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:
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:
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:
We discovered a European supplement manufacturer using 10% synthetic astaxanthin in a human product. Problems:
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:
Want assurance about your supply chain? Lus Health provides natural and plant-based ingredients, including:
Contact us: info@lushealth.com
Do you have examples of cheaper origins that are sold at a Premium? Contact your National food safety legislator
Overview: What every consumer and health brand needs to know
When I started Lus Health nearly seven years ago, my goal was simple: contribute to a better future for people and the planet. Above all, I wanted to be honest and transparent about what we offer and how we make it. Even then, I knew not everyone in the industry shared that mindset.
As a supplement & ingredient supplier, we see things go wrong far too often, and in the last few years, the problem seems to be growing. Over the past few years we’ve identified two types of supplement fraud in the food supplement industry that we feel everyone should be aware of.
Why it matters
Consumers: You want to trust that what you put in your body is safe, effective, and matches the label. Imagine paying a premium for a product that:
Brands: Launching a mislabelled or illegal product can destroy your reputation, lose customers, and even get you in legal trouble.
The types of fraud we see
Over the years, we’ve carefully built an ingredient portfolio with in-depth knowledge of supply chains. The fraud we’ve encountered is tied to our type of products and ingredients—but it likely represents just the tip of the iceberg.
The two main types of fraud we’ll focus on in this series:
Why food supplement fraud happens
Sure, money drives these decisions—but it’s rarely just greed. Often it’s rationalized as:
As humans, we also tend to believe what benefits us. It reminds me of the 90s show The X-Files, where Mulder wants to believe in aliens. Similarly, buyers convince themselves all products can be organic, low-cost, and always available—because admitting supply chains are complex is too hard.
Fraud has been rising recently because the markets Lus Health serves are expanding. New players—both buyers and suppliers—enter the field, each wanting a slice of the pie. Some are willing to cut corners, bend rules, or break the law.
How to avoid fraudulent supplements
The solution isn’t simple. You can’t just “trust the supply chain.” The best protection is vigilance:
For brands, this means building your own quality assurance system. It’s not easy—but it’s worth it.
Lus Health can help
We work with health brands to ensure quality, transparency, and sustainability. That means:
If you want to be confident your products meet the ethical and quality standards your customers expect, reach out to us or learn more about Lus Health here
Contact: info@lushealth.com
Would you like to report Fraud in the Food Supplement Industry? contact your National food safety legislator
✅ Next: Part 1 – Algal Omega-3: False Label Claims Used to Cut Costs (available per Oct 22th)
What is MCT Oil?
First things first - what exactly is MCT oil? MCT stands for medium-chain triglycerides, which are a type of fatty acid that can be found in coconut oil, palm kernel oil, and other natural sources. Lus Health Ingredients only sells MCTs that are 100% Palm-free (coconut based). Unlike long-chain triglycerides (LCTs), which are more common in our diets, MCTs are metabolized differently by the body. They can enter our blood directly, are quickly converted by our livers into ketones. As a result this can be used as a source of energy instead of glucose. In the market you will currently find two types of MCT oil. One type has 60% of caprylic acid (C8) and 40% of capric acid (C10), and another type is almost pure caprylic acid (The Lus Health product offers minimally 99%). Research shows that C8 is more ketogenic than C10, so you can imagine C8 is loved by the Keto Crowd!
MCT oil is a concentrated form of the goodness coconut oil is offering. It's a clear, tasteless liquid that can be added to smoothies, coffee, or other foods and drinks.
So why is MCT oil so popular among those following a keto diet? Here are just a few of the benefits it can offer:
But there is more to MCT oil than you may think, read further below!
While MCT oil is certainly popular among those following a keto diet, its benefits extend far beyond just weight loss and energy. Here are a few additional reasons to consider adding MCT oil to your supplement regimen:
So there you have it, MCT oil is a versatile product that can be used for different health areas. Lus Health Ingredients specializes in PalmFreeMCT™ oil, which we sell in bulk, in private label and in micro encapsulated format. If you want to find out more about MCT oil, get some studies, want a sample or a quote of our PalmfreeMCT™ oil, visit the webpage here or contact (L)us on info@lushealth.com
Several studies show the positive impacts that medium-chain triglycerides (MCT) can have on satiety and food intake with weight loss as a result. In the earlier days, when MCT was not as popular as is Today, these benefits were connected to the consumption of coconut oil. In what way do these ingredients have similar effects?
The aim of the study from Kinsella, R., Maher, T. and Clegg, M. E. (2017) was to examine the effect of MCT oil compared to coconut oil & control oil on food intake and satiety.
This randomised, single-blind, repeated measures study fed 28 healthy female and male participants (without restrained eating habits). They received three different isocaloric test breakfasts on three non-consecutive days with at least one day between tests. On the day prior to all three test days, participants avoided consumption of caffeine, alcohol and nicotine. Since this could increase their appetite the next day. In addition, unusual strenuous physical activity could not been done due to the same reason. The participants also had to fast from 9pm the night before (10-12 hours before testing).
