A Class Action Lawsuit Claims Casamigos and Don Julio Tequilas Are Not 100% Agave

Over the past several years, the conversation around transparency in tequila has largely centered on the use of additives and the precise language producers can use on their bottles to describe what’s been added—or not added—to the spirit inside. However, this week, that conversation shifted to the purity of the agave spirit itself, as a class action lawsuit filed in U.S. federal court accused global spirits giant Diageo of adulterating some of its most popular luxury tequilas and misleading consumers through deceptive labeling.

The class action complaint filed in the U.S. District Court for the Eastern District of New York alleges that “an investigation of Casamigos and Don Julio tequilas has shown that they consist of significant concentrations of cane or other types of alcohol rather than pure tequila.” 

As such, the complaint contends that neither brand meets the regulatory requirements to label itself “100% agave” in either the United States or Mexico, although both Casamigos and Don Julio bottles carry the descriptors “Tequila 100% Agave Azul” and “100% de Agave,” respectively.

In the filing, the plaintiffs, which include a Brooklyn sushi restaurant and a New York-based bartender who runs a popular Instagram account, claim that they purchased both Casamigos and Don Julio tequilas under the assumption that both contained spirits made exclusively from Blue Weber agave. Moreover, they and countless consumers like them paid a premium for what they believed to be high-quality tequila based on Diageo’s labeling terms. Had they known those products were (allegedly) adulterated with non-agave spirits, they wouldn’t have bought those products or would’ve paid less for them.

The suit ultimately seeks $5 million in damages on behalf of consumers, as well as an injunction compelling Diageo to cease the deceptive advertising alleged in the complaint. Via a statement, Diageo global head of agave Sophie Kelly responded that “these claims of adulteration are outrageous and categorically false.”

According to Mexican law, tequilas branded as “100% de agave,” or similar variations, must be produced solely from Blue Weber agave grown in specific regions of Mexico. While it is allowed to add flavoring substances post-distillation, these can only comprise up to one percent of the total volume. However, the use of spirits not derived from Blue Weber agave is strictly forbidden. Tequilas that include spirits from cane, corn, or other sugars are classified as “mixtos” and are generally labeled accordingly (or sometimes simply referred to as “tequila” without the “100%” designation).

In Mexico, the Consejo Regulador del Tequila (CRT) enforces regulations, certifying that products sent to market comply with both production requirements and labeling standards. For tequila exported to the United States — the largest market for tequila — the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB) also enforces labeling rules, deferring to Mexico’s regulations. 

“Don Julio and Casamigos tequilas are crafted from 100% Blue Weber Agave and, following a rigorous certification process by the CRT, are in full compliance with the official tequila standard (NOM) and U.S. TTB regulations,” Kelly said in a statement. “We look forward to vigorously defending the quality and integrity of our Tequilas in court.”

However, the lawsuit challenges the idea that certification by the CRT equates to truth in advertising. The filing cites a recent report by agave spirits authority Mezcalistas, in which protesting agave farmers assert that there is a lack of regulatory compliance throughout the industry, particularly concerning the issue of tequila adulteration.

The lawsuit also levels a more inflammatory allegation of CRT corruption. “There are reports that ‘CRT officials have been turning a profit by allowing some tequila corporations to mix cane or corn alcohol into Tequila that’s then labelled as 100% agave,’” the court filing says. “This has been confirmed by sending ‘samples of tequila for laboratory analysis’ and observing ‘trucks delivering cane alcohol to distilleries.’”

These allegations remain wholly unsubstantiated, and many of the more serious accusations in the complaint rely heavily on secondhand “reports” like the aforementioned Mezcalistas dispatch. However, it directly addresses a long-simmering debate in the tequila industry over transparency, labeling standards, and uneven regulation. 

Additives have emerged as a particular flashpoint within the industry over the past two years, as the CRT has prohibited producers from marketing their tequilas as “additive free,” at times taking actions that critics view as heavy-handed.

Last month, the CRT filed its own lawsuit in U.S. District Court, accusing the Additive Free Alliance — an industry non-profit promoting transparency in tequila production and labeling — of misleading consumers. The CRT asserts that it is the only regulatory body with the authority to certify tequilas as “additive free,” although it currently offers no such certification. 

In February the CRT also temporarily blocked exports of Patrón into the U.S. in response to a nationwide advertising campaign touting the tequila’s lack of “secret ingredients.”