FDBusiness.com

Diageo and Combs Form New Joint Venture and Acquire Deleon Tequila

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

Diageo and Combs Form New Joint Venture and Acquire Deleon Tequila

Diageo and Combs Form New Joint Venture and Acquire Deleon Tequila
January 09
14:29 2014

Diageo has taken a major step in reclaiming leadership of the tequila sector in North America after forming a joint venture with Combs Wine & Spirits, which has acquired prestige tequila brand DeLeon.

The joint venture, a 50/50 global partnership between Diageo and Combs Wine & Spirits, headed by Sean Combs, builds on the separate strategic alliance formed by Diageo and Combs Enterprises to develop and grow the Ciroc ultra-premium vodka brand. Since the alliance began in 2007, Cîroc has grown from just 50,000 cases a year into a nearly 2 million case brand.

The joint venture acquisition of DeLeon will allow the brand to benefit from Diageo’s strong distribution network, supply chain, and marketing capability and Combs’ access to influencers and proven track record of marketing luxury lifestyle brands.

DeLeon is a 100% blue weber agave boutique tequila brand with a loyal following in Hollywood and the US music industry. The brand has strong appeal with status-conscious consumers who choose spirit brands as part of their luxury lifestyle.

The acquisition of DeLeon will accelerate Diageo’s share of ultra-premium and above ($40+) tequila, which is the second-fastest growing segment of the tequila category in the US. DeLeon has five variants with suggested retail prices ranging from $120.00 to over $1,000.00. The brand has been distributed in 18 US states and Washington, DC.

“The joint venture with Combs Wine & Spirits and its purchase of DeLeon is Diageo’s latest step towards returning to a leading position in tequila in North America,” says Larry Schwartz, president of Diageo North America. “Expanding our relationship with Sean Combs into tequila was a natural choice given Sean’s ability to galvanise support for luxury brands, as we’ve seen with our work together on Ciroc. Ultra-premium and above tequila is a very exciting segment – we already have a strong brand there with Don Julio and are pleased to complement that offering with DeLeon.”

“DeLeon is an outstanding brand that appeals to those who love exceptional tequila in a distinctive bottle. Together with Diageo, we will take DeLeon to new heights,” says Sean Combs, chairman of Combs Wine & Spirits.

CAPTION:

Larry Schwartz, president of Diageo North America, and Sean Combs, chairman of Combs Wine & Spirits.

About Author

mike

mike



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements