Part 2: Cheaper Origins Disguised (and Sold at a Premium)

by René van Hoorn

Ever wonder why organic products are generally about 10% more expensive than conventional ones? Is it coincidence, or just a price difference consumers accept as “normal”?

The organic debate could fill a book, but there’s a similar problem worth exploring:

Selling a product with a lower-grade origin while claiming it’s premium and thereby charging the PREMIUM price.

Why this happens

The reason is straightforward: greed. Some suppliers upstream in the chain see an opportunity to make money with little risk of getting caught.

These scams often happen when it’s difficult to distinguish the cheaper source from the premium one you can’t taste it, see it, or sometimes not even measure it. A very famous one is the Italian olive oil scandal, where more oil is sold than produced. Even now, olive oil fraud continues. And with olive oil you can measure it.

Real-world examples

Example 1: Palm-based MCT sold as coconut-based MCT

Medium Chain Triglycerides (MCTs) have two main fatty acids: C8 and C10 (usually 60:40). They’re used as stable fats, food-grade lubricants, and functional oils for KETO diets.

MCT oil can come from coconut oil or palm kernel oil (PKO). Twenty-five years ago, no one cared—MCT oil was sold as a mix. Fifteen years ago, however, awareness changed:

1. Coconut oil was recognized for its potential health benefits.
2. Palm oil became notorious for deforestation and unsustainable practices.

This created room on the market for a coconut-only MCT, that came in high demand but was also more expensive than PKO based MCT by ~15–20%.

Here’s the catch: you cannot tell the difference between PKO-MCT and coconut-MCT. They are identical in taste, appearance, and chemistry. Proof lies in the supply chain—audits, documentation, and trust.

A few years ago, a major KETO brand approached us for bulk coconut MCT at PKO pricing. Emails later revealed they knowingly bought PKO-MCT but labeled it as coconut-based. Consumers were deliberately misled.

Example 2: Conventional D3 sold as plant-based D3

Vitamin D3 comes from multiple sources:

• Sheep wool (lanolin) – traditional, animal-based
• Plant-based – Lichen, Algal, or Vitadee Green

The final product is chemically identical (cholecalciferol crystals), but the plant-based raw material cost is 10–20x higher than Sheep-based.

In 2023, a business friend was asked to make vegan D3 powder from the D3 crystal he would receive. The customer sent animal-based D3 and pushed to label the final powder product as vegan. He refused. The temptation to mislabel for huge profit was real and honestly? they probably found someone else.

In 2019, journalists investigated a lichen-based D3 product from China. Regulatory filings revealed missing extraction solvents, incorrect equipment, and impossible yields—casting doubt on whether the product was genuinely plant-based.

Example 3: Synthetic astaxanthin in human supplements

Natural astaxanthin is an esterified, highly bioavailable antioxidant. Three sources exist:

1. Synthetic (non-esterified)
2. Fungal (non-esterified, feed-only)
3. Algal (esterified, human food grade & approved in Europe)

We discovered a European supplement manufacturer using 10% synthetic astaxanthin in a human product. Problems:

1. Illegal in Europe for human consumption
2. Ineffective – 20x lower bioavailability than natural
3. Misleading – gives a false sense of value

The only good news: esterified algal astaxanthin can be distinguished in testing.

Risks for consumers and brands

Consumers: If you want palm-free, plant-based, or natural, you deserve to get what you pay for. Fraud isn’t just unethical, it’s cheating.

Brands: Without audits and due diligence, your reputation can be destroyed. Mislabeling—even unknowingly, can lead to legal issues, lost customers, and irreparable damage.

How to protect yourself

Consumers: Look for QA certifications, independent audits, and transparent traceability.

Brands:

1. Audit production plants
2. Review flow charts and equipment
3. Verify mass balances
4. Consider third-party verification—but nothing beats visiting the site and understanding the culture firsthand

Want assurance about your supply chain? Lus Health provides natural and plant-based ingredients, including:

• Natural astaxanthin
• Palm-free MCT oil
• Plant-based D3

Contact us: info@lushealth.com

Do you have examples of cheaper origins that are sold at a Premium? Contact your National food safety legislator