Clooney’s former tequila brand sued for fraud

Our friend George Clooney is back in the headlines, but this time it is not for his political comments.

It turns out that Clooney Casamigos tequila has been hit with allegations of fraud.

Not What You Say It Is

Casamigos was founded by George Clooney, Rande Gerber, and Ric Edelman, and later sold for nearly $1 billion to one of the biggest companies in the business, Diageo, of which I am very familiar with from my days in the hotel and restaurant industry.

Even though Clooney sold, he was still tied to the brand as an ambassador, selling what is described as super premium tequila, only a new allegation has surfaced that claims it is not quite the product we are being told.

A class-action lawsuit has been filed, challenging that Casamigos is not using 100% blue agave, as it claims. The suit claims that a new testing method exists that can break down the sugars in the liquor to determine if it is truly a premium liquor or what is referred to as “mixtos,” which are only required to contain 51% agave to be classified as tequila.

Diageo says the claims are ludicrous, stating, “These claims of adulteration are outrageous and categorically false; Don Julio and Casamigos tequilas are crafted from 100% Blue Weber Agave and are in full compliance with the official tequila standard … We look forward to vigorously defending the quality and integrity of our Tequilas in court.”

Pure Agave v. Mixto Tequilas

For those of you not familiar with Casamigos, it is quite expensive for a tequila, as it is considered an ultra-premium brand, made with 100% blue agave.

So, I guess it’s time for a quick lesson in tequila so you understand the basis of this case.

Ultra-premium tequilas claim they are made with 100% blue agave, whereas other brands are only required to have 51% agave, at minimal, to be considered a tequila. These brands are referred to as mixtos, but they come with a price tag of about half of what the ultra-premium brands are charging.

For mixtos, they are usually sweetened with cane sugar or high fructose corn syrup, as well as having flavorings, colorings, and thickeners to give them the same appearance as the ultra-premium tequilas.

The Ages

Tequilas are also broken out into three aged categories, with the more aged tequilas fetching a much higher price, to the point that an anejo tequila will likely be at least 50% higher than the same brand’s silver tequila, and premium brands go even higher, including super anejos, which can break the bank.

A silver tequila is aged anywhere from 0-59 days, usually rested in stainless steel tanks to allow proper oxidation. Reposado tequilas are aged between two to 12 months, usually in oak barrels, much like our whiskeys and bourbons. There are also Joven tequilas, which are blends of silver and reposado tequilas (or they can be slightly aged silver tequilas).

Anejo tequilas are aged between one to three years, with super anejos, or extra anejos, being aged more than three years. This is, by far, the most expensive type of tequila, but it is also the most flavorful and more similar to whiskey and bourbon than any other tequila, which is why I like it.

This aging process, as well as the makeup of the tequila, is what drives the price. To give you an idea, you can get a decent mixto anejo tequila for about $40, whereas a Casamigos Anejo Tequila will cost you about $60, so you can see why people are so upset. Not only that, but if these claims are true, it ruins the trust of the consumer with the industry, which could wind up crushing ultra-premium tequilas. So, George, you have some explaining to do!