Following this overnight fast, participants consumed a test breakfast smoothie containing 205 kcal of either (i) MCT oil (ii) coconut oil or (iii) vegetable oil (control). The lipid profile of these fats was as follows:
First, baseline measurements were taken. After that, participants had fifteen minutes to consume the test breakfast. 180 minutes after consumption of the breakfast, the participants recorded their ratings of appetite on visual analogue scales. They could also eat a variety of personally preselected sandwiches (as many as they wanted). Each sandwich type had the same energy content.
The energy and macronutrient intake from the different participants was measured with one-hundred-millimetre continuous line visual analogue scales (VAS). Participants completed the VAS before and after consumption of the test breakfast. This was repeated every 30 minutes for the following 3 hours until they received the preselected sandwiches. The final VAS was completed after this lunch.
In conclusion, the results show a significant difference in energy and macronutrient intake at the "sandwich meal" between the three oils. MCT oil had the biggest impact on reduced food intake compared to the coconut and control oil. Moreover, differences in food intake throughout the day were found for energy and fat. The control oil even increased food intake compared to the MCT and coconut. The MCT oil, on the opposite, increased fullness over the three hours after breakfast compared to the control and coconut oils. See the results of this study in the graphic below.
The results of this study confirm that there is a significant difference between MCT and coconut oil in such a way that coconut oil cannot be promoted as having the same effects as MCT oil on food intake and satiety. The MCT oil that was used during this study did not consist purely of Capric (C10) or Caprylic Acid (C8). Further research would be interesting with MCT oil that consists of pure Caprylic Acid or a combination of both. In addition, to repeat this research with obese or overweight individuals.
Interested in more research around MCT oil? Read more about our PalmFreeMCT™ Oil or get in touch with us! Does a product which helps with improved satiety and reduced food intake sound like music to your ears? Our Ketosene® Green may be exactly what you are looking for!
Proudly launching Veganergy product line, a label claim friendly MCT powder that fits in many application that desire MCT without the bad stuff! Veganergy is a powder with a 70% MCT oil load and only acacia gum as the other ingredient. It is produced with PalmFree MCT's and comes standardly in two versions (Pure C8 & C8C10 6040). The product is made in Europe, in an Infant formula grade factory, using the latest technology to create high fat powder with Free Flowing capabilities. With our strict control limits on microbiology & contaminants Veganergy makes a safe-to-use ingredient for all your applications.
MCT's are best known as energy givers. These triglycerides made from coconut fatty acids are rapidly converted in our bodies to ketones. Ketones form glucose-alternative that give our body & brain easy access to energy without the negatives that come with carbohydrates. Just 15g of our product will get the body in nutritional ketosis within an hour, lasting another 3 hours. Burn fat the smart way !
Our powder is fully vegan, contains no carbs but only fat & (acacia) fibers that have no impact on the glycemic index. Most dairy based powders we know are made with maltodextrin (and even glucose syrup &silicon dioxide) and create, what we believe, is an unwanted glycemic response.
In 2019, a substantial amount of new papers came out, we counted over 50 with a relatively new research area getting lots of attention!
Brain was the main research area of 2019
When we say brain we mean three different areas: cognition, depression and stroke (or neuroprotection). Researchers showed that mood could improve within 8 weeks, that memory may improve and fully reviewed the current science on neuroprotection.
A short overview:
Roughly 20 scientific papers are available free in PDF format, which you can find below
In February 2019, Registered Keto Dietitian Lotte from Myndfuel and myself met, in the new-fashioned way, on Linkedin. Where I used to believe that connecting on that digital platform was something AFTER MEETING OFFLINE, this belief has slowly changed over the last years. Now, I see it as a great way to meet like-minded people from around the world, and across all sectors of business.
Shortly after our Linkedin encounter, we met offline and almost immediately started brainstorming about what we could do together. When we, as Lus Health Ingredients, decided to sponsor the first European Keto-Live conference in Switzerland mid-June 2019, one extra ticket for Lotte was quickly arranged. Today, a few weeks before combining our forces and attending the keto conference, we write our first blog on MCT oil and its health benefits since this is the product we will bring along.
This article covers what MCT oil is, how your body digests it and how it plays a role in improving your health on a ketogenic lifestyle from a Dietitian’s perspective.
MCT oil consists of two main fatty acids, namely Caprylic (C8) and Capric (C10). The product is basically a concentrated version of Coconut oil OR Palm Kernel oil. The final product of these inputs, MCT oil, is similar in terms of the health benefits. For (L)us, however, it is clear that Coconut is the only way to go and the better more sustainable alternative to Palm based on the origin of their ingredients in general.
