Guayaki Settles Yerba Mate ‘Cane Juice’ Labeling Class Action Lawsuit

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According to court documents filed this week in California federal court, yerba mate maker Guayaki Sustainable Rainforest Products Inc. has agreed to a class action settlement over allegations it misled consumers by listing “organic evaporated cane juice” as an ingredient on its beverage labels.

Yerba mate is a South American beverage derived from a type of shrub that is related to the holly family. According to Guayaki’s website, “Yerba Mate has the ‘strength of coffee, the health benefits of tea, and the euphoria of chocolate’ all in one beverage.” The leaves of the mate tree reportedly contain significant vitamins, minerals, amino acids and antioxidants.

The yerba mate class action lawsuit was filed California state court in January by plaintiff Kirstiema Cowan, who alleged Guayaki conceals the sugar content in its products by calling it “organic evaporated cane juice” in attempt to appeal to health-conscious consumers. She alleges the use of the cane juice label can cause consumers to be confused about the sugar content of the beverage. She further claims that the yerba mate label violates consumer protection laws and ignores a warning by the U.S. Food and Drug Administration (FDA) telling companies not to use “evaporated cane juice” on product labels because it can lead consumers to believe the ingredient is actually juice.

The Guayaki yerba mate class action lawsuit was removed to California federal court in March.

Cowan alleges in the cane juice class action lawsuit that she seeks out products with low sugar content due to her family history of diabetes. She says she purchased several varieties of the Guayaki yerba mate products, including Pure Heart Raspberry, Pure Mind Pomegranate, and Pure Empower Mint, between May and August 2013. Cowan claims she relied on the ingredients listed on the label and chose Guayaki’s products over cheaper alternatives because she believed the yerba mate beverages were healthier for her.

The parties reportedly reached a class action settlement over the cane juice labels earlier this summer. Yesterday, U.S. District Judge Samuel Conti approved a joint motion to dismiss the yerba mate labeling class action lawsuit due to the pending deal.

Details about the yerba mate class action settlement were not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Cowan is represented by L. Paul Mankin IV of the Law Offices of L. Paul Mankin IV.

The Guayaki Yerba Mate Evaporated Cane Juice Class Action Lawsuit is 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.