chief Executive of the Portman Group added: “I’m delighted to welcome Nick as our new Chair, and have no doubt with his vast and impressive experience across government and the private sector that he will bring a huge amount of insight to the alcohol industry. I would like to also take this opportunity to say a big thank you to our departing Chair Philip Rycroft who has made an incredible impact during his five years at the Portman Group.”
Wholesalers will soon be receiving WhatsApp updates from Sugro UK as the leading buying group has now launched a new service for its members.
The closed group is exclusively for Sugro’s wholesale members and is using b2b.store’s WhatsApp Business API service, ProConnect, to share messages about important news, deals and other communications.
While other buying groups have free member WhatsApp groups, Sugro has chosen to launch a paid-for channel to benefit from ProConnect’s B2B-tailored functionality, greater security and professional tools, including message scheduling and audience segmentation.
One of the biggest benefits of using a paid-for channel rather than a free solution is that it’s a one-way WhatsApp messaging environment – meaning there’s no need to monitor the channel or change current methods of member feedback.
All ProConnect WhatsApp channels are managed from a dashboard that’s accessible by login on all desktop and handheld devices, allowing multiple Sugro employees to use and send messages to members on their new channel.
"We see this use of WhatsApp as a smart way of enhancing our member communications and are excited to get our new channel live,” says Head of Commercial and Marketing Yulia Petitt.
“We will be using this to send all Sugro members updates on key suppliers, NPDs, incentives, prize draws and more, providing them with everything they need to know in a digestible format in WhatsApp, where most communications now happen.
“The speed that messages are read is also a big draw for us, with WhatsApp achieving much higher open rates – in a much quicker time – than alternatives such as email and SMS.”
Sugro already uses WhatsApp within its membership in a different way, with a retailer channel for wholesale members’ customers that sends deals and incentives from Sugro’s eLoyalty scheme.
This is soon to be expanded to include the eLoyalty Extra Compliance and Execution scheme, which will allow retailers to capture evidence of compliance in WhatsApp by tapping ‘take photo’ and sending to be approved.
“This is another exciting WhatsApp development that Sugro is leading the way on once more,” Petitt added.
“The eLoyalty Extra aims to boost compliance and execution in our members’ retail stores to drive new product launches and core-range compliance – all without leaving a WhatsApp message, thanks to ProConnect and b2b.store.”
Keep ReadingShow less
Ferrero Group has signed an agreement to acquire Power Crunch from Bio-Nutritional Research Group
Snacking major Ferrero Group said it has signed an agreement to acquire Power Crunch from the US-based Bio-Nutritional Research Group.
Founded in 1996, Power Crunch has seen strong growth recently driven by its portfolio of popular protein snacks, including a variety of wafer bars as well as high-protein crisps, which launched in 2024.
“We're thrilled to welcome Power Crunch to the Ferrero family and our ever-expanding portfolio of products in the US,” said Michael Lindsey, president and chief business officer of Ferrero North America.
“The quality craftsmanship and thoughtful investment Ferrero applies to our portfolio has driven our success across categories. We look forward to applying the same formula to the better-for-you category, starting with the distinctive products produced by the exceptional Power Crunch team.”
As part of the transaction, Ferrero will take over an office site in Irvine, California, with approximately 50 employees joining the Ferrero Group in North America.
“Power Crunch joining Ferrero is an amazing opportunity," said Kevin Lawrence, Power Crunch founder and chief executive. “The company's commitment to quality and ambitions in the better-for-you snacks category will help bring Power Crunch to more consumers than ever before.”
Ferrero, whose brands include Nutella, Kinder and Tic Tac, said the planned acquisition further supports its expansion in the better-for-you product category, following the acquisitions of FULFIL and Eat Natural in Europe.
It is also the latest in a series of acquisitions growing Ferrero's footprint in the US, following the integration of everyday chocolate brands Butterfinger, Baby Ruth, and CRUNCH as well as cookie brands Keebler, Famous Amos, and Mother's. Iowa-based ice cream company Wells Enterprises joined Ferrero Group in 2022.
The transaction is expected to close in the coming weeks, subject to customary closing conditions, the company said.