Diageo Hit With $5 Million Lawsuit Over Allegedly False “100% Agave” Label On Casamigos And Don Julio

The surge in the craze for tequila in recent years is undeniable. Earlier, it used to be popular only as a party shot, but today it has reinvented its position as one of the most sophisticated spirits. At the helm of this revolution are two popular names: Don Julio, a premium brand, and Casamigos, a tequila brand backed by George Clooney. Both of them boast a ‘100% Agave’ label, marking the authenticity that tequila lovers look for. However, Diageo is now facing a lawsuit since a group of consumers and a restaurant have filed a complaint in Brooklyn claiming that these bottles do not contain ‘100% Agave’ spirit. 

Diageo Faces Lawsuit For Allegedly False ‘100% Agave’ Labels

A lawsuit has recently been filed against Diageo for labelling the products incorrectly, as these tequilas contain significant amounts of cane or other types of alcohol. It states that these tequila brands under Diageo do not meet the requirements set by both the United States and Mexico to be labelled as ‘100% Agave,’ according to FoodBev.

When it comes to tequila, the term ‘100% Agave’ is not just something that’s used for marketing. In fact, it is a symbol that confirms the quality of the spirit. Agave, particularly the Blue Weber Agave, takes years to cultivate and harvest before it is turned into tequila. On the other hand, if a tequila contains other types of alcohol in it, it must be labelled as ‘Mixto’, which is cheaper to produce compared to the ‘100% Agave’ spirit. 

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Diageo Rejects All Claims

The plaintiffs state that if the consumers had known that Don Julio and Casamigos weren’t truly ‘100% Agave’ spirits, they would have chosen a different or cheaper brand. According to the FoodBev reports, the lawsuit seeks class action status for affected customers in New York and New Jersey, as well as damages exceeding $5 million. 

The plaintiffs also wish for a court ruling that would prevent Diageo from falsely advertising tequilas in future. However, Diageo firmly stands its ground and rejects all allegations. It has asserted that the claims have no merit, and the company also intends to defend itself in court, FoodBev reported.

While the truth is yet to be determined, this lawsuit is certainly a significant moment that will determine the transparency and quality of the spirit. This legal issue could truly impact how consumers value the ‘100% Agave’ label in the future.

Cover Image Courtesy: Don Julio/Website and Casamigos/Website