Federal Lawsuit Accuses Diageo’s Casamigos and Don Julio Tequilas of Adulteration with Cane Spirit

A class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York, accusing Diageo of misleading consumers by falsely labeling its Casamigos and Don Julio tequilas as “100% agave.” The plaintiffs claim the tequilas contain significant amounts of cane or other non-agave spirits, challenging the validity of the brands’ labeling practices. This lawsuit seeks $5 million in damages and questions the certification process overseen by Mexico’s Consejo Regulador del Tequila (CRT).

The complaint highlights that the plaintiffs, which include a New York bartender and a Brooklyn sushi restaurant, bought Casamigos and Don Julio under the assumption they contained only Blue Weber agave, the base ingredient for pure tequila. They allege that had they known these spirits were adulterated with cane alcohol, they would not have purchased the products or would have paid significantly less for them.

Diageo strongly denies the allegations, insisting its products meet all regulatory standards. The company asserts that both Casamigos and Don Julio tequilas are certified by the CRT and adhere to the standards enforced by both Mexican and U.S. authorities. Despite Diageo’s defense, the plaintiffs maintain that the brands’ labeling is misleading, as it claims to represent purity that may not exist in the bottles.

The lawsuit also raises questions about the integrity of the CRT, which is responsible for certifying tequila authenticity. Allegations of corruption within the CRT are made, with reports suggesting that some tequila producers may have mixed cane or corn alcohol into their tequilas while still labeling them as “100% agave.” These claims, though unverified, contribute to the growing concerns about transparency and regulatory oversight within the tequila industry.

The case shines a light on a wider debate about tequila purity, especially in light of recent controversies surrounding additives and labeling practices. The CRT’s regulation of the industry, including its crackdown on misleading marketing by brands like Patrón, has made it a focal point of industry tensions. As the legal battle unfolds, the case could have broader implications for how tequilas are marketed and regulated globally.