Global corporation Diageo is embroiled in a class action lawsuit in the United States over allegations that its tequila products using the phrase '100% agave' constitute false advertising. The brands in question include 'Casamigos,' co-founded by Hollywood actor George Clooney, and the Mexican premium tequila 'Don Julio.' Don Julio is also sold in Korean duty-free shops and liquor malls through Diageo Korea.
On the 20th, citing reports from Reuters and others, it was reported that the related lawsuit was filed in May in the U.S. District Court for the Eastern District of New York. The plaintiffs argue that while the two tequila brands sold by Diageo are labeled as 'Tequila 100% de Agave' and '100% de Agave,' they actually contain a significant amount of ingredients derived from other plants like sugarcane or corn. They claim that Diageo failed to meet regulatory requirements in the U.S. or Mexico, and that consumers made purchasing decisions based on incorrect information. The plaintiffs are seeking over $5 million (approximately 690 million won) in damages and demand an end to the false advertising.
A source in the related industry noted that 'the purity debate of tequila has been raised continuously for years,' adding that 'this lawsuit is the first case where this debate has become a legal issue. Scientific analysis and consumer demands for transparency are pushing towards improved regulations.'
100% agave tequila, which uses only the specific Blue Weber agave plant as its raw material, takes at least 7 to 8 years to harvest and has lower production efficiency, making it more expensive than regular tequila. As a result, the '100% agave' label serves as a standard that guarantees quality and authenticity. The plaintiffs argue that 'if the label had been accurate, consumers would not have purchased the product at a premium price.'
Tequila is classified into two types based on the source of sugars used. 100% agave tequila is made only from sugars derived from agave, and bottling must occur in Mexico. In contrast, lower-priced tequilas known as 'Mixto' only need to have a minimum of 51% of the total sugars derived from agave. The remaining ingredients can be replaced with cheaper carbohydrates like sugarcane or corn syrup.
The plaintiffs presented scientific evidence from NMR (nuclear magnetic resonance analysis) and IRMS (isotope ratio mass spectrometry) tests. These analyses can distinguish between sugars derived from agave and sugarcane or corn by examining the molecular structure of the sugars and the carbon isotope distribution in the beverages. This technique is also used for determining whiskey aging periods, verifying wine vintages, tracing honey origins, and identifying olive oil varieties. The plaintiffs claim that the tests detected ingredients derived from sugarcane or corn in Diageo products.
In response, Diageo immediately refuted the claims. Diageo stated that 'the products in question are certified as “100% agave tequila” by the Mexican Tequila Regulatory Council (CRT) and the Alcohol and Tobacco Tax and Trade Bureau (TTB) in the U.S.,' and that 'all production processes and raw materials fully comply with regulations.' Stephen Rust, the representative for Diageo's spirits institutional sector in the U.S., described the lawsuit as 'scientifically unfounded and an outrageous claim that insults the industry.'
The CRT certification is effective within Mexico, but U.S. courts can determine the presence of false labeling under separate consumer protection laws. Some have criticized the CRT's certification system itself as having structural limitations. The CRT's certification is based on the producer's fair documentation, some bottle samples, and label markings. It has been said that even minimal blending may allow a product to pass certification.
Criticism of the CRT is also ongoing among agave farmers in Mexico. Some local farmer organizations have protested, stating that 'large exporters have been allowed by the CRT to sell tequilas that include sugarcane alcohol.' They argue that a restructuring of regulatory agencies and the introduction of third-party monitoring organizations are necessary.
As of today, the case has entered the discovery phase in the U.S. federal court. Future issues are expected to include the scientific reliability of detecting sugarcane components, legal standards for blending ratios, the CRT's certification process and transparency, and Diageo's quality management system.
Industry experts believe that this ruling could impact the '100%' labeling standards and advertising practices across the international liquor industry. This lawsuit is expanding beyond a simple trademark dispute into issues surrounding the labeling credibility of the global liquor industry and the consistency of international certification systems.
An industry insider stated that 'this lawsuit demonstrates how the legality and certification of the term 100% can be interpreted differently by various countries, beyond just the authenticity of product ingredients,' adding that 'if the U.S. court finds this as false labeling, it could lead to stronger consumer protection standards than those of other countries' certification systems.'