Class Actions Against Alcohol Giants Continue to Gain Traction

A consumer in Illinois is challenging Anheuser-Busch’s advertising of its new Cacti Agave Spiked Seltzer product, alleging that the product is mislabeled because it does not contain any agave spirits, such as tequila and mezcal. According to the lawsuit, the product, which was the result of a recent collaboration between rapper Travis Scott and Anheuser-Busch, is deceptively advertised as being “Made with 100% Premium Blue Agave from Mexico” when the product only contains agave syrup and not any tequila or mezcal.

The Cacti lawsuit follows a trend of similar class actions brought against alcohol purveyors for deceptive labeling. Earlier this year, two California consumers sued Boston Beer Company, challenging the company’s labeling of its Truly Hard Seltzers. According to that lawsuit, the labeling of the seltzers contains misleading imagery and words which dupe consumers into believing the seltzers contain real fruit, when they do not. That lawsuit is pending.

Faruqi & Faruqi has been at the forefront of this litigation trend. In 2020, Faruqi & Faruqi brought a consumer false advertising suit against Anheuser-Busch in both New York and Missouri, challenging the packaging of Ritas® brand Sparkling Margaritas, Mojitos, and Rosé. According to the class action lawsuit, the canned cocktails are deceptively advertised as containing distilled spirits and wine when they are flavored beers. In 2021, Faruqi & Faruqi defeated two separate motions to dismiss the lawsuits. The lawsuits are both pending.