Dive Brief:
- Sean "Diddy" Combs and liquor giant Diageo PLC have entered a 50-50 joint venture to acquire luxury tequila brand DeLeon.
- The deal puts the considerable marketing power of Combs behind what can't be an easy sell—DeLeon sells for more than $100 a bottle and is available in only 18 states.
- The deal isn't the first for Diageo and Combs. The two combined forces to promote Ciroc vodka—a marketing venture that has led to a 40-fold increase in sales.
Dive Insight:
We wouldn't bet against Combs. He seems to have a feel for how to exploit that sad, let's-act-as-if-we're-rich sensibility that permeates much of American culture. No doubt loads of people who can't afford luxury tequila will now start buying the stuff.
At that same time, we would be remiss if we didn't mention that while Combs is the epitome of what success looked like in the past two decades, our sense is that things are changing. Young consumers seem far less interested in the grotesque world of over-the-top consumption that marked the rapper/Wall Street era. So don't look for us to buy DeLeon or to listen to Diddy or Puff Daddy or whatever he calls himself now. We'll be hanging out with the young folks, drinking the cheap stuff and listening to Lorde.