Diageo faces class action suit over tequila purity claims

Diageo North America is facing a class action lawsuit in the US District Court for the Eastern District of New York, with plaintiffs alleging that the company falsely marketed its popular tequila brands, Casamigos and Don Julio, as '100% agave' while they allegedly contain significant amounts of alcohol from other sources such as cane. The plaintiffs claim laboratory tests revealed the presence of non-agave alcohols, and argue they paid premium prices for what was advertised as authentic, top-quality tequila but did not receive it. The suit, seeking over $5 million in damages and an injunction against false advertising, asserts that these products do not meet US or Mexican regulatory standards for '100% agave' labeling. Diageo has denied any wrongdoing, calling the lawsuit meritless, and maintains that its products are compliant with all relevant regulations and have been certified by the Consejo Regulador del Tequila (CRT) as well as approved by the US Alcohol and Tobacco Tax and Trade Bureau. The controversy centers on industry definitions and consumer expectations for what constitutes '100% agave' tequila. The case highlights broader concerns about transparency and marketing practices within the tequila industry.