{"id":1012,"date":"2025-11-16T01:09:42","date_gmt":"2025-11-16T07:09:42","guid":{"rendered":"https:\/\/arkansasliquor.com\/?p=1012"},"modified":"2025-11-23T19:17:10","modified_gmt":"2025-11-24T01:17:10","slug":"the-costco-tequila-lawsuit-a-complete-breakdown-for-arkansas-consumers","status":"publish","type":"post","link":"https:\/\/arkansasliquor.com\/index.php\/2025\/11\/16\/the-costco-tequila-lawsuit-a-complete-breakdown-for-arkansas-consumers\/","title":{"rendered":"The Costco Tequila Lawsuit: A Complete Breakdown for Arkansas Consumers"},"content":{"rendered":"\n

A Deep Dive Into the Allegations, Tequila Labeling Laws, Additive Rules, CRT Authority, and Why Costco Is Not the Real Issue<\/em><\/h3>\n\n\n\n

Important Note:<\/strong> 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.<\/em><\/p>\n\n\n\n

\n\n\n\n
\"\"<\/figure>\n\n\n\n

1. The Lawsuit Against Costco\u2019s Kirkland Tequila \u2014 What Is Being Alleged?<\/strong><\/h1>\n\n\n\n

In late 2025, a class-action lawsuit was filed accusing Costco of mislabeling its Kirkland Signature tequila<\/strong> as \u201c100% Blue Weber Agave.\u201d The plaintiffs argue:<\/p>\n\n\n\n

\n\n\n\n

Allegation #1 \u2014 The Tequila Contains Non-Agave Ethanol<\/strong><\/h3>\n\n\n\n

Plaintiffs claim that independent laboratory testing \u2014 using Nuclear Magnetic Resonance (NMR)<\/strong> and isotope ratio analysis<\/strong> \u2014 indicates the presence of:<\/p>\n\n\n\n

    \n
  • Cane-derived ethanol<\/strong>, or<\/li>\n\n\n\n
  • Other non-agave sugars<\/strong>,<\/li>\n<\/ul>\n\n\n\n

    suggesting the tequila may not meet the Mexican regulatory definition of 100% agave tequila<\/strong>.<\/p>\n\n\n\n

    These are the same tests used in:<\/p>\n\n\n\n

      \n
    • The Casamigos lawsuit<\/li>\n\n\n\n
    • The Don Julio lawsuit<\/li>\n\n\n\n
    • The Cincoro lawsuit<\/li>\n\n\n\n
    • The general wave of \u201ctequila purity\u201d lawsuits affecting the industry<\/li>\n<\/ul>\n\n\n\n

      These lawsuits all repeat nearly identical claims and cite similar lab methodologies.<\/p>\n\n\n\n

      \n\n\n\n

      Allegation #2 \u2014 Costco Misled Consumers Into Paying Premium Prices<\/strong><\/h3>\n\n\n\n

      By labeling the bottle as \u201c100% Blue Weber Agave,\u201d plaintiffs argue Costco:<\/p>\n\n\n\n

        \n
      • Positioned the tequila as premium<\/li>\n\n\n\n
      • Allowed consumers to believe the product was free of non-agave sugars<\/li>\n\n\n\n
      • Benefited financially from perceived agave purity<\/li>\n<\/ul>\n\n\n\n

        Worth noting:
        The lawsuit does not allege any health or safety issue<\/strong>, only labeling and purity representation.<\/p>\n\n\n\n

        \n\n\n\n

        Allegation #3 \u2014 Costco Should Have Known Better<\/strong><\/h3>\n\n\n\n

        The plaintiffs claim Costco \u201cknew or should have known\u201d the tequila wasn’t 100% agave because of:<\/p>\n\n\n\n

          \n
        • Its industry relationships<\/li>\n\n\n\n
        • Market position<\/li>\n\n\n\n
        • Purchasing power<\/li>\n\n\n\n
        • Contracted private-label agreements<\/li>\n<\/ul>\n\n\n\n

          This is speculative and unproven.<\/p>\n\n\n\n

          \n\n\n\n

          Reality Check: The Case Is Unresolved<\/em><\/strong><\/h3>\n\n\n\n

          There has been:<\/p>\n\n\n\n

            \n
          • No settlement<\/strong><\/li>\n\n\n\n
          • No judgment<\/strong><\/li>\n\n\n\n
          • No class certification<\/strong><\/li>\n<\/ul>\n\n\n\n