There are multiple versions of MCT oil, with different ratios of C8 and C10, commercially available. The most common ratio is 60:40 (C8:C10), there is 70:30 and a Pure C8. If needed any ratio is possible, but this is what is commonly offered in the market. The individual fatty acids do have different effects on our body, more about that at a later stage in another article.
Long chain fatty acids, LCTs, (think of olive oil, fish oil, sunflower, etc) and MCTs follow similar routes in one of the first stages of our digestive tract. It starts with lipase action that disconnect the Sn1,3 fatty acids from the glycerol backbone, ending up with two free fatty acids and a 2-acylglycerol. This already starts in the stomach but takes mostly place in the gut. The body will then release bile salts to effectively emulsify the free fatty acids and 2-acylglycerol, ready for absorption. Migrating through the microvilli, the components are now circulating in the enterocyte. This is where things start to get interesting.
LC fatty acids are now re-esterified into the form of triglycerides and will be synthesized into lipoproteins called Chylomicrons. These will then be deposited into the Lymph system. A long route towards getting to the liver.
MC fatty acids, however, are not re-esterified. They maintain their form as free fatty acids. Because of their small size, they can directly enter the bloodstream and your liver can quickly break these down into an instant source of energy, called ketones. See it as LCTs taking a detour and MCT taking the highway.
Among advocates of the keto diet, it is now a well-known fact that MCTs play an important role. Especially when it comes to a goal as weight loss, the use of MCTs shows great results. Compared to LCT that naturally occur in fatty products such as grass-fed butter and olive oil, MCT leads to a greater energy expenditure. As a result, MCT consumption may lead to increased fat loss and improved body weight (1). In addition, it has been shown that MCT oil increases the release of the 2 hormones that promote the feeling of feeling satisfied, namely peptide YY and leptin (2). Even compared to regular coconut oil, taking 2 tablespoons of MCT oil for breakfast leads to increased fullness (3). This discovery has probably also to do with a lower rise of triglycerides and glucose when consuming MCTs instead of coconut oil. Lastly, your body can directly convert MCTs into energy as ketones due to the shorter chains, preventing fat storage. These ketones are especially a great instant energy fuel for your brain. In summary, all the above-mentioned points show that MCT oil has great beneficial properties for people who are overweight.
With these promising health benefits, it is important to implement the consumption of MCT oil into your diet the right way. MCTs are successfully converted into energy, given the conditions that daily carb-intake is low (<50 grams) and the oil being consumed separately from a meal. The key of implementing MCT in your diet is starting with a small amount, since your body is not used to digesting it at first. Start with adding 1 teaspoon a day to your coffee, 2 teaspoons after 3 days and 1 tablespoon after one week and slowly build up further till 2 tablespoons. When you are trying to lose weight, it is inevitable to consume MCT oil as a part of your total daily fat intake and not as an addition to it. The bottom line of losing weight is to burn more kilocalories than you take in.
Since the popularity of a keto lifestyle has risen tremendously over the last few years, there are also more MCT products available and arriving on the market. For both individuals as well as for health professionals, it may be a challenge to find out which MCT product(s) meet(s) the high-quality standards. To make it easier for you, the characteristics of a high-quality MCT oil are: non-GMO, PalmFree and so sustainable derived MCT from 100% coconuts. So do keep this in mind, since there are also a lot of misleading products on the market such as MCT made from unsustainable palm kernel oil or products that don’t show the ratio of type of MCT.
The bottom line is that MCT oil can be very beneficial to your health for different reasons, provided that you invest in a product that meets the high-quality standards.
Will we see you there?
Not many people know how effective palms are in converting CO2 to vegetation and oil. A palm plantation delivers 5000-9000 kg of oil per hectare. Eat that sunflower! (1000 kg). The problem with the palm plantations is that they are so profitable in their use (over the entire supply chain) that the demand for more plantations is growing. More plantations in a geographical region that has little open land, means cutting down rainforest, a fragile ecosystem providing huge diversity. Profit over Planet.
The oily fruit actually delivers two products. One is Palm oil, which is made from the fleshy part of the fruit. It finds is use in… well nearly every processed food product on the planet. Just ask the big multinational food players
The other product is Palm Kernel Oil. The kernel is around 1/3 of the total fruit, is dried, pressed and (hexane) extracted to give palm kernel oil. The palm kernel oil is very different from palm oil, as it contains a high amount of lauric acid, a favorite fatty acid in the production of soaps. The remaining non-lauric acid fraction contains medium chain triglycerides (MCT) and is popular in the Ketogenic diet.
The alternative is clear. Coconut oil is richer in MCT’s than Palm Kernel. Coconut plantation are more sustainable. The plantations can actively produce coconuts for more than 50 years and are actually local biodiversity areas, with many other bushes and plant growing on the same lot. If you want to reap the benefits of energy giving MCT’s, choose palm free. Choose Coconut based oil, every time.
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