Lawsuits claim that Casamigos and Don Julio tequilas contain less than 100% agave content.
Diageo Faces Class-Action Lawsuits Over Tequila Labeling
Diageo, a global alcoholic beverage company, is currently embroiled in multiple class-action lawsuits and a RICO lawsuit that allege the company's Casamigos and Don Julio tequila brands are falsely labeled as "100% agave." The lawsuits claim these tequilas contain significant amounts of non-agave alcohol, such as cane or other sugars, contradicting the 100% Blue Weber agave label and misleading consumers who paid premium prices.
The litigation began in 2023 and intensified in 2025, with cases filed in New York, Florida, and California. The California RICO suit alleges Diageo conspired with the Mexican Tequila Regulatory Council (CRT) to certify their tequilas as 100% agave despite tests showing only 33–42% agave ethanol content. This practice, known as "cold mixing," is banned.
Diageo denies these allegations, asserting that all Casamigos and Don Julio tequilas labeled as 100% agave fully comply with regulations and certifications by the CRT. They argue the lawsuits have no factual basis and claim the CRT's certifications prove compliance.
One lawsuit from California includes laboratory carbon isotope ratio analysis to differentiate the plant sources of ethanol alcohol, suggesting adulteration with non-agave alcohol in Diageo's products.
The outcome of these lawsuits could have significant implications for both Diageo's brand reputation and broader industry practices. If the allegations against Diageo are upheld in court, they could trigger regulatory reviews, financial penalties, or changes to how premium tequilas are marketed and certified.
Casamigos, founded in 2013 by George Clooney, Rande Gerber, and Mike Meldman, was acquired by Diageo in 2017 in a deal worth up to $1 billion, including performance-based payouts. Casamigos sold over 3 million 9-liter cases in 2023, making it one of the top-selling tequila brands globally.
Don Julio, another flagship tequila brand under Diageo's portfolio, is marketed as a luxury product. Both Casamigos Blanco and Reposado, as well as Don Julio Blanco and Don Julio 1942, are alleged to contain less than 100% agave-derived ethanol in the California lawsuit.
Industry advocates have called for more widespread use of nuclear magnetic resonance testing to ensure label accuracy. The New York lawsuit seeks at least $5 million in damages and an injunction to prevent Diageo from continuing deceptive marketing practices.
The lawsuits also raise questions about the oversight of the Consejo Regulador del Tequila (CRT), the regulatory body responsible for certifying tequila production and exports. As of mid-2025, Diageo continues to contest the claims vigorously in court.
[1] Law360 (2025). Diageo Faces Class Action Over Alleged Mislabeling Of Casamigos Tequila. [online] Available at: https://www.law360.com/articles/1446706
[2] Courthouse News Service (2025). Diageo Sued Over '100% Agave' Tequila Labeling. [online] Available at: https://www.courthousenews.com/diageo-sued-over-100-agave-tequila-labeling/
[3] Forbes (2025). Diageo Faces Class Action Lawsuit Over Casamigos Tequila Labeling. [online] Available at: https://www.forbes.com/sites/ashleystirban/2025/04/15/diageo-faces-class-action-lawsuit-over-casamigos-tequila-labeling/?sh=5c6f454e3c54
[4] Diageo (2025). Diageo Responds To Casamigos Tequila Lawsuit. [online] Available at: https://www.diageo.com/news/diageo-responds-to-casamigos-tequila-lawsuit
[5] Bloomberg (2025). Diageo Hit With Class Action Over Casamigos Tequila Labeling. [online] Available at: https://www.bloomberg.com/news/articles/2025-04-14/diageo-hit-with-class-action-over-casamigos-tequila-labeling
- The class-action lawsuits against Diageo could potentially affect not only the company's finance but also the entire energy sector, as higher costs may be incurred for adjusting production methods to meets consumers' expectations for authentic agave-derived tequila.
- The allegations against Diageo's tequila brands could lead to a shift in the industry, possibly prompting startups specializing in energy-efficient, 100% agave tequilas to increase their exports and challenge the dominance of established brands in the market.
