A Deep Dive Into the Allegations, Tequila Labeling Laws, Additive Rules, CRT Authority, and Why Costco Is Not the Real Issue

Important Note: ArkansasLiquor.com has no affiliation or connection with Costco. I simply shop the Little Rock Costco liquor store frequently because of their pricing. This article is an independent industry analysis.

1. The Lawsuit Against Costco’s Kirkland Tequila — What Is Being Alleged?

In late 2025, a class-action lawsuit was filed accusing Costco of mislabeling its Kirkland Signature tequila as “100% Blue Weber Agave.” The plaintiffs argue:

Allegation #1 — The Tequila Contains Non-Agave Ethanol

Plaintiffs claim that independent laboratory testing — using Nuclear Magnetic Resonance (NMR) and isotope ratio analysis — indicates the presence of:

Cane-derived ethanol, or
Other non-agave sugars,

suggesting the tequila may not meet the Mexican regulatory definition of 100% agave tequila.

These are the same tests used in:

The Casamigos lawsuit
The Don Julio lawsuit
The Cincoro lawsuit
The general wave of “tequila purity” lawsuits affecting the industry

These lawsuits all repeat nearly identical claims and cite similar lab methodologies.

Allegation #2 — Costco Misled Consumers Into Paying Premium Prices

By labeling the bottle as “100% Blue Weber Agave,” plaintiffs argue Costco:

Positioned the tequila as premium
Allowed consumers to believe the product was free of non-agave sugars
Benefited financially from perceived agave purity

Worth noting:
The lawsuit does not allege any health or safety issue, only labeling and purity representation.

Allegation #3 — Costco Should Have Known Better

The plaintiffs claim Costco “knew or should have known” the tequila wasn’t 100% agave because of:

Its industry relationships
Market position
Purchasing power
Contracted private-label agreements

This is speculative and unproven.

Reality Check: The Case Is Unresolved

There has been:

No settlement
No judgment
No class certification

The lawsuit is ongoing, and the claims remain unproven.

2. The Tequila Labeling System: CRT Controls Everything

Most consumers don’t know this:
Costco does NOT write the production-related parts of its tequila label.
Mexico does.

Tequila labeling is governed by:

NOM-006-SCFI-2012

Mexico’s official tequila standard.

And enforced by:

CRT — Consejo Regulador del Tequila

Mexico’s federal tequila regulator.

This governing system controls:

What can appear on a label
What MUST appear
What can NEVER appear
How sugar sources are classified
Whether “100% de agave” is legally approved
Whether a tequila can be exported at all

How Label Approval Works:

Step 1 — The Distillery Submits Label & Formula to the CRT

The producer provides the CRT with:

Production logs
Sugar-source documentation
Distillation records
Additive declarations
Batch chemistry
Proof and aging documentation

Step 2 — The CRT Reviews and Certifies the Label

If the CRT determines the tequila qualifies as “100% agave,” they require this phrase to appear.

Step 3 — Approval Stamp + NOM Number

The CRT certifies the tequila with a NOM number and approves the final label.

Step 4 — U.S. Retailers MUST Sell the Bottle Exactly As Certified

Costco cannot alter:

“100% Blue Weber Agave”
NOM number
Additive disclosures (or lack thereof)
Production method information
CRT-certified statements

If Costco changes one single production-related phrase, it voids export legality under Mexican law.

3. What Tequila Distilleries Are Allowed To Add – Even in “100% Agave” Tequila

This is the part almost no consumer understands:

“100% agave” does NOT mean absolutely nothing added.

Under NOM-006, distilleries may legally add up to:

1% TOTAL ADDITIVES

(included by volume) without losing their “100% agave” classification.

Legal additives include:

✔ Caramel coloring
✔ Natural flavor extracts
✔ Oak extract
✔ Glycerin
✔ Sugar-based flavor compounds

These are used to:

Adjust color
Smooth mouthfeel
Add sweetness
Normalize batch variations
Create consistency year-over-year

And these additives do NOT have to appear on the label.

Consumers often assume transparency where the law does not require it.

The Additive-Free Controversy

Distilleries that wanted transparency partnered with:

Tequila Matchmaker
Additive-Free Alliance

Together, these groups verified:

Zero flavorings
Zero sweeteners
Zero glycerin
Zero oak extract
Zero undisclosed additives

But then:

The CRT forced these programs to shut down (2023–2024)

The regulator did the following:

❌ Prohibited the use of “Additive-Free”
❌ Ordered removal of additive-free lists
❌ Threatened distilleries with sanctions for participating
❌ Suspended Patrón exports over additive-free marketing
❌ Categorically banned additive-free marketing claims

This created total transparency loss.

