Diageo, a big British drinks company, is thinking about selling Cîroc Vodka, a popular brand that was once promoted by music star Sean ‘Diddy’ Combs. They have reached out to other companies and investment firms to see if they are interested, but these talks are just starting and might not lead to a sale.
This decision comes after Diageo settled a lawsuit with Diddy in January. He had claimed that the company was unfair and ignored Cîroc, but later dropped the accusations, ending their business relationship. Diddy has faced several serious allegations in the past, including charges related to racketeering and sex trafficking.
Diageo, which also owns popular drinks like Johnnie Walker whisky, has faced challenges recently. Their sales dropped by 1.4% and their stock price has fallen by around 12% in London this year. One of the issues is a decrease in demand for premium drinks in China and some weakness in sales across the Americas.
Sales of Cîroc have dropped significantly, by 28% in North America just last year. However, because Cîroc is popular in nightclubs, some buyers might see an opportunity to turn the brand around.
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