New York attorney Spencer Sheehan filed a class action lawsuit against Heineken USA Incorporated, alleging its Dos Equis “Ranch Water” is just flavored beer rather than the traditional tequila and lime.
The proposed class action was filed on behalf of plaintiff Caleb Pautz in the U.S. District Court for the Southern District of Illinois.
According to the complaint, Heineken manufactures “Ranch Water” under the Dos Equis brand, which it describes as “hard seltzer” and “classic lime.”
“Ranch water likely originated in the 1960s in the blazing sun on West Texas ranches where cowboys worked long days,” Sheehan wrote. “They would often begin the day with a thermos full of tequila and ice, and after lunch they would add lime, a staple of their Tex-Mex cuisine.”
The suit states that carbonated water was added at some point to “improve refreshment.”
Sheehan wrote that ranch water gained popularity due to its consistency and simplicity. He added that consumers who purchase Dos Equis ranch water expect the product to contain ingredients associated with the classic drink.
“First, ‘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,’” the suit states.
However, Sheehan wrote that Heineken’s ranch water does not contain tequila.
“The representations are misleading because though the product contains carbonated water, it does not contain tequila or lime, shown through their absence from the ingredient list on the side of the box and cans,” he wrote.
The ingredient list includes carbonated water, alcohol (from sugar), natural flavors, citric acid, and sodium citrate. The suit states that the drink contains alcohol from a fermented sugar base instead of tequila from agave. Additionally, the drink contains natural flavors and citric acid instead of lime.
“Natural flavors refers to a synthesized blend of substances prepared in a laboratory which may contain not more than a de minimis or negligible amount of lime,” Sheehan wrote.
“That the label states’ classic lime’ makes it more likely purchasers will expect real lime, because ‘classic’ is understood as original or unmodified, like an actual lime,” he added.
Sheehan alleges the ranch water is actually flavored beer.
“The representations are misleading because ‘hard seltzer’ does not indicate the class of malt beverages the product fires in, preventing consumers from knowing the type of alcoholic drink they are buying,” Sheehan wrote.
Sheehan alleges consumers paid more for the product than it was worth. They also chose the Dos Equis product over others due to the alleged misrepresentations.
“Plaintiff is unable to rely on the labeling and representations not only of this product, but other brands of ranch water, because he is unsure whether those representations are truthful,” Sheehan wrote.
The class action alleges violations of the Illinois Consumer Fraud and Deceptive Business Practices Act and of the State Consumer Fraud Acts. The suit also alleges the defendant engaged in negligent misrepresentation, fraud, unjust enrichment and breach of express warranty, implied warranty of merchantability and the Magnuson Moss Warranty Act.
Sheehan seeks injunctive relief directing the defendant to correct the challenged practices, monetary damages, interest, court costs and attorneys fees.