Heineken USA Inc. falsely markets Tecate beer as a Mexican product, according to a lawsuit, when it is actually brewed in Holland.
Miguel Schelmetty of East Harlem filed a class action lawsuit against the White Plains affiliate of the Dutch company on Nov. 27 in U.S. District Court, demanding at least $5 million on behalf of beer buyers in New York and California.
Heineken”™s alleged misrepresentation “is deceptive and misleading to consumers who want a Mexican beer brewed in Mexico,” the lawsuit states, and enables the brewer to sell “more of the product and at higher prices than it would have in the absence of this misconduct.”
Heineken spokesman Tom Hunt said he can’t comment on pending litigation, but he pointed to a tweet on Tecate’s twitter account.
The company noted that a limited run of Tecate was produced outside of Mexico, when its Mexican brewery was locked down because of Covid-19 restrictions, and that production resumed in Mexico in June.
Tecate lagers are named after the city of Tecate, in Baja California, Mexico, where they were first produced in 1943. Heineken NV bought Tecate, as well as the Dos Equis and Sol brands, for $5.5 billion in 2010.
The acquisition helped Heineken tap into growing demand for Mexican beers. From 2009 to 2016, according to the complaint, Mexican beer sales increased by 8% annually, while American brews declined 4%.
The lawsuit attributes the popularity to a growing Mexican-American population and to consumer demand for authenticity, particularly for products associated with specific places.
Tecate emphasizes its Mexican heritage, the complaint states. The label, for instance, features a Meso-American typeface and the mythical Aztec eagle.
Its website declares, “Born and brewed in the land we are proud to share our name with: Tecate.” A photo of a Tecate brewery states, in Spanish, that the product is made in Tecate, Baja California, Mexico.
But Schelmetty claims that Tecate is not brewed in Mexico, citing a beer can label that states “brewed and canned by HBBV Amsterdam, Holland” and “imported by Cervezas Mexicanas, White Plains, NY.”
The alleged deceptions, according to the complaint, enable Heineken to sell Tecate for a higher price to unsuspecting buyers.
Heineken is accused of negligent misrepresentation, breaches of warranty, fraud and unjust enrichment.
Schelmetty is asking the court to declare the case a class action, order Heineken to correct its practices and award unspecified damages.
Hunt said Heineken is “confident in the merits of our case.”
The case was brought by Great Neck, Long Island attorney Spencer Sheehan.
