By: Angelique Brenes for KTLA
Diageo, one of the world’s largest alcoholic beverage companies, is facing two class-action lawsuits alleging that it deceptively marketed its popular tequila brands Casamigos and Don Julio as “100% agave” while allegedly including non-agave-derived alcohol in the products.
The lawsuits, filed in federal courts in New York and California, claim that independent laboratory testing revealed that both Casamigos and Don Julio contain significantly less than 100% agave ethanol, despite their labeling and marketing.
Plaintiffs in the New York case assert that Casamigos Blanco contains only 33% agave-derived ethanol, while Casamigos Reposado contains 42%. The California lawsuit, filed earlier this year, makes similar claims regarding Don Julio Blanco and Don Julio 1942.
Both suits allege that Diageo misled consumers into paying premium prices for products that do not meet the standards implied by the labeling. The New York complaint, filed on behalf of a mixology instructor, a social media bartender, and a kosher sushi restaurant, seeks at least $5 million in damages and an injunction to prevent Diageo from continuing the alleged deceptive marketing practices.
Under both Mexican and U.S. labeling laws, tequila labeled as “100% agave” must be made entirely from Blue Weber agave and cannot include added sugars or alcohol from other sources. The lawsuits argue that if the lab findings are accurate, Diageo may violate those regulations. They also raise questions about the oversight of the Consejo Regulador del Tequila (CRT), the regulatory body responsible for certifying tequila production and exports. Plaintiffs suggest that either the CRT certification processes failed or that there was a lack of proper enforcement.
Diageo has denied the allegations, stating that it “categorically denies” any misrepresentation or noncompliance with U.S. or Mexican laws and regulations. The company said in a statement that it stands behind the quality and authenticity of its tequilas and considers the lawsuits baseless.
Casamigos, founded in 2013 by George Clooney, Rande Gerber, and Mike Meldman, was acquired by Diageo in 2017 in a deal worth up to $1 billion, including performance-based payouts. Don Julio is another flagship tequila brand under Diageo’s portfolio and is marketed as a luxury product. Casamigos sold over 3 million 9-liter cases in 2023, making it one of the top-selling tequila brands globally.
The lawsuits reflect growing concern over the integrity of labeling in the rapidly expanding premium tequila market. Some industry advocates have called for more widespread use of nuclear magnetic resonance testing to ensure label accuracy, especially in products claiming to be free of additives or made solely from agave.
The outcome of the cases could have implications for both Diageo’s brand reputation and broader industry practices. If the allegations are upheld in court, they could trigger regulatory reviews, financial penalties, or changes to how premium tequilas are marketed and certified.
Source: KTLA
