Diageo faces lawsuit over alleged mislabeling of Casamigos and Don Julio Tequilas as “100% Agave”
A new lawsuit claims Diageo misrepresented Casamigos and Don Julio tequilas as “100% agave,” citing independent lab tests.
UK – Global beverage giant Diageo has been hit with a federal lawsuit alleging that its popular tequila brands, Casamigos and Don Julio, are falsely marketed as “100% agave” despite allegedly containing other types of alcohol.
The lawsuit, filed on May 5, 2025, in a U.S. federal court, was brought forward by a group of consumers and a restaurant who claim that the tequilas were misrepresented.
The plaintiffs allege that product labels stating “Tequila 100% Agave Azul” on Casamigos bottles and “100% de Agave” on Don Julio bottles mislead consumers into believing the spirits are made entirely from Blue Weber agave.
According to the complaint, independent laboratory testing revealed that the products contain “significant concentrations of cane or other types of alcohol,” which would disqualify them from being labeled as “100% agave” under U.S. and Mexican regulations.
The plaintiffs assert they would have purchased different brands or paid less for the tequilas had they been aware of the alleged misrepresentation.
The group is seeking more than $5 million in damages and has called for an injunction to prevent Diageo from continuing what they describe as misleading marketing practices.
Diageo has firmly denied the allegations. In a statement shared with Reuters, the company said, “These claims are meritless and we plan to vigorously defend ourselves in court.”
The company also noted that all its tequila brands are certified by Mexico’s Consejo Regulador del Tequila (CRT) and that its product labels are approved by the U.S. Alcohol and Tobacco Tax and Trade Bureau.
Under regulatory standards, only tequila made entirely from Blue Weber agave and produced in designated Mexican regions can be labeled “100% agave.”
Tequilas blended with up to 49% fermentable sugars from sources such as cane sugar are categorized as “mixto” and cannot carry the “100% agave” designation.
Diageo’s tequila brands represent a significant portion of its business. Casamigos, co-founded by actor George Clooney, was the fourth-largest selling tequila globally in 2023, with sales of 3 million nine-litre cases.
Don Julio ranked second, with 3.4 million cases sold.
Despite the legal dispute, Diageo continues to expand its brand visibility. The company was recently named the Official Spirits Supporter in the Americas for the FIFA World Cup 2026.
Its campaign will feature brands such as Casamigos, Don Julio, Johnnie Walker, Buchanan’s, and Smirnoff, with a focus on responsible drinking and fan engagement through marketing and retail initiatives.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
