Diageo faces growing legal backlash
A wave of lawsuits in New York, Florida, and California accuse Diageo of falsely labelling its Don Julio and Casamigos Tequilas as 100% agave. The beverage giant strongly denies the allegations and vows to fight them in court.
American litigants are jumping on a bandwagon set in motion in New York in May, alleging that the labelling of Diageo’s Don Julio and Casamigos tequilas is misleading.
The company is now being sued separately in both Dade County, Florida and San Francisco in very similar actions.
Allegations of adulterated Tequila
The first class action claims the company sold “adulterated Tequila” to consumers because it was labelled as 100% agave when it contained “significant concentrations of cane or other types of alcohol rather than pure Tequila,
The plaintiffs allege they “paid super-premium prices… but they received neither a premium product nor 100% Blue Weber agave Tequila.”
Diageo strongly rejects the charges and states that it will vigorously defend itself.
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Multiple lawsuits across the US
The first claim was filed in New York by three parties: New Jersey resident Avi Pusateri, New York bartender Chaim Mishulovin, who runs the Jazz Age Cocktails Instagram account, and Brooklyn restaurant and bar Sushi Tokyo Inc. They are demanding US$5 million in damages.
The claims centre on the regulations set by the CRT, the Mexican governing body that oversees tequila production. They dictate that a product labelled 100% can only be made only from Blue Weber agave, but it may legally include less than 1% by volume of additives to enhance the flavour, colour, and texture of the drink.
Specifically, 100% agave cannot contain it cannot contain cane or other sugar-derived alcohols.
The three separate lawsuits allege that both Don Julio and Casamigos exceed those limits. The San Francisco claim is said to be backed by test results to support the allegation.
Diageo’s defence and market impact
Don Julio and Casamigos are the major super premium brands of tequila in the United States, which is Diageo’s biggest market and profit centre.
The company has issued a statement rejecting the claims. It said: “These claims of adulteration are outrageous and categorically false; 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). We will vigorously defend the quality and integrity of our Tequilas in court, and against anyone who is spreading misinformation and lies about our products.”
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