Class Action Against Heineken’s Dos Equis Ranch Water Is the Latest in a String of Suits Alleging the Lack of Tequila in Canned Beverages

A class action suit against Dos Equis Ranch Water claims that Heineken misled consumers. It’s the latest in several suits filed against similar canned ready-to-drink beverages. Photo: Dos Equis

A class action suit alleges that Heineken’s Dos Equis Ranch Water “Classic Lime” hard seltzer is guilty of false advertising given that it contains neither tequila nor lime.

Ranch water has been taking off in popularity across the United States over the past two years, particularly in the canned ready-to-drink (RTD) market. The cocktail, which originated in West Texas in the 1960s, is typically made using sparkling mineral water, tequila and lime.

The new suit alleges that the inclusion of “ranch water”, “Classic Lime” and “hard seltzer” in Dos Equis’ product packaging all constitute misleading advertising.

“Nowhere on any visible part of the packaging or label are consumers told they are not buying a beverage without tequila but one actually classified as a flavored beer,” states the suit.

In place of tequila, the product uses alcohol from a fermented sugar base. Instead of lime, the ingredients listed on the packaging state “Natural Flavors [and] Citric Acid.”

The suit goes on to state, “‘Hard Seltzer” beneath ‘Ranch Water’ contributes to the expectation the product will contain tequila because ‘hard’ in the context of alcohol refers to distilled spirits or ‘hard liquor.'”

It’s unclear whether this final allegation will hold water in court given that widely-popular hard seltzer brands like Truly and White Claw are also made using a malted alcohol base.

Nonetheless, this new suit is the latest of several that have been filed against tequila RTDs under similar circumstances.

Lime-A-Rita faced a similar class action suit earlier this year. Photo: PJiiiJane / Shutterstock.com

In July, an estimated $6,000,000 class action suit alleging the lack of tequila in Lime-A-Rita canned beverages was successfully settled against Budweiser producer Anheuser-Busch.

The terms of the settlement allowed any customers who purchased Lima-A-Rita or related Rita brand beverages between 2018 and 2022 to apply for a refund.

Brands like Lime-A-Rita and Dos Equis Ranch Water use malted alcohol instead of hard liquor for several reasons.

For one, states like New York have strict laws forbidding the sale of hard liquor in convenience stores and groceries. For companies hoping to sell their products alongside lucrative brands like Truly and White Claw at the corner store, switching to malt alcohol is an easy workaround to increase distribution.

Additionally, heavier taxes are levied on products containing hard liquor than soft liquor.

As a result, you’ll tend to see companies get creative in the production of alcoholic RTDs. There is even a Cafe Agave Spiked Cold Brew on the market made using white wine.

This newest class action suit against Heineken follows a pattern of consumers who have been left dissatisfied by advertising for canned RTDs.

The suit is looking to cover consumers in Illinois, Texas, South Dakota, Wyoming, Idaho, Alaska, Iowa, Mississippi, West Virginia, Arkansas, South Carolina, Maine and Utah who bought Dos Equis Ranch Water during the applicable statute of limitations period.

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