Can Tequila prove to be another successful shot for Diageo and P Diddy?

Sean “Diddy” Combs has taken celebrity endorsement to a new level with his latest venture into the world of M&A. Late last week it was announced that the former rapper turned entrepreneur had entered into a joint venture with Diageo, the world’s leading premium drinks business, to acquire the luxury Tequila brand “Deleon”.  According to the press release, DeLeon is a 100 per cent blue weber agave boutique tequila brand (basically pure and unblended for the uninitiated tequila drinkers amongst us) and already has a “loyal following” in Hollywood and the US music industry, which given DeLeon has a recommended retail price of between USD 120.00 and over USD 1,000.00 per bottle (dependent upon your choice of variant) is not surprising.

But this isn’t the first collaboration between Diageo and the musician in the “high end” liquor space. Combs became the face of Ciroc Vodka back in 2007, but in that deal he agreed to a joint marketing and profit sharing deal which has seen Diageo’s annual vodka sales increase substantially over the last 6 years.

This time it would appear that Combs has been well advised as by entering into a JV to purchase the brand he will undoubtedly take a larger share of the spoils.