Yerba Mate Maker Hit with ‘Cane Juice’ Labeling Class Action Lawsuit

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Guayaki Sustainable Rainforest Products Inc. is facing a class action lawsuit that alleges the company tricks consumers into believing their yerba mate products are healthier than they really are by listing sugar as “organic evaporated cane juice” on the label.

According to the class action lawsuit, Guayaki is the largest U.S. manufacturer of yerba mate, a caffeinated tea-like drink from South America that is brewed from the leaves of the mate plant. Guayaki allegedly markets its yerba mate products as a healthy beverage, claiming that yerba mate “Provides a Wealth of Nutrients” and is “more nutritious than green tea.”

The class action lawsuit was initially filed by plaintiff Kirstiema Cowan in January but was removed to California federal court on Monday. Cowan alleges Guayaki intentionally mislabels its yerba mate beverages as containing “organic evaporated cane juice” to appeal to health-conscious consumers who want to limit their sugar intake. She alleges that this mislabeling violates state and federal consumer protection laws.

Cowan alleges that her family has a history of diabetes and that she wants to avoid developing the disease if possible. Therefore, she carefully limits her sugar intake to reduce her chances of developing diabetes. After reviewing the label on Guayaki’s yerba mate products, Cowan began purchasing several varieties of yerba mate, including Pure Heart Raspberry Mate, Pure Empower Mint Mate and Pure Mind Pomegranate Mate, between May and August 2013.

“Plaintiff read and relied upon the ingredients listed on the Class Products at the time of purchase, and selected Guayaki products over less expensive alternatives because she believed the Class Products contained lesser amounts of sugar and was healthier for her,” the class action lawsuit says.

Cowan claims that she would not have purchased the products, would have purchased fewer of the products or would have paid less for the products had they been properly labeled as containing sugar, cane sugar, cane syrup and/or dried cane syrup.

According to the class action lawsuit, the U.S. Food & Drug Administration (FDA) has specifically warned companies that the term “evaporated cane juice” is false and misleading, because consumers may believe the products actually contain juice. “Nevertheless, Guayaki has made, and continues to make, false, and deceptive claims on its misbranded Class Products in violation of federal and California laws that govern the types of representations that can be made on food labels,” the evaporated cane juice lawsuit says.

Cowan filed the class action lawsuit on behalf of herself and all individuals in the United States who purchased Guayaki’s yerba mate products labeled as containing “evaporated cane juice” or “organic evaporated cane juice” within the last four years.

The class action lawsuit alleges negligent misrepresentation, breach of quasi-contract, and violations of the Unfair Business Practices Act, the California False Advertising Act and the Consumers Legal Remedies Act.

Cowan is represented by Matthew R. Orr and Scott R. Hatch of Call & Jensen PC.

The Guayaki Yerba Mate Mislabeling Class Action Lawsuit is Kirstiema Cowan v. Guayaki Sustainable Rainforest Products Inc., Case No. 3:14-cv-01248, in the U.S. District Court for the Northern District of California.

If you purchased a product that contained “evaporated cane juice” on the food label, you may be eligible to participate in a free class action lawsuit investigation. Submit your information at the Evaporated Cane Juice Deceptive Marketing Class Action Lawsuit Investigation to find out if you qualify. It is absolutely free to participate and you could be able to recover compensation for your purchases.