Lawsuit accuses Diageo of duping US consumers about tequila purity

By Mike Scarcella

May 6 (Reuters) - A new lawsuit accused spirits giant Diageo DGE.L of misleading consumers by deceptively labeling some of its popular tequila products as “100% tequila” despite containing other alcohols.

The proposed class action filed on Monday in federal court in Brooklyn by consumers and a restaurant said Diageo was falsely advertising bottles of Casamigos tequila as “Tequila 100% Agave Azul” and Don Julio bottles as “100% de Agave.”

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

The lawsuit claimed that consumers would have purchased another brand of tequila, or paid less for Diageo products, had they known Diageo’s labels were false.

London-based Diageo did not immediately respond to a request for comment.

Steve Berman, a lead attorney for the plaintiffs, said the lawsuit was filed to “demand truthful marketing of one of Mexico’s cherished products.”

Diageo sells billions of dollars' worth of tequila and Canadian whisky in the United States.

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.

According to the lawsuit, consumers pay more for spirits that are made from 100% Blue Weber Agave because the crop takes longer to grow and is more difficult to harvest than other types of alcohol.

Tequilas that do not include 100% agave are sometimes called “mixto” and labeled as “tequila,” according to the lawsuit.

The case is Avi Pusateri et al v. Diageo North America, U.S. District Court, Eastern District of New York, No. 1:25-cv-02482-LDH-RML.

For plaintiffs: Steve Berman of Hagens Berman Sobol Shapiro, and Robert Tolchin of The Berkman Law Office

For defendant: No appearance yet

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