In a strategic move to realign its portfolio with shifting consumer preferences, Diageo is trading majority rights to the Cîroc vodka brand in North America for a controlling global stake in the fast-growing tequila label, Lobos 1707. The exchange is part of a joint venture with Main Street Advisors, a U.S.-based investment firm with a reputation for backing culture-forward brands. Diageo’s longtime relationship with music mogul Sean “Diddy” Combs, who helped build Cîroc’s prominence, came to a close last year following a legal dispute, clearing the path for this brand overhaul.
Cîroc has faced declining fortunes in recent years, with net sales plunging by over 30% in the last half of 2023. Despite once being a pop culture staple, the vodka brand has struggled to maintain relevance in a spirits market that increasingly favors tequila. Lobos 1707, backed by LeBron James and founded just five years ago, has captured the spotlight with its premium range of tequilas and growing presence beyond the U.S., including a recent debut in the UK. Diageo appears to be hedging on this shift, doubling down on agave-based spirits to drive future growth.
The new venture is positioning itself as a next-gen spirits platform, with former TikTok marketing executive Nick Tran stepping in as president and CMO. With digital engagement and consumer storytelling at its core, the partnership aims to reimagine how modern drinkers connect with brands. “It’s not just about what’s in the bottle anymore,” said Tran. “It’s about how brands live in culture, how they show up in digital spaces, and how they build community.” Diageo’s pivot signals more than a brand swap — it’s a statement on where the liquor world is headed.
“Your donation helps us cover global events, ensuring everyone stays informed.”
(Source: The Spirit Business | Global Drinks Intel | Financial Times)
