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)
As the coronavirus spreads, questions arise on how to reduce your risks of exposure and how to prepare yourself. Effectively fighting off viruses can only be done when your immune system is strong. So especially during this time of viral crisis, it is more important than ever to make the right choices. Strangely enough people seem to be hoarding non-essential food products like crisps, canned goods and bread these days. This, although we all know that eating a healthy diverse diet rich in wholesome foods like fruits & vegetables, supports our body. Some specific nutrients play a vital role in boosting your immune system and in this article, we would like to offer you two ideas as food for thought.
Vitamin D3
Deficiency of vitamin D is actually common in the western world. According to researchers as much as 40% of the population is deficient (<50 nmol/l) with specific groups like elderly in care homes reaching as high as 90%1. Deficiency is associated with increased susceptibility to infections and impacts immune response. In 2008, Japanese researchers conducted a double-blind placebo-controlled trial to investigate the effect of vitamin D3 supplementation on the development of seasonal influenza A in school children2. These children (aged 8-12) where split into two group with one group getting a placebo and the other 1200 IU Vitamin D3. Over the course of the trial period (Dec 1st – March 31st) 49 children got influenza. Only 18 were in the Vitamin D3 supplementation group whereas a staggering 31 in the non-supplemented group, a highly significant difference of 42%.
Astaxanthin
Astaxanthin, a potent antioxidant, plays a major role in balancing the body’s immune response and inducing oxidative stress. Dietary astaxanthin is reported to stimulate immune cells and increases the number of total T and B cells in the blood. A 2010 randomized double-blind, placebo-controlled study in Korea assessed the impact of astaxanthin on the immune response3. Young female college students (20.2 – 22.8 years old) all were given one soft gel capsule every morning containing either 0, 2 or 8mg Astaxanthin. After 4 weeks of supplementation, plasma astaxanthin increased to maximal concentrations in a dose-dependent manner as anticipated. The groups taking astaxanthin showed a significant increase in immune cell response as measured by the amount of T and C cells upon stimulation with a mitogen. Additionally, the astaxanthin groups also decreased a DNA damage biomarker and inflammation.
Other important steps to strengthen your immune system
Besides eating healthy and paying attention to specific nutrients like vitamin D3 and astaxanthin, there are more things you can do to strengthen your immune system. Reducing stress, sleeping enough, exercising regularly, and staying away from toxins, all play a role. By taking these steps, we can support our immune system and stimulate our friends and family to do the same! At Lus Health Ingredients we believe that taking care of your body with healthy plant-based ingredients can help build a strong immune system. We offer soft gels with Vegan D3, Astaxanthin and Algal Omega 3 to keep supporting your body.
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