Diageo forms new joint venture with Combs

DRINKS company Diageo has formed a new joint venture with rap star Sean "Diddy" Combs and has bought the tequila brand DeLeon.

The 50/50 partnership between Diageo and Combs Wine & Spirits allows the brand to take advantage of Diageo's distribution network, together with Combs' star power in marketing luxury brands.

DeLeon has variants of tequila, which have suggested retail prices ranging from $US120 ($A135) to over $US1000.

In a statement on Wednesday, Combs says DeLeon appeals to "those who love exceptional tequila in a distinctive bottle".

Diageo also has a separate "strategic alliance" with Combs Enterprises to develop and grow the vodka brand, Ciroc.

The alliance began in 2007, and has grown from 50,000 cases a year to nearly two million cases.

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