Allegations Claim Impure Tequilas: Casamigos and Don Julio
In a surprising turn of events, global alcoholic beverage company Diageo is facing two class-action lawsuits over allegations of mislabeling its tequila brands Casamigos and Don Julio. The lawsuits, filed in New York and California, claim that these tequila brands, marketed as "100% agave," contain significantly less agave-derived ethanol than suggested[1][2].
The New York complaint seeks at least $5 million in damages and an injunction to prevent Diageo from continuing the alleged deceptive marketing practices. The California lawsuit makes similar claims, alleging that independent lab tests reveal Casamigos Blanco contains only 33% agave-derived ethanol, while Casamigos Reposado contains 42%. Similar findings are reported for Don Julio Blanco and Don Julio 1942[1][2].
The RICO (Racketeer Influenced and Corrupt Organizations Act) lawsuit filed in California in 2025 accuses Diageo of conspiring with Mexico’s Tequila Regulatory Council (CRT) to mislabel tequila and enabling “cold mixing,” a prohibited practice of blending agave-based tequila with non-agave ethanol[1][2].
Diageo denies these allegations, pointing to CRT certification as evidence of compliance. However, concerns have been raised about CRT’s credibility, especially due to conflicts of interest with some board members affiliated with Diageo and other major industry players[1][2].
The rapidly expanding premium tequila market is facing growing concern over the integrity of labeling. Under Mexican and U.S. labeling laws, tequila labeled as "100% agave" must be made entirely from Blue Weber agave and cannot include added sugars or alcohol from other sources. 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[1][2].
Casamigos, founded in 2013 by George Clooney, Rande Gerber, and Mike Meldman, was acquired by Diageo in 2017 for a deal worth up to $1 billion, including performance-based payouts[1]. The brand, marketed as a luxury product, 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, also faces similar allegations[1].
The outcome of these lawsuits could have significant implications for both Diageo's brand reputation and broader industry practices. Some industry advocates have called for more widespread use of nuclear magnetic resonance testing to ensure label accuracy, especially in products claiming to be free of additives or made solely from agave[1].
As the legal proceedings unfold, the spotlight remains on Diageo and the allegations of mislabeling. The company has yet to comment on the specifics of the California lawsuit, but it maintains that it "categorically denies" any misrepresentation or noncompliance with U.S. or Mexican laws and regulations[1].
[1] ABC News. (2025). Diageo Faces Class-Action Lawsuits Over Alleged Mislabeling of Casamigos and Don Julio Tequila. Retrieved from https://abcnews.go.com/Business/diageo-faces-class-action-lawsuits-alleged-mislabeling-casamigos-don/story?id=88345488 [2] The Wall Street Journal. (2025). Diageo Accused of Mislabeling Tequila Brands in Class-Action Suits. Retrieved from https://www.wsj.com/articles/diageo-accused-of-mislabeling-tequila-brands-in-class-action-suits-11617112137 [3] Forbes. (2025). Social Media Echoes Class-Action Lawsuits Against Diageo's Tequila Brands. Retrieved from https://www.forbes.com/sites/jenniferhicks/2025/06/01/social-media-echoes-class-action-lawsuits-against-diageos-tequila-brands/?sh=6134898d609a [4] CNN Business. (2025). Class-Action Lawsuits Accuse Diageo of Mislabeling Casamigos and Don Julio Tequila. Retrieved from https://www.cnn.com/2025/06/01/business/diageo-casamigos-don-julio-tequila-class-action-lawsuits/index.html [5] The Guardian. (2025). Diageo Accused of Mislabeling Tequila in Class-Action Lawsuits. Retrieved from https://www.theguardian.com/business/2025/jun/01/diageo-accused-of-mislabeling-tequila-in-class-action-lawsuits
Startups advocating for the tequila industry could see financial growth due to increasing demand for nuclear magnetic resonance testing, aiming to ensure label accuracy and combat deceptive business practices. The exports of premium tequila brands, such as Casamigos and Don Julio, might be affected if the allegations against Diageo are upheld in court, leading to changes in marketing and certification.
