Diageo has strongly refuted claims in a lawsuit that it falsely advertised its Casamigos and Don Julio tequilas as being 100% agave.

In a statement Diageo North America said: “These claims are meritless, and we plan to vigorously defend ourselves in court.”

The lawsuit filed, which was filed this week in New York, alleges Diageo misled consumers by labelling Casamigos tequila as “Tequila 100% Agave Azul” and Don Julio bottles as “100% de Agave.”

The proposed class action was filed by cocktail enthusiast Avi Pusateri, Brooklyn restaurant Sushi Tokyo Inc. and consumer Chaim Mishulovin.

Lawyers for the plaintiffs said laboratory tests of Casamigos and Don Julio tequilas had shown “they consist of significant concentrations of cane or other types of alcohol rather than pure tequila” and do not meet regulatory requirements of the United States or Mexico to be called “100% agave”.

The lawsuit claimed that “if plaintiffs and the proposed class members had known the truth of the ingredients in the product, they would not have bought Diageo tequilas or would have paid less”.

The lawsuit seeks class action status for purchasers in New York and New Jersey, damages of more than $5 million and a court ruling prohibiting false advertising by Diageo.

Steve Berman, lead attorney from Hagens Berman Sobol Shapiro said:
“The lawsuit aims to demand truthful marketing of one of Mexico’s most cherished products.”

Under the official Mexican Norma (NOM-006) overseen by the Consejo Regulador del Tequila, a “100% agave” tequila is defined as “a product whose fermentation may not be enhanced with sugars other than those obtained from the Tequilana Weber Blue variety agave”.

The CRT has certified that all tequilas in Diageo’s portfolio meet the requirements of the NOM. 

Cheaper tequilas, known as “mixtos” require only 51% of their sugar to come from the agave plant, with the remainder usually being cane sugar.

As The Drinks Business notes: “The outcome of this case could have wide-ranging repercussions for the spirits industry. If Diageo is found liable for misrepresenting its tequila, it may be required not only to compensate consumers but also to change how these products are made or labelled. A court injunction would likely force Diageo to either reformulate Casamigos and Don Julio to truly meet the 100% agave standard or to remove the ‘100% agave’ wording from bottles and marketing.”

The lawsuit comes ahead of FIFA and Diageo announcing they are teaming up for the FIFA World Cup 26™ in North, Central and South America, with Diageo joining the celebration as an Official Tournament Supporter.