Diageo swaps US Cîroc rights for stake in LeBron James’ Lobos 1707 tequila

Diageo has traded the rights to its Cîroc vodka brand in North America for a majority share of LeBron James’ Lobos 1707 tequila and mezcal brand.

The strategic joint venture with investment and advisory firm Main Street Advisors would build on “the existing strength of two premium brands with strong trademarks and artisan roots”, said Diageo.

It would combine “Diageo’s unmatched route-to-market, supply chain, and marketing sophistication, with Main Street Advisors’ proven track record of investing in, incubating, and accelerating culturally disruptive consumer businesses”, the supplier added.

Diageo will retain the rights to Cîroc in global markets including the UK.

Read more: Diageo’s Cîroc problem shows why celebrity tie-ups carry risk as well as reward

The booze giant was understood to have been seeking a buyer for the vodka brand, which has seen its reputation tarnished by previous associations with disgraced rapper Sean ‘Diddy’ Combs. The hip-hop mogul is currently incarcerated and accused of charges including sex trafficking and racketeering.

Diageo cut ties with Combs in 2023, having previously partnered with the artist to launch Cîroc and DeLeón Tequila.

“Cîroc and Lobos 1707 have incredible potential, and through this collaboration, we are unlocking new opportunities to accelerate their reach, resonance, and revenue growth in ways that traditional models cannot achieve,” said Paul Wachter, founder and CEO at Main Street Advisors.

Sally Grimes, CEO at Diageo North America, added: “We’re thrilled to bring together two great brand builders, Diageo and Main Street Advisors, to shape culture in new and meaningful ways. The Main Street Advisors track record speaks for itself and together, we will establish a strong platform to unleash the full potential of the Cîroc brand for new generations and to drive the next phase of growth for Lobos 1707.”

Lobos 1707 was set up in 2020 by actor and entrepreneur Diego Osorio. US basketball player LeBron James was an early stage investor in the brand, which is mostly sold in North America but also available in the UK via Selfridges and Master of Malt.

It ages its agave spirits in American oak barrels and finishes them in Pedro Ximénez Sherry wine barrels.