Tequila Trouble: Casamigos And Don Julio Accused Of Misleading “100% Agave” Claims

Case Overview: A class action lawsuit alleges Diageo falsely labels its Casamigos and Don Julio tequilas as "100% agave," claiming they contain cheaper non-agave alcohols in violation of labeling laws.

Consumers Affected: Consumers who purchased Casamigos and Don Julio tequilas believing they were "100% agave."

Court: U.S. District Court for the Eastern District of New York

Diageo is accused of falsely labeling its popular Casamigos and Don Julio brands as “100% agave” while allegedly spiking the spirits with cheaper non-agave alcohols like cane spirits, according to a class action filed in federal court. 

The lawsuit, filed in the Eastern District of New York, claims this practice misleads consumers and violates labeling laws in both the U.S. and Mexico, Food and Wine reports.

If true, the brands would fall short of the regulatory standards required for the coveted “100% agave” designation, calling into question the integrity of industry watchdogs and marketing practices alike.

Casamigos and Don Julio Accused of False Labeling

The plaintiffs include a Brooklyn sushi restaurant and a well-known New York bartender with a large social media following. Both say they specifically chose Casamigos and Don Julio expecting high-quality tequila made entirely from Blue Weber agave and paid premium prices for that promise.

According to the lawsuit, they never would have bought the bottles, or would have paid significantly less, had they known the spirits allegedly contained other types of alcohol. The complaint says lab tests revealed “significant concentrations” of cane or other alcohols in the tequilas and argues they were sold under misleading labels.

Lawsuit Details How Non-Agave Alcohols Allegedly Affect Tequila Purity

Under Mexican law, tequila labeled as “100% agave” must be made solely from Blue Weber agave grown in designated regions. Spirits cut with non-agave alcohols, like cane or corn, are known as “mixtos” and cannot carry that premium label.

The lawsuit doesn’t just target Diageo—it also takes aim at Mexico’s tequila regulatory agency, the Consejo Regulador del Tequila (CRT), which certified the products. The plaintiffs allege lax enforcement and even suggest possible corruption within the CRT, citing reports that some officials may have accepted payment to look the other way.

This case comes amid a broader reckoning over transparency in the tequila industry, where disputes over additives, labeling, and regulation have already led to infighting. Just last month, the CRT sued a nonprofit promoting “additive-free” tequila and temporarily blocked Patrón exports over an ad campaign touting its purity.

Diageo Denies Claims, Vows to Defend Integrity of Brands

The lawsuit seeks $5 million in damages and a court order to stop what it calls deceptive advertising. Diageo, for its part, says the claims are “outrageous and categorically false.”

“Don Julio and Casamigos tequilas are crafted from 100% Blue Weber Agave,” said Sophie Kelly, Diageo’s global head of agave. “We look forward to vigorously defending the quality and integrity of our tequilas in court.”

For now, the allegations remain unproven, but they’ve reignited debate over what’s really in your glass.

Case Details

• Lawsuit: Pusateri et al v. Diageo North America, Inc.
  Case Number: 1:25-cv-02482-LDH-RML 
• Court: U.S. District Court for the Eastern District of New York

Plaintiffs' Attorneys

• Nathaniel A. Tarnor and Steve W. Berman (Hagens Berman Sobol Shapio LLP)
• Robert J. Tolchin (The Berkman Law Office, LLC)

Do you buy '100% agave' tequila? Share your thoughts on these allegations in the comments below.