            The lawsuit is ongoing<\/em>, and the claims remain unproven.<\/p>\n\n\n\n

            \n\n\n\n

            2. The Tequila Labeling System: CRT Controls Everything<\/strong><\/h1>\n\n\n\n

            Most consumers don\u2019t know this:
            Costco does NOT write the production-related parts of its tequila label.
            Mexico does.<\/strong><\/p>\n\n\n\n

            Tequila labeling is governed by:<\/p>\n\n\n\n

            NOM-006-SCFI-2012<\/strong><\/h2>\n\n\n\n

            Mexico\u2019s official tequila standard.<\/p>\n\n\n\n

            And enforced by:<\/p>\n\n\n\n

            CRT \u2014 Consejo Regulador del Tequila<\/strong><\/h2>\n\n\n\n

            Mexico\u2019s federal tequila regulator.<\/p>\n\n\n\n

            This governing system controls:<\/p>\n\n\n\n

              \n
            • What can appear on a label<\/li>\n\n\n\n
            • What MUST appear<\/li>\n\n\n\n
            • What can NEVER appear<\/li>\n\n\n\n
            • How sugar sources are classified<\/li>\n\n\n\n
            • Whether \u201c100% de agave\u201d is legally approved<\/li>\n\n\n\n
            • Whether a tequila can be exported at all<\/li>\n<\/ul>\n\n\n\n
              \n\n\n\n

              How Label Approval Works:<\/strong><\/h2>\n\n\n\n

              Step 1 \u2014 The Distillery Submits Label & Formula to the CRT<\/strong><\/h3>\n\n\n\n

              The producer provides the CRT with:<\/p>\n\n\n\n

                \n
              • Production logs<\/li>\n\n\n\n
              • Sugar-source documentation<\/li>\n\n\n\n
              • Distillation records<\/li>\n\n\n\n
              • Additive declarations<\/li>\n\n\n\n
              • Batch chemistry<\/li>\n\n\n\n
              • Proof and aging documentation<\/li>\n<\/ul>\n\n\n\n

                Step 2 \u2014 The CRT Reviews and Certifies the Label<\/strong><\/h3>\n\n\n\n

                If the CRT determines the tequila qualifies as \u201c100% agave,\u201d they require<\/strong> this phrase to appear.<\/p>\n\n\n\n

                Step 3 \u2014 Approval Stamp + NOM Number<\/strong><\/h3>\n\n\n\n

                The CRT certifies the tequila with a NOM number<\/strong> and approves the final label.<\/p>\n\n\n\n

                Step 4 \u2014 U.S. Retailers MUST Sell the Bottle Exactly As Certified<\/strong><\/h3>\n\n\n\n

                Costco cannot alter:<\/p>\n\n\n\n

                  \n
                • \u201c100% Blue Weber Agave\u201d<\/li>\n\n\n\n
                • NOM number<\/li>\n\n\n\n
                • Additive disclosures (or lack thereof)<\/li>\n\n\n\n
                • Production method information<\/li>\n\n\n\n
                • CRT-certified statements<\/li>\n<\/ul>\n\n\n\n

                  If Costco changes one single production-related phrase, it voids export legality under Mexican law.<\/p>\n\n\n\n

                  \n\n\n\n

                  3. What Tequila Distilleries Are Allowed To Add \u2013 Even in \u201c100% Agave\u201d Tequila<\/strong><\/h1>\n\n\n\n

                  This is the part almost no consumer understands:<\/p>\n\n\n\n

                  \u201c100% agave\u201d does NOT mean absolutely nothing added.<\/strong><\/h2>\n\n\n\n

                  Under NOM-006, distilleries may legally add up to:<\/p>\n\n\n\n

                  1% TOTAL ADDITIVES<\/strong><\/h3>\n\n\n\n

                  (included by volume) without losing their \u201c100% agave\u201d classification.<\/p>\n\n\n\n

