Global beverage leader Diageo North America is now facing a high-profile class action lawsuit filed in the U.S. District Court for the Eastern District of New York.
The suit alleges that the company falsely marketed its Casamigos and Don Julio tequilas as "100% agave" while allegedly using non-agave alcohols in the production process.
The Allegations
Plaintiffs Avi Pusateri, Chaim Mishulovin, and Sushi Tokyo Inc. allege that Diageo deceived consumers in New York and New Jersey by labeling its tequilas as pure "100% agave."
According to the complaint, independent laboratory tests reportedly found significant amounts of non-agave alcohols, including cane spirits, in the products.
The lawsuit claims this misrepresentation violates both U.S. and Mexican regulations governing tequila composition and marketing.
Plaintiffs’ Statement
Steve Berman, lead attorney from Hagens Berman Sobol Shapiro, commented:
"The lawsuit aims to demand truthful marketing of one of Mexico's most cherished products."
The plaintiffs also highlight the broader economic harm, arguing that using cheaper alcohol substitutes has negatively affected small-scale agave farmers in Mexico by driving down agave prices.
Diageo’s Response
Diageo North America has strongly denied the allegations. A company spokesperson stated:
"These claims are meritless, and we plan to vigorously defend ourselves in court."
No further public statements have been issued by the company at this time.
The case, Pusateri et al. v. Diageo North America, Inc., seeks more than $5 million in damages. The plaintiffs are also pursuing a court order to halt what they describe as deceptive marketing practices related to tequila purity claims.
Diageo plc is a global leader in premium spirits and beer, with brands like Johnnie Walker, Guinness, Tanqueray, Baileys, Don Julio, and Casamigos. Headquartered in London and operating in over 180 countries, Diageo focuses on premiumization, innovation, and sustainability, with North America as its largest market.
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