A new class-action lawsuit has been filed against Diageo, the parent company behind Casamigos tequila, claiming that the brand is charging consumers “super premium prices” for a product that contains less than 100% pure agave tequila.
The suit, which seeks $5 million in damages from each of three plaintiffs, alleges that lab tests have revealed significant amounts of cane sugar in Casamigos and another premium tequila brand, Don Julio. This contradicts the manufacturers’ claims that both brands are made exclusively with 100% Blue Weber agave and retail for up to $150 per bottle.
According to experts, cheaper “mixtos” tequilas require only 51% of their sugar to come from the agave plant, with the remainder being ordinary cane sugar. The new testing method, which is cited in the lawsuit, can determine whether tequila has been adulterated with cane sugar.
Diageo, which acquired Casamigos for $1 billion in 2017, denies any wrongdoing and claims that its tequilas are “crafted from 100% Blue Weber Agave” and fully compliant with official tequila standards. The company’s spokesperson stated, “These claims of adulteration are outrageous and categorically false… We look forward to vigorously defending the quality and integrity of our Tequilas in court.”
George Clooney, who helped make Casamigos a top-selling brand before selling it to Diageo, has not commented on the lawsuit. However, industry insiders warn that if the suit is successful, it could have far-reaching implications for the premium spirits market.
“This could spark a reckoning in the booze industry,” said one liquor executive, noting that many consumers are increasingly skeptical of luxury brands and their marketing tactics. “Anything that erodes trust in the industry isn’t good.”
The lawsuit also highlights tensions between skilled agave farmers who grow the crops used to make premium tequilas and corporations that rely on celebrity endorsements to market their products.
As consumers become more aware of the ingredients and production methods behind luxury spirits, they may be prompted to pay closer attention to what they’re drinking and where it comes from. The outcome of this lawsuit could have significant consequences for the future of the premium spirits industry.
Background
Casamigos tequila was sold to Diageo in 2017 for $1 billion, with Clooney and his business partner, Randy Gerber, retaining a role as brand ambassadors. However, the deal was staggered over ten years, during which time the company’s website and social media continue to feature prominent images of the Hollywood star.
Implications
If the lawsuit is successful, it could lead to a reevaluation of premium spirits brands and their marketing practices. Consumers may become more discerning about the ingredients and production methods behind luxury products, potentially leading to increased transparency and accountability in the industry.
The case also underscores tensions between agave farmers and corporations that rely on celebrity endorsements to market their products. As consumers demand greater transparency and authenticity from luxury brands, companies like Diageo may be forced to reexamine their business practices and marketing strategies.
Source: NY Post
