Partnering with Lobos 1707 could be a game-changing strategy for Diageo to reclaim its footing in the competitive spirits market!
Teaming up with Lobos 1707 is a bold move for Diageo to shake things up in the tequila scene!
In the face of intense competition in the alcoholic beverage market, Diageo Plc, one of the leading global companies in alcohol production, has announced the creation of a joint venture with the tequila brand Lobos 1707. This move comes as part of the company’s efforts to enhance its market position, particularly following recent challenges related to declining sales and legal disputes with renowned music mogul Sean "Diddy" Combs.
In recent years, the Ciroc vodka brand, owned by Diageo, has faced several challenges, including a downturn in sales. To adapt to these new conditions, the company leadership decided to collaborate with Lobos 1707. This partnership aims not only to alleviate pressure from the vodka brand but also to diversify the company’s product portfolio among alcoholic beverage producers.
Key reasons for the joint venture include:
Desire to boost sales volume;
Need for innovative strategies and new products;
Elimination of negative reputation stemming from legal disputes.
Founded in 2020, Lobos 1707 has quickly gained popularity among premium tequila enthusiasts. The brand was established by actor Diego Osorio, who combines traditional production methods with a modern approach to create unique products that meet consumer demands.
The backing of celebrities like LeBron James adds extra weight to this brand, aligning with Diageo’s strategy to attract a younger audience.
The joint venture between Ciroc and Lobos 1707 opens up new opportunities for both parties. Key benefits include:
Expansion of product range to align with current trends;
Increased reach to target audiences;
Opportunity to transform brand image.
The joint venture will be managed by Main Street Advisors Inc., an investment company with extensive experience in managing celebrity wealth. Paul Wachter, who heads the firm, possesses significant expertise in this area and will aid in establishing effective management of the joint business.
Key tasks for a successful launch:
Developing a marketing strategy;
Establishing partnerships with distributors;
Evaluating financial risks and opportunities.
According to expectations, the creation of a joint venture with Lobos 1707 will not only help Diageo restore Ciroc's market position but also establish a stronger presence in the premium spirits segment. This indicates that the company is focused on long-term prospects and is prepared to implement changes that meet modern consumer demands.
The formation of a joint venture between Diageo and Lobos 1707 represents a strategic step aimed at restoring and strengthening market positions for both vodka and tequila. By concentrating efforts on innovative products and applying effective management strategies, both companies can look forward to a successful future in the alcoholic beverage industry.
