Diageo trades Cîroc stake for global Tequila push

Diageo has entered into a joint venture with Main Street Advisors, ceding majority ownership of Cîroc Ultra-Premium Vodka’s brand rights in North America in exchange for majority control of Lobos 1707 Tequila on a global scale. The deal brings together two formidable players from distinct arenas: Diageo, the spirits giant behind the likes of Johnnie Walker and Don Julio, and Main Street Advisors, the Santa Monica-based firm known for backing culturally astute ventures in sport, media and music. The aim? To supercharge Cîroc’s appeal to a new generation in North America and elevate Lobos 1707 from niche artisanal beginnings to global presence.

Balancing grapes and agave

Though it has often leaned into celebrity association and lifestyle positioning, Cîroc retains a strong claim to craftsmanship. Distilled from French grapes and rooted in a century of winemaking tradition, it sits at the more elegant end of the vodka category. Lobos 1707, on the other hand, is all about complexity and provenance, with its agave spirits aged in American oak and finished in PX Sherry casks — a nod to Spanish influence layered atop Mexican heritage. Under the JV, both brands are expected to retain their distinct identities. While Cîroc’s North American trajectory will now be managed through the new structure, Lobos 1707 stands to benefit from Diageo’s operational clout and route-to-market advantages across global territories.

Culture meets commerce

The deal may read as a textbook exercise in portfolio optimisation — Diageo sharpening its focus on tequila in light of booming category interest (34% household penetration in North America versus vodka’s 44%) — but it also reflects an understanding of how brands must resonate culturally to thrive. Enter Nick Tran, the JV’s newly appointed president and CMO. Formerly TikTok’s global head of marketing and known for connecting brands with Gen Z consumers, Tran is expected to bring a digitally native, culturally attuned approach. “We must reimagine storytelling and rethink engagement,” he says, hinting at ambitions far beyond the drinks aisle. With Tran’s leadership and cultural architect Diego Osorio (Lobos 1707 founder and chief creative officer) staying involved, the JV is positioned to trade not just in spirits, but in influence.

Financial implications

Though full financial details remain under wraps, the accounting implications are clear: Diageo will no longer consolidate Cîroc’s North American performance, instead treating it as income from a joint venture. This pivot aligns with Diageo’s Growth Ambition Strategy — placing bets on agility and long-term value over short-term control. Sally Grimes, CEO of Diageo North America, characterised the partnership as a cultural leap: “Together, we will unleash the full potential of the Cîroc brand for new generations.” Main Street’s Paul Wachter echoed the sentiment, noting the “new opportunities” now available to scale both brands “in ways that traditional models cannot achieve.”