Costco Faces Lawsuit Over The Authenticity Of Its Kirkland Tequila

Costco is one of the largest retailers of alcohol and spirits in the United States. Their Kirkland brand, which most shoppers know for its high-quality products, can also be found on several types of alcohol, including 100% agave tequila. Tequila production is tightly regulated in Mexico, so exacting standards must be met to produce anything that can legally be called tequila. This level of regulation is often reflected in the price of the final product. But because Costco is such a volume seller, it can offer the same product for a much lower price. Back in 2022, Kirkland Signature tequila sold for about $7 per 250 milliliter bottle, and Forbes called it the best value around. However, Costco is now facing a class action lawsuit that calls those standards into question.

You can buy many tequilas at Costco, and Kirkland Signature tequila comes in three varieties: Blanco, Reposado, and Añejo. The different names correspond to how long each tequila is aged, something like how whiskey aging is classified. The older the tequila, the darker the color and the richer and more complex the flavor. At the heart of the new lawsuit is the claim that all of these Kirkland Signature tequilas are not made with 100% blue agave.

The case claims that Kirkland's tequila is adulterated with cane sugar. Since it is marketed as 100% blue agave and the bottles prominently state that claim, if the accusations are proven true, this could qualify as false advertising, and Costco could be on the hook for a lot of money.

According to the lawsuit, the plaintiff in the case used something called Nuclear Magnetic Resonance to analyze the makeup of the tequila. The science is complicated, but essentially different plants produce different isotopes in the ethanol that is made from them. This can be analyzed to determine where the ethanol came from. The lawsuit claims that the Kirkland tequila is so adulterated it couldn't even qualify as a mixto. A mixto, under Mexican law, is tequila that is at least 51% blue agave.

The Mexican government recognizes Nuclear Magnetic Resonance as an acceptable and accurate way to determine the authenticity of tequila. This method, although generally sound, has been criticized for not being the best or most complete way to determine adulterations because telling agave apart from cane sugar is difficult. Other analyses are recommended, but it's unclear whether additional testing was performed or what other evidence the plaintiffs may have.

No one has necessarily accused Costco of intentionally deceiving its customers. Because Costco uses distillers in Mexico, if it's proven that the tequila has been adulterated, it still could have been done entirely without their knowledge. The full details will likely only be known if the case goes to trial, and for that, we'll have to wait. In the meantime, no one is saying that the Kirkland Signature tequila isn't a good beverage, although the Tequila Añejo has been criticized. The lawsuit only says that it may be made with inferior ingredients. If you have a bottle at home, there's no need to worry.