Overview: A United States court has dismissed a proposed class action alleging that Diageo’s Tequila brands were not manufactured exclusively from Blue Weber agave. The ruling confirms the company’s assertion that its products meet regulatory standards for 100% agave content.
The Full Story
Judge Lashann DeArcy Hall of the US District Court for the Eastern District of New York granted Diageo’s motion to dismiss a complaint filed in May last year by consumers Avi Pusateri and Chaim Mishulovin, alongside Japanese-inspired restaurant Sushi Tokyo. The plaintiffs argued that consumers paid a premium under the belief that Casamigos and Don Julio met the standard for 100% de agave or 100% agave azul required by Mexican regulations. Diageo filed its initial response in July and subsequently moved to dismiss similar actions in Florida and New York.
The court found there was insufficient testing that proved systemic and widespread adulteration of Diageo’s Tequilas. While plaintiffs commissioned their own testing of five products purchased directly—including Casamigos Blanco, Reposado and Añejo, alongside Don Julio Reposado and Don Julio 1942 Añejo—the judge noted the study could not reasonably infer ubiquitous mislabelling based on limited samples. Diageo confirmed products are made from 100% Blue Weber agave and rejected allegations in their entirety.
Production & Profile
Under regulations for Tequila in Mexico, products labelled ‘100% de agave’ or ‘100% agave azul’ must use sugars derived exclusively from Blue Weber agave. The lawsuit specifically targeted the integrity of this standard across the portfolio. Diageo stated in a statement that Casamigos and Don Julio are made from 100% Blue Weber agave.
Brand & Industry History
Don Julio is the second biggest-selling Tequila brand globally after Jose Cuervo, according to The Brand Champions 2026 report. The brand sold 4.5 million nine-litre cases in 2025. George Clooney-founded Casamigos was the seventh-largest Tequila brand, with 1.9m cases sold last year. Diageo purchased Casamigos in 2017 in a US$1 billion deal. In the 12 months to 30 June 2026, sales of Don Julio and Casamigos fell by 19.2% and 27.7%, respectively.
What This Means
The ruling noted that while plaintiffs highlighted news reporting that claimed adulteration was an issue in the Tequila industry, the media had not called out Diageo and its products by name. Diageo continues to face similar lawsuits in San Francisco, California, and Miami-Dade County, Florida, as well as in Canada. The company has announced plans to reposition the Casamigos brand with a new marketing campaign to boost competitiveness.
Consumer Takeaway
This legal victory reinforces the stated specifications regarding the agave content used in Diageo’s portfolio. Consumers purchasing these bottles can rely on the confirmation that the spirits are made from 100% Blue Weber agave as per company statements and court findings.
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