Diageo was formed in 1997 from the merger of Guinness and Grand Metropolitan. Diageo Also owned Pillsbury and Burger King before selling them both. In late 2007, Diageo inked a marketing deal with Sean “P Diddy” Combs, to push Ciroc an “ultra premium” vodka. According to The Financial Times, Combs gets a 50-50 split of the profits on Ciroc sales.
P Diddy helped brand Cîroc and increased its revenues 131% percent in the US. P Diddy became more than a frontman for Ciroc. In exchange for a 50-50 split of the profits on Ciroc sales, he developed the branding and positioning for the vodka.
In the first six months of 2007, before Diddy signed on, Diageo sold 60,000 cases of Ciroc. The following year, sales grew to approximately 169,000. In the full year ended June 2009, volume spiked to 400,000 cases. Sales rose another 48 per cent in fiscal 2010, according to Diageo’s earnings statements P Diddy receives a double-digit millions annually as a share of profits. Sales of the spirit spiked 122% last year in the wake of strong demand for new flavor Ciroc Peach. P Diddy is entitled to a nine-figure chunk of cash if the flavor Ciroc Peach is ever sold.
Last month Diddy snaps photos of himself and his helicopter landing on the rooftop of Diageo Norwalk’s office building. That’s Big!! — Futuristic Blogger
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