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Diageo has exchanged its majority ownership of the Cîroc Ultra-Premium Vodka brand rights in North America for majority ownership interest in Lobos 1707 Tequila.

The equity swap deal forms part of a joint venture between the alcohol giant and investment firm Main Street Advisors, in line with Diageo’s long-term growth strategy.

It combines Diageo’s route-to-market, supply chain and marketing expertise with Main Street Advisors’ track record of investing in and building brands. The joint venture will oversee the Cîroc brand in North America and the Lobos 1707 brand worldwide.

In a statement announcing the deal, Diageo said it aims to build on the strength of two premium brands with strong trademarks and artisan roots. Cîroc vodka is distilled from French grapes, built on over a century of winemaking expertise, while Lobos 1707 ages its agave spirits in American oak barrels and finishes in Pedro Ximénez (PX) Sherry wine barrels.

While tapping into the strategic resources of the joint venture, both brands will maintain their ‘distinct identities, consumer appeal and leaders,’ Diageo confirmed, including Diego Osorio, founder and chief creative officer of Lobos 1707.

Nick Tran, former global head of marketing at TikTok and an angel investor in consumer brands, has been appointed as president and chief marketing officer for the JV, praised by Diageo for his reputation for ‘transforming brands into cultural icons’ and developing consumer and digital strategies focused on Gen Z audiences.

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

Sally Grimes, CEO of Diageo North America, said: “We’re thrilled to bring together two great brand builders, Diageo and Main Street Advisors, to shape culture in new and meaningful ways”.

She added: “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”.