Diageo is exploring the sale of Cîroc Vodka following its severed ties with Sean "Diddy" Combs and declining sales performance. The London-based spirits giant has begun reaching out to potential buyers, including beverage companies and buyout 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
• Multiple 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's overall performance has faced challenges, with:

• 1.4% drop in net sales in the last fiscal year
• 12% decline in company shares on London trading
• Decreased demand for high-end spirits in key markets like China and the Americas

While Diageo maintains other vodka brands like Ketel One and Smirnoff, Cîroc's future remains uncertain. The brand's strong nightclub presence could attract buyers interested in a potential turnaround, despite its current challenges and association with Diddy.

This move aligns with Diageo's broader portfolio management strategy, which recently included the sale of other brands such as Pampero Rum and Safari flavored liqueur.

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