Diageo has taken majority ownership of Lobos 1707 Tequila in exchange for the brand rights of Cîroc Vodka in North America.

The drinks giant has announced a strategic joint venture with investment and advisory firm Main Street Advisors that combines Diageo’s route-to-market, supply chain and marketing with Main Street’s prowess in investing in, incubating, and accelerating culturally disruptive consumer businesses.

The joint venture will involve Diageo exchanging majority ownership of Cîroc Ultra-Premium Vodka’s brand rights in North America for a majority ownership interest in Lobos 1707 worldwide.

Cîroc Vodka is distilled from fine French grapes, deriving its inspiration from more than a century of winemaking expertise.  Diageo settled a lawsuit with former Cîroc marketing partner Sean ‘P Diddy’ Combs in January 2024.

Lobos 1707 ages its agave spirits in American oak barrels and finishes in Pedro Ximénez (PX) Sherry wine barrels. The tequila is backed by American basketballer LeBron James.

Nick Tran has been appointed as President and Chief Marketing Officer for the joint venture. As the former Global Head of Marketing at TikTok, and an angel investor in consumer disruptor brands, Tran has a reputation for transforming brands into cultural icons and developing consumer and digital strategies focused on Gen Z audiences.

“The way modern consumers engage with spirits continues to evolve. That requires brands to evolve at the same pace,” Tran said.

“Today, social experiences are more intentional, digital spaces drive discovery, and transparency matters more than ever. To grow brands, we must reimagine storytelling, rethink engagement, and create experiences that are much bigger than just the liquid.”

Within the joint venture, Cîroc vodka and Lobos 1707 tequila will each maintain their distinct identities and consumer appeal and leaders, including Founder and Chief Creative Officer of Lobos 1707 Diego Osorio.

Diageo North America Chief Executive Officer Sally Grimes said: “We’re thrilled to bring together two great brand builders, Diageo and Main Street Advisors, to shape culture in new and meaningful ways. The Main Street Advisors track record speaks for itself and together, we will establish a strong platform to unleash the full potential of the Cîroc brand for new generations and to drive the next phase of growth for Lobos 1707.”

Main Street Advisors founder and Chief Executive Officer Paul Wachter said: “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.”