Ciroc Vodka Taking New Approach

Ciroc Vodka announced a partnership with PDiddy, giving up branding and marketing controls to Puffy in an effort to align the Vodka with on of the biggest names in Hip-Hop and differentiate the brand from the stiff competition (no pun intended) within the hard alcohol category. The partnership gives partial ownership to PDiddy (possibly 50%) in a deal structure similar to 50 Cent's arrangement with Glaceau's Vitamin Water that left the rapper cashing in after Glaceau was sold to Coca-Cola.

This type of deal structure is a great opportunity for the brand and the celebrity to build on the strengths of the celebrity with not having to create a new brand, utilize previous brand recognition and established distribution. As compared to Trump branded Vodka, this partnership will allow those who don't associated with PDiddy to still resonate with the brand and enjoy the vodka, while at the same time, the association with PDiddy will strengthen the brands presence within the party/club lifestyle.

Unfortunately, Ciroc also gave up marketing and branding control to PDiddy, which has been disastrous at best with his last attempt.

These types of partnerships are becoming more common place, the afore mentioned 50 Cent deal as well as David Beckham not resigning with Gillette because he wanted more than just an endorsement deal, i.e. partial ownership or revenue sharing. I am surprised that Ciroc gave up 50% ownership in the Vodka, but I would expect to see more partnership arrangements like this one in the future.