Diageo is exploring the potential sale of Cîroc Vodka following its severed ties with Sean "Diddy" Combs, who previously served as the brand's primary ambassador. The London-based spirits company has begun reaching out to potential buyers, including beverage companies and private equity firms.

The decision comes after several significant developments:

• A settled lawsuit where Combs accused Diageo of racism regarding the handling of Cîroc Vodka and DeLeón Tequila
• Recent sexual abuse allegations and lawsuits against Combs
• Combs' arrest by federal agents on racketeering and sex trafficking charges
• A 28% decline in Cîroc's North American net sales for the fiscal year ending in June

Diageo faces additional challenges, including:

• Overall company net sales drop of 1.4% in the last fiscal year
• 12% decline in Diageo's London stock trading value
• Decreased demand for high-end spirits in key markets like China and the Americas

Despite these setbacks, Cîroc maintains a strong presence in the nightclub scene, potentially attracting buyers interested in a brand turnaround. Diageo continues to own other successful vodka brands, including Ketel One and Smirnoff, and has recently sold other assets like Pampero Rum and Safari flavored liqueur as part of its strategic portfolio management.

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