Lawsuits Claim Impure Tequila Production for Casamigos and Don Julio
In a series of class-action lawsuits filed in 2025, Diageo's popular tequila brands, Casamigos and Don Julio, have been accused of misrepresenting their products as "100% agave" tequila. The allegations claim that the alcohol content in these products contains other sources, contrary to the labeling laws in both Mexico and the United States.
The lawsuits, filed in New York and California, present laboratory testing results suggesting that Casamigos Blanco contains only 33% agave-derived ethanol, while Casamigos Reposado contains 42%. Similarly, Don Julio Blanco and Don Julio 1942 variants are alleged to contain around 33%-42% agave ethanol.
One lawsuit from San Francisco, for instance, used carbon isotope ratio analysis, a scientifically validated method, to argue that Casamigos blanco had about 33% agave ethanol, Casamigos reposado about 42%, and Don Julio 1942 variants contained around 33%-42% agave ethanol.
Diageo, a global alcoholic beverage company, has strongly denied these allegations, stating that all their Casamigos and Don Julio tequila products labeled as "100% agave" are genuine, produced entirely from Blue Weber agave, and undergo rigorous production and certification processes. The company is defending the integrity and quality of these brands.
The rapid expansion of the premium tequila market has raised questions about the oversight of the Consejo Regulador del Tequila (CRT), the regulatory body responsible for certifying tequila production and exports. Some industry advocates suggest the use of nuclear magnetic resonance testing to ensure label accuracy, especially for products claiming to be free of additives or made solely from agave.
If the lab findings are accurate, Diageo may have violated Mexican and U.S. labeling laws regarding tequila labeled as "100% agave." The outcome of these lawsuits could impact Diageo's brand reputation and potentially trigger regulatory reviews, financial penalties, or changes in how premium tequilas are marketed and certified.
It's important to note that Casamigos, one of the accused brands, was acquired by Diageo in 2017 for up to $1 billion. The company is facing two class-action lawsuits, with each seeking at least $5 million in damages and an injunction to prevent Diageo from continuing alleged deceptive marketing practices.
[1] San Francisco Class Action Lawsuit Against Diageo: https://www.law360.com/articles/1409306/san-francisco-class-action-lawsuit-accuses-diageo-of-misrepresenting-tequila-brands-as-100-agave [2] New York Class Action Lawsuit Against Diageo: https://www.courthousenews.com/diageo-sued-over-tequila-labeling-claims/
- The Class Action Lawsuit in San Francisco proposes the implementation of nuclear magnetic resonance testing within the tequila industry to ensure the accuracy of labeling and maintain the authenticity of 100% agave tequila.
- The findings might indicate that the financial growth of the premium tequila industry, including export revenues, might be influenced by practices that contradict labeling laws, potentially affecting the reputation, regulatory compliance, and financial standing of key businesses like Diageo.
- The allegations against Diageo's import-export business of misrepresenting their tequila products, specifically Casamigos and Don Julio, as "100% agave" tequila, may have come from an overlooked aspect of the energy-intensive tequila production process that impacts the end product's composition.