                  Legal additives include:<\/p>\n\n\n\n

                    \n
                  • \u2714 Caramel coloring<\/strong><\/li>\n\n\n\n
                  • \u2714 Natural flavor extracts<\/strong><\/li>\n\n\n\n
                  • \u2714 Oak extract<\/strong><\/li>\n\n\n\n
                  • \u2714 Glycerin<\/strong><\/li>\n\n\n\n
                  • \u2714 Sugar-based flavor compounds<\/strong><\/li>\n<\/ul>\n\n\n\n

                    These are used to:<\/p>\n\n\n\n

                      \n
                    • Adjust color<\/li>\n\n\n\n
                    • Smooth mouthfeel<\/li>\n\n\n\n
                    • Add sweetness<\/li>\n\n\n\n
                    • Normalize batch variations<\/li>\n\n\n\n
                    • Create consistency year-over-year<\/li>\n<\/ul>\n\n\n\n

                      And these additives do NOT have to appear on the label.<\/strong><\/h3>\n\n\n\n

                      Consumers often assume transparency where the law does not require it.<\/p>\n\n\n\n

                      \n\n\n\n

                      The Additive-Free Controversy<\/strong><\/h2>\n\n\n\n

                      Distilleries that wanted transparency partnered with:<\/p>\n\n\n\n

                        \n
                      • Tequila Matchmaker<\/strong><\/li>\n\n\n\n
                      • Additive-Free Alliance<\/strong><\/li>\n<\/ul>\n\n\n\n

                        Together, these groups verified:<\/p>\n\n\n\n

                          \n
                        • Zero flavorings<\/li>\n\n\n\n
                        • Zero sweeteners<\/li>\n\n\n\n
                        • Zero glycerin<\/li>\n\n\n\n
                        • Zero oak extract<\/li>\n\n\n\n
                        • Zero undisclosed additives<\/li>\n<\/ul>\n\n\n\n

                          But then:<\/p>\n\n\n\n

                          The CRT forced these programs to shut down (2023\u20132024)<\/strong><\/h3>\n\n\n\n

                          The regulator did the following:<\/p>\n\n\n\n

                          \u274c Prohibited the use of \u201cAdditive-Free\u201d
                          \u274c Ordered removal of additive-free lists
                          \u274c Threatened distilleries with sanctions for participating
                          \u274c Suspended Patr\u00f3n exports over additive-free marketing
                          \u274c Categorically banned additive-free marketing claims<\/p>\n\n\n\n

                          This created total transparency loss.<\/p>\n\n\n\n

                          The CRT\u2019s decision directly impacts the Costco case \u2014 Costco is legally forbidden from voluntarily stating \u201cadditive-free\u201d even if true.<\/p>\n\n\n\n

                          \n\n\n\n

                          4. What Costco Can Control vs. What Costco Can NOT Control<\/strong><\/h1>\n\n\n\n

                          Costco Controls:<\/strong><\/h2>\n\n\n\n
                            \n
                          • Brand name (\u201cKirkland Signature\u201d)<\/li>\n\n\n\n
                          • Bottle shape, cork, label style<\/li>\n\n\n\n
                          • Packaging quality<\/li>\n\n\n\n
                          • Case quantity<\/li>\n\n\n\n
                          • Retail pricing<\/li>\n\n\n\n
                          • Distribution within Arkansas and nationally<\/li>\n<\/ul>\n\n\n\n

                            And yes \u2014 in Arkansas, Costco sells liquor at or below MSRP<\/strong> compared to many local stores. Evidence is anecdotal but consistent across consumer observations.<\/p>\n\n\n\n

                            \n\n\n\n

                            Costco Does NOT<\/em> Control:<\/strong><\/h2>\n\n\n\n
                              \n
                            • Whether the tequila qualifies as \u201c100% agave\u201d
                              \u2714 CRT controls<\/li>\n\n\n\n
                            • Whether additives were used
                              \u2714 CRT controls<\/li>\n\n\n\n
                            • Whether sugar sources meet purity standards
                              \u2714 Distillery + CRT control<\/li>\n\n\n\n
                            • Whether the tequila is allowed to be exported
                              \u2714 CRT controls<\/li>\n\n\n\n
                            • What production claims appear on the label
                              \u2714 CRT controls<\/li>\n\n\n\n
                            • Whether \u201cadditive-free\u201d can be mentioned
                              \u2714 CRT forbids it<\/li>\n<\/ul>\n\n\n\n

