Diageo Trades Cîroc North America Rights for Global Tequila Brand Lobos 1707
In a bold portfolio shake-up, spirits giant Diageo has struck a strategic brand swap with U.S. investment firm Main Street Advisors, handing over majority control of Cîroc vodka in North America in exchange for a controlling global stake in Lobos 1707, the rising star of ultra-premium tequila.
This deal, structured as a joint venture, reflects Diageo’s pivot towards the booming tequila segment — one of the fastest-growing categories in the spirits world.
From Vodka Legacy to Tequila Future
Diageo’s journey with Cîroc began in 2007 when it teamed up with hip-hop mogul Sean “Diddy” Combs, transforming the vodka into a pop culture icon. That partnership officially ended in 2023 after a legal dispute, which wrapped up in early 2024. As part of the settlement, Diageo also secured full ownership of DeLeón Tequila, another high-profile brand once co-owned with Combs.
Now, the focus shifts to Lobos 1707, a tequila label founded in 2020 and already making waves in the premium spirits market. With this new arrangement, Diageo retains rights to Cîroc outside North America, while gaining deeper global control of Lobos 1707 — a strategic move to capture tequila’s surging global demand.
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A Power Move in the Spirits Game
“This collaboration with Main Street Advisors creates a powerful platform,” said Sally Grimes, CEO of Diageo North America. “It allows us to reintroduce Cîroc to new generations and, at the same time, turbocharge the global rise of Lobos 1707.”
Though financial details remain under wraps, the message is loud and clear: Diageo is betting big on tequila’s future — and shaking up the spirits industry while they’re at it.
