Diageo ‘Lied’: Lawsuit Alleges Premium Tequila Brands Not “100% Agave” As Advertised

A class action lawsuit filed Monday in federal court in Brooklyn accuses spirits giant Diageo of deceptively marketing its popular Casamigos and Don Julio tequila brands as “100% agave” when they allegedly contain significant amounts of cane or other non-agave alcohols.

The complaint, filed by consumers from New York and New Jersey along with a Brooklyn restaurant, claims Diageo violated consumer protection laws by selling what plaintiffs describe as “adulterated tequila” at premium prices while marketing the products as pure agave spirits.

Allegations of Adulteration

According to the lawsuit, laboratory testing revealed that bottles labeled as “Tequila 100% Agave Azul” (Casamigos) and “100% de Agave” (Don Julio) contained “significant concentrations of cane or other types of alcohol rather than pure tequila.”

The plaintiffs allege these products fail to meet the regulatory standards established by both U.S. and Mexican authorities, which require spirits labeled as “100% agave” to be produced solely from the Blue Weber Agave plant.

“Consumers pay a premium price for spirits made from 100% Blue Weber Agave because it is a crop that takes longer to grow and is more difficult to harvest and produce than other spirits such as vodka and gin,” the lawsuit states.

Industry Context

This lawsuit comes amid growing concerns about tequila adulteration.

The complaint cites January 2025 reports from Mexican media describing protests by agave farmers against major tequila companies for allegedly using non-agave ingredients in their products.

According to the court filing, representatives of the Mexican Agave Council have claimed that “large tequila companies began mixing cane alcohol into tequila that they sold as 100% agave” when agave prices were high.

Diageo’s Response

Diageo has dismissed the allegations, stating that the “claims are meritless” and that the company plans to “vigorously defend” itself in court.

The spirits conglomerate acquired Casamigos in 2017 for approximately $1 billion.

The brand, co-founded by actor George Clooney, has become one of the world’s top-selling tequilas, with reported case sales of 3 million in 2023.

Don Julio, Diageo’s other premium tequila brand, reportedly sold 3.4 million cases that same year.

Legal Claims

The lawsuit seeks class-action status for purchasers in New York and New Jersey, alleging violations of those states’ consumer protection statutes, including New York’s Deceptive Acts and Practices Law and the New Jersey Consumer Fraud Act.

The plaintiffs are seeking damages exceeding $5 million, along with an injunction to prevent Diageo from continuing what they characterize as false and misleading advertising practices.

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

The case (Avi Pusateri et al v. Diageo North America, 1:25-cv-02482) will be heard in the U.S. District Court for the Eastern District of New York.​​​​​​​​​​​​​​​​