The CRT’s decision directly impacts the Costco case — Costco is legally forbidden from voluntarily stating “additive-free” even if true.

4. What Costco Can Control vs. What Costco Can NOT Control

Costco Controls:

Brand name (“Kirkland Signature”)
Bottle shape, cork, label style
Packaging quality
Case quantity
Retail pricing
Distribution within Arkansas and nationally

And yes — in Arkansas, Costco sells liquor at or below MSRP compared to many local stores. Evidence is anecdotal but consistent across consumer observations.

**Costco Does NOT Control:**

Whether the tequila qualifies as “100% agave”
✔ CRT controls
Whether additives were used
✔ CRT controls
Whether sugar sources meet purity standards
✔ Distillery + CRT control
Whether the tequila is allowed to be exported
✔ CRT controls
What production claims appear on the label
✔ CRT controls
Whether “additive-free” can be mentioned
✔ CRT forbids it

Costco is essentially a retailer, not a producer or certifying authority.

5. Why Costco Has Very Little to Do with the Core Issue

When you examine the case carefully, Costco is only involved because:

A) They sold a product with a CRT-approved label

They are legally obligated to accept the label.

B) They did not distill the tequila

They have no access to internal fermentation logs, additive logs, or agave sugar documentation.

C) They cannot legally alter CRT-approved production claims

If they remove “100% Blue Weber Agave,” they cannot legally import it.

D) The CRT restricts transparency

Costco cannot claim “no additives,” even if true.

E) Costco is a downstream actor

Every tequila retailer in Arkansas is in the exact same legal position.

Costco’s role is passive:

They selected a reputable distillery.
They used the regulator-approved label.
They sold the tequila at a competitive price.

6. Other Major Brands Facing the Same “Purity” Allegations

Costco is not alone — dozens of brands face similar (or identical) allegations:

Casamigos (George Clooney’s former brand)

Sued for allegedly using non-agave ethanol
Uses the same isotope testing methodology
Case is ongoing
Same allegations as Costco

Don Julio (Diageo)

Included in Casamigos-class lawsuits
Targeted over “100% agave” claim integrity

Cincoro (Michael Jordan & Celebrities)

Sued for misrepresenting 100% agave status
Uses identical scientific allegations

Clase Azul

Frequently accused of additive usage (legal under NOM)
Not sued but heavily scrutinized

818 Tequila (Kendall Jenner)

Faced lawsuits over trademark, but also criticized heavily in additive discussions

Patrón

Had exports suspended over additive-free marketing (not purity, but regulatory conflict)

They are not about retailers.
They are about:

CRT authority
NOM allowances
Additive opacity
Distillery self-reporting
Consumer misunderstanding of “100% agave”
Scientific testing disputes

Costco is simply the biggest target because:

It sells at low prices
It moves high volume
It has only one Arkansas store, making it highly visible locally

7. Arkansas Context

Costco has one location in Arkansas — the Little Rock warehouse at:

16901 Chenal Pkwy, Little Rock, AR 72223

This means:

The Kirkland tequila at issue is sold in only one Arkansas county
Pricing is generally below or at MSRP for most spirits
Costco’s strong pricing likely intensifies local scrutiny
Many consumers buy it because the value is unmatched in the state

As an Arkansas-based reviewer:

ArkansasLiquor.com is not affiliated with Costco in any way,
but I shop there for liquor due to their excellent pricing compared to other local retailers.

8. Final Thoughts — This Is a Regulatory Problem, Not a Costco Problem

The truth is simple:

Costco does not distill tequila
Costco does not certify agave purity
Costco does not approve labels
Mexico prohibits additive-free disclosure
CRT controls every production claim
Additives are legal in 100% agave tequila
Dozens of brands face identical lawsuits

Costco is simply the first big-box retailer pulled into a system-wide transparency problem rooted in:

Mexican regulatory structure
Distillery practices
Legal additive allowances
CRT’s aggressive policing of transparency
Consumer misunderstanding of “100% agave”

For Arkansas drinkers:
Despite the lawsuit, Costco’s Kirkland tequilas remain popular because they offer genuine value in Little Rock. But the larger industry conversation — purity, additives, transparency — is far from over.

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