Diddy To Lose Booze Business If Assault Charges Stick
Sean “Diddy” Combs‘ alleged kettlebell swing at UCLA strength training coach Sal Alosi, can have serious implications for his investment in Diageo brands Ciroc Vodka and DeLeon Tequila. According to state and federal laws, anything heavier than a misdemeanor conviction may mean surrendering his shares in the brands that make up the bulk of Combs’ accumulated wealth, to comply with the Alcohol and Tobacco Tax and Trade Bureau.
n 2007, in partnership with Diageo, Mr. Combs agreed to help develop the Ciroc vodka brand for a 50 percent share of the profits. Reuters recently reported that since 2007, the company had seen a “40-fold rise in annual sales volumes for the brand’s products.” (That translates to nearly 2 Million cases a year.)
Additional Diddy deals came in January 2014, when Diageo and Mr. Combs partnered to acquire what Forbes magazine described as “prestige tequila brand DeLeón.” As Forbes said at the time, “Both sides invested cash to make the purchase, and Diddy, via his newly-formed Combs Wine & Spirits, will be an equal partner with Diageo in equity terms.”
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