Costco Faces Class Action Lawsuit Over Its Popular Kirkland Tequila — Here's What To Know

Kirkland brand tequilas from Costco are made in Mexico (which is also the only place the spirit is legally allowed to be made) and are enormously popular because – like many of the company's house brand items — they are an excellent value. While shoppers have come to expect to get a high quality liquor at a sometimes unbelievable price, perhaps the price tag is, indeed, too good to be true. A class action lawsuit filed in Miami, Florida against Costco alleges that the grocery chain misled consumers, claiming that its Blanco, Reposado, and Añejo tequilas are not made with 100% agave as the labels proclaim. 

According to tequila regulations in the United States and Mexico, tequila brands may only claim to be a product of 100% agave if they are made exclusively from blue agave sugars. In the lawsuit, the plaintiff and their legal team claim that the Kirkland Signature Añejo Crisalino contains cane sugar. They argue that the Kirkland tequila labels lead customers to believe that they are getting a high-quality product for a low price, and many customers would not have purchased said tequilas had they known they were of lesser quality.

If the lawsuit's allegations prove to be true, Kirkland brand tequilas would not qualify as a premium-level product, and the company would either need to change its formula or change its labeling if its formulas remained the same. Legitimate 100% agave tequila must be made fully from blue agave. Tequilas made with cane sugar are not unusual, however, they must be labeled as a "mixto" and cannot be marketed as 100% agave tequila. Mixtos requirements are much looser; these liquors must consist of at least 51% agave, while the remaining 49% can include cane sugar, high fructose corn syrup, or other kinds of sugars. In addition, mixto brands may also contain artificial colors, flavors, and thickeners. 

So why does this matter? Well, some believe that mixto tequilas can lead to those notorious "tequila hangovers" that have made more than a few people swear off the liquor for life. Mixing the pure agave with sugars and artificial flavors has a similar effect to mixing different kinds of alcohol; the sugar has the potential to increase the severity of the after effects. But the concern isn't just about a hangover — it's about knowing exactly what you're paying for. And customers have the right to be upset that their premium tequilas could turn out to be not so premium after all.