Diageo swaps Ciroc rights for Lobos 1707 stake

Diageo has exchanged brand rights for its vodka brand Ciroc for a majority stake in Lobos 1707, a tequila brand backed by LeBron James, in a strategic joint venture with Main Street Advisors. This move comes after Ciroc experienced significant sales declines, with a 26% drop reported for the year ending June 2024, prompting Diageo to seek ways to enhance the brand's market presence. Under the new arrangement, Diageo will retain Ciroc's rights outside North America while focusing on maximizing its growth through the joint venture. The CEO of Diageo North America, Sally Grimes, expressed optimism about leveraging both brands' potential to shape culture and drive growth. LeBron James will maintain his investment in Lobos and gain stakes in Ciroc through this partnership. This joint venture aims to unlock new revenue opportunities and enhance brand resonance in the competitive spirits market.