                              Costco is essentially a retailer<\/strong>, not a producer<\/strong> or certifying authority<\/strong>.<\/p>\n\n\n\n

                              \n\n\n\n

                              5. Why Costco Has Very Little to Do with the Core Issue<\/strong><\/h1>\n\n\n\n

                              When you examine the case carefully, Costco is only involved because:<\/p>\n\n\n\n

                              A) They sold a product with a CRT-approved label<\/strong><\/h3>\n\n\n\n

                              They are legally obligated to accept the label.<\/p>\n\n\n\n

                              B) They did not distill the tequila<\/strong><\/h3>\n\n\n\n

                              They have no access to internal fermentation logs, additive logs, or agave sugar documentation.<\/p>\n\n\n\n

                              C) They cannot legally alter CRT-approved production claims<\/strong><\/h3>\n\n\n\n

                              If they remove \u201c100% Blue Weber Agave,\u201d they cannot legally import it.<\/p>\n\n\n\n

                              D) The CRT restricts transparency<\/strong><\/h3>\n\n\n\n

                              Costco cannot claim \u201cno additives,\u201d even if true.<\/p>\n\n\n\n

                              E) Costco is a downstream actor<\/strong><\/h3>\n\n\n\n

                              Every tequila retailer in Arkansas is in the exact same legal position.<\/p>\n\n\n\n

                              Costco’s role is passive:<\/p>\n\n\n\n

                                \n
                              • They selected a reputable distillery.<\/li>\n\n\n\n
                              • They used the regulator-approved label.<\/li>\n\n\n\n
                              • They sold the tequila at a competitive price.<\/li>\n<\/ul>\n\n\n\n
                                \n\n\n\n

                                6. Other Major Brands Facing the Same \u201cPurity\u201d Allegations<\/strong><\/h1>\n\n\n\n

                                Costco is not alone \u2014 dozens of brands face similar (or identical) allegations:<\/p>\n\n\n\n

                                \n\n\n\n

                                Casamigos (George Clooney\u2019s former brand)<\/strong><\/h2>\n\n\n\n
                                  \n
                                • Sued for allegedly using non-agave ethanol<\/li>\n\n\n\n
                                • Uses the same isotope testing methodology<\/li>\n\n\n\n
                                • Case is ongoing<\/li>\n\n\n\n
                                • Same allegations as Costco<\/li>\n<\/ul>\n\n\n\n

                                  Don Julio (Diageo)<\/strong><\/h2>\n\n\n\n
                                    \n
                                  • Included in Casamigos-class lawsuits<\/li>\n\n\n\n
                                  • Targeted over \u201c100% agave\u201d claim integrity<\/li>\n<\/ul>\n\n\n\n

                                    Cincoro (Michael Jordan & Celebrities)<\/strong><\/h2>\n\n\n\n
                                      \n
                                    • Sued for misrepresenting 100% agave status<\/li>\n\n\n\n
                                    • Uses identical scientific allegations<\/li>\n<\/ul>\n\n\n\n

                                      Clase Azul<\/strong><\/h2>\n\n\n\n
                                        \n
                                      • Frequently accused of additive usage (legal under NOM)<\/li>\n\n\n\n
                                      • Not sued but heavily scrutinized<\/li>\n<\/ul>\n\n\n\n

                                        818 Tequila (Kendall Jenner)<\/strong><\/h2>\n\n\n\n
                                          \n
                                        • Faced lawsuits over trademark, but also criticized heavily in additive discussions<\/li>\n<\/ul>\n\n\n\n

                                          Patr\u00f3n<\/strong><\/h2>\n\n\n\n
                                            \n
                                          • Had exports suspended over additive-free marketing (not purity, but regulatory conflict)<\/li>\n<\/ul>\n\n\n\n
                                            \n\n\n\n

                                            What all these cases share:<\/strong><\/h3>\n\n\n\n

                                            They are not about retailers.
                                            They are about:<\/p>\n\n\n\n

