Diageo to Trade Cîroc North America for Lobos 1707 in Strategic Joint Venture With Main Street Advisors

On Monday, Diageo announced a new strategic joint venture with Santa Monica, Calif.-based investment and advisory firm Main Street Advisors.

Within the deal, Diageo will exchange majority ownership of Cîroc Ultra-Premium Vodka’s North American brand rights in exchange for the worldwide brand rights to Lobos 1707. According to a press release, the equity swap exchange is intended to maximize the value of both brands, which will both maintain their brand identities.

“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,” Main Street Advisors founder and CEO Paul Wachter said in the release.

The news arrives roughly four months after the London-based beverage conglomerate was rumored to be gauging interest from other companies regarding a Cîroc acquisition. In 2007, four years after the ultra-premium vodka brand was founded, it became the subject of a joint venture between Diageo and Sean “Diddy” Combs. The partnership was terminated in June 2023 following a high-profile lawsuit alleging Diageo’s failure to promote Cîroc vodka and DeLeón tequila, another joint venture between the rapper and the conglomerate. The two settled the lawsuit out of court in January 2024 and Combs was removed from any further involvement in both brands.

Now, Lobos 1707 will join DeLeón, as well as Astral, Casamigos, Don Julio, and flavored tequila brand 21 Seeds, under Diageo’s tequila umbrella.

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

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