Costco Sued Over One of Its Kirkland Signature Products (It’s a Popular Copycat)

Costco shoppers, take note: a class action lawsuit filed against the warehouse retailer alleges that its tequilas might not be as pure as the company claims.

If you have a bottle of Kirkland Signature tequila at home, take a closer look at the label. It proclaims that the liquor inside is made with “100% agave.” The lawsuit says that a scientific analysis conducted on the spirits found that the tequilas had been “adulterated” with “ethanol not derived from agave plants.”

It claims that the “100% agave” label allows Costco to sell the tequila at a higher price, which is deceptive marketing that tricks consumers into buying an inferior product instead of a premium spirit. 

Which Tequilas Are Named in the Lawsuit? 

The lawsuit names five different tequilas sold under the Kirkland Signature brand: tequila blanco, tequila añejo, tequila reposado, tequila añejo cristalino, and tequila extra añejo. The prices for each bottle range between $19 and $49, depending on product and location, according to the suit.

The Problem With Costco’s Tequila

If you’re not familiar with how tequila is made, here’s how it works: The heart of the blue agave plant, also called a piña, is cut from the plant and cooked to convert its starches into sugars that can be fermented into alcohol. Then, the cooked plant matter is mashed and fermented before being distilled into the tequila that you drink.

Tequila doesn’t have to be 100% agave. Mexico’s Tequila Regulatory Council says a spirit only needs to be made with 51% agave to be considered tequila. The lawsuit filed against Costco claims that its tequilas might not meet that standard because they have been adulterated with a “significant” amount of ethanol (read: alcohol) from another source, like corn or sugar cane. 

So-called mixto tequilas, which are made by fermenting agave with other sugars, are common on the market. But unlike 100% agave tequilas, mixto tequilas generally aren’t considered a premium product. Some drinks professionals say that mixto tequilas are harsh in flavor, burn on the way down, and lack the flavor complexity of real tequila.

What Does This Mean for Costco’s Tequila?

At this point, it’s too early to tell whether or not the lawsuit’s claims against Costco are true—a court hasn’t yet ruled on whether or not the allegations have merit, and Costco hasn’t offered a response. But it wouldn’t be the first time that a tequila brand has been busted for misusing the “100% agave” claim. At least four major brands—including Don Julio, Casamigos, and Kendall Jenner’s 818 Tequila—are facing similar class action suits claiming that they’re selling adulterated tequila. 

What the lawsuit claims is that Costco sells cheaply made tequila to consumers while insisting that it's offering them a premium product. It alleges that the “100% agave” label makes consumers think the tequila is “cleaner” and "healthier," making them willing to pay a little more than they would for a bottom-shelf bottle. The suit doesn’t make claims that the product is unsafe or unhealthy, just that it’s not as “pure” or fancy as Costco insists that it is. 

As such, if you enjoy the taste—and price point—of a Kirkland tequila, it’s totally safe to keep on sipping.