                                              \n
                                            • CRT authority<\/li>\n\n\n\n
                                            • NOM allowances<\/li>\n\n\n\n
                                            • Additive opacity<\/li>\n\n\n\n
                                            • Distillery self-reporting<\/li>\n\n\n\n
                                            • Consumer misunderstanding of \u201c100% agave\u201d<\/li>\n\n\n\n
                                            • Scientific testing disputes<\/li>\n<\/ul>\n\n\n\n

                                              Costco is simply the biggest target because:<\/p>\n\n\n\n

                                                \n
                                              • It sells at low prices<\/strong><\/li>\n\n\n\n
                                              • It moves high volume<\/strong><\/li>\n\n\n\n
                                              • It has only one Arkansas store<\/strong>, making it highly visible locally<\/li>\n<\/ul>\n\n\n\n
                                                \n\n\n\n

                                                7. Arkansas Context<\/strong><\/h1>\n\n\n\n

                                                Costco has one location in Arkansas<\/strong> \u2014 the Little Rock warehouse at:<\/p>\n\n\n\n

                                                16901 Chenal Pkwy, Little Rock, AR 72223<\/strong><\/p>\n\n\n\n

                                                This means:<\/p>\n\n\n\n

                                                  \n
                                                • The Kirkland tequila at issue is sold in only one Arkansas county<\/li>\n\n\n\n
                                                • Pricing is generally below or at MSRP<\/strong> for most spirits<\/li>\n\n\n\n
                                                • Costco\u2019s strong pricing likely intensifies local scrutiny<\/li>\n\n\n\n
                                                • Many consumers buy it because the value is unmatched<\/strong> in the state<\/li>\n<\/ul>\n\n\n\n

                                                  As an Arkansas-based reviewer:<\/p>\n\n\n\n

                                                  \n

                                                  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.<\/em><\/p>\n<\/blockquote>\n\n\n\n

                                                  \n\n\n\n
                                                  \n\n\n\n

                                                  8. Final Thoughts \u2014 This Is a Regulatory Problem, Not a Costco Problem<\/strong><\/h1>\n\n\n\n

                                                  The truth is simple:<\/p>\n\n\n\n

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

                                                    Costco is simply the first big-box retailer pulled into a system-wide transparency problem<\/strong> rooted in:<\/p>\n\n\n\n

                                                      \n
                                                    • Mexican regulatory structure<\/li>\n\n\n\n
                                                    • Distillery practices<\/li>\n\n\n\n
                                                    • Legal additive allowances<\/li>\n\n\n\n
                                                    • CRT\u2019s aggressive policing of transparency<\/li>\n\n\n\n
                                                    • Consumer misunderstanding of \u201c100% agave\u201d<\/li>\n<\/ul>\n\n\n\n

                                                      For Arkansas drinkers:
                                                      Despite the lawsuit, Costco\u2019s Kirkland tequilas remain popular because they offer genuine value in Little Rock<\/strong>. But the larger industry conversation \u2014 purity, additives, transparency \u2014 is far from over.<\/p>\n\n\n\n

                                                      \n","protected":false},"excerpt":{"rendered":"

                                                      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 […]<\/p>\n","protected":false},"author":1,"featured_media":1049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_gspb_post_css":"","_lmt_disableupdate":"","_lmt_disable":"","_EventAllDay":false,"_EventTimezone":"","_EventStartDate":"","_EventEndDate":"","_EventStartDateUTC":"","_EventEndDateUTC":"","_EventShowMap":false,"_EventShowMapLink":false,"_EventURL":"","_EventCost":"","_EventCostDescription":"","_EventCurrencySymbol":"","_EventCurrencyCode":"","_EventCurrencyPosition":"","_EventDateTimeSeparator":"","_EventTimeRangeSeparator":"","_EventOrganizerID":[],"_EventVenueID":[],"_OrganizerEmail":"","_OrganizerPhone":"","_OrganizerWebsite":"","_VenueAddress":"","_VenueCity":"","_VenueCountry":"","_VenueProvince":"","_VenueState":"","_VenueZip":"","_VenuePhone":"","_VenueURL":"","_VenueStateProvince":"","_VenueLat":"","_VenueLng":"","_VenueShowMap":false,"_VenueShowMapLink":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-1012","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"blocksy_meta":[],"acf":[],"yoast_head":"\nThe Costco Tequila Lawsuit: A Complete Breakdown for Arkansas Consumers - 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