Casamigos and Don Julio Tequilas Accused of Adding Cane Spirit in Federal Lawsuit

A federal lawsuit has been filed against Diageo, alleging that their Casamigos and Don Julio tequilas contain non-agave alcohols like cane spirit while being labeled as “100% agave.” This class action lawsuit, seeking $5 million in damages, raises questions not only about the accuracy of tequila certification by Mexico’s Consejo Regulador del Tequila (CRT) but also around the transparency and purity of premium tequila brands.

The conversation around tequila transparency has shifted from additives to the agave spirit itself, with the recent lawsuit accusing Diageo of adulterating their luxury tequilas. The complaint alleges that Casamigos and Don Julio tequilas contain significant amounts of cane alcohol rather than pure tequila, calling into question their “100% agave” labels in the U.S. and Mexico.

Consumers who purchased these tequilas believed they were getting high-quality products made exclusively from Blue Weber agave, paying a premium based on Diageo’s labeling terms. The lawsuit seeks damages for consumers who were allegedly misled and demands an injunction to stop deceptive advertising practices. Diageo has vehemently denied these accusations, asserting that their tequilas meet all regulatory standards set by the CRT and U.S. authorities.

Mexican law mandates that tequilas labeled as “100% de agave” must be made solely from Blue Weber agave, with only a permissible one percent of flavoring substances post-distillation. Mixing in spirits derived from other sources is strictly prohibited, and classified tequilas that include such spirits are labeled differently. The CRT enforces these regulations, ensuring compliance with production requirements and labeling standards, which are also upheld by the U.S. Alcohol and Tobacco Tax and Trade Bureau (TTB).

Despite certification by regulatory bodies like the CRT, the lawsuit challenges the integrity of tequila certification, citing reports of industry-wide regulatory compliance issues and allegations of corruption within the CRT. While these claims remain unverified, they shed light on the ongoing debate in the tequila industry regarding transparency, labeling standards, and regulatory enforcement.

Additives have become a contentious issue in the industry, especially after the CRT banned producers from marketing their tequilas as “additive free,” leading to conflicts with organizations aiming to promote transparency in tequila production. This lawsuit adds to the complexity of discussions around tequila purity and authenticity, raising important questions about the regulation and oversight of premium tequila brands like Casamigos and Don Julio.