UPDATE: Diageo, the global alcoholic beverage giant, is under fire as it faces two class-action lawsuits claiming its popular tequila brands, Casamigos and Don Julio, are misleadingly marketed as “100% agave.” These lawsuits, filed in federal courts in New York and California, allege that both brands contain non-agave-derived alcohol, challenging their premium pricing and labeling.
The lawsuits, which emerged earlier today, assert that independent lab tests show alarming results: Casamigos Blanco reportedly contains only 33% agave-derived ethanol, while Casamigos Reposado has just 42%. Similar accusations against Don Julio Blanco and Don Julio 1942 have surfaced in the California case, raising significant concerns over product integrity.
Plaintiffs, including a mixology instructor and a kosher sushi restaurant owner, are seeking at least $5 million in damages, alongside an injunction to halt what they describe as deceptive marketing practices. The lawsuits argue that Diageo misled consumers into believing they were purchasing tequila that adhered to the strict definitions of being “100% agave,” as outlined by both U.S. and Mexican labeling laws.
Under these regulations, tequila labeled as “100% agave” must consist entirely of Blue Weber agave, with no added sugars or alcohol from other sources. The implications of these findings could lead to serious repercussions for Diageo, including regulatory scrutiny and financial penalties if the allegations prove valid.
In a firm response, Diageo has categorically denied the accusations, asserting that it complies with all relevant laws and maintains the authenticity of its tequilas. The company emphasized that it stands by the quality of Casamigos and Don Julio products, labeling the lawsuits as baseless.
Founded in 2013 by George Clooney, Rande Gerber, and Mike Meldman, Casamigos was acquired by Diageo in 2017 for up to $1 billion. Casamigos has become a top-selling tequila brand, with over 3 million 9-liter cases sold in 2023 alone. Don Julio, another flagship brand within Diageo’s portfolio, is marketed as a luxury product, further complicating the potential fallout from these lawsuits.
As the premium tequila market continues to expand, the lawsuits highlight growing concerns regarding labeling accuracy and consumer trust. Industry advocates are calling for enhanced testing methods, such as nuclear magnetic resonance testing, to ensure that products claiming to be additive-free or made solely from agave meet their advertised standards.
The outcome of these lawsuits could significantly impact Diageo’s brand reputation and the broader tequila industry. If the claims are validated, it could lead to changes in how premium tequilas are marketed and certified, potentially reshaping consumer expectations and industry practices.
Stay tuned for further updates as this developing story unfolds. The implications of these lawsuits may resonate throughout the alcoholic beverage sector, affecting both consumer confidence and regulatory practices.
