The encyclopedia · Product & Design · Legal decision · 2013
Taiwan alcohol affiliate sold fake 'distilled' spirits — 11 of 12 products mislabeled
Ta Lien Alcohol, an affiliate of the Da Tong cooking oil empire, was caught in 2013 with 11 of 12 alcohol products mislabeled. Fined NT$5.5M and suspended.
Ta Lien Alcohol Company · Tatung Changchi Foodstuff Factory · 2013-10-28
What happened
Ta Lien Alcohol Company (大聯製酒工業公司) was an affiliate of Tatung Changchi Foodstuff Factory Co. (大統長基食品), one of Taiwan's largest cooking oil manufacturers. On 28 October 2013, the Changhua County Department of Finance announced that 11 out of 12 alcohol products tested from Ta Lien had contents that did not match their labels. Products labeled as distilled alcohol were actually mixtures of edible alcohol, glutinous rice-wine flavoring, and juices.
The company produced approximately 400,000 liters of rice cooking alcohol annually, of which 60,000 liters were sold to the Taiwanese military. The rest was sold to retail stores and supermarkets in 600-cubic-centimeter packages. The mislabeling covered a range of products including wine and rice wine — only one product, a ginseng alcohol, was found to comply with labeling standards.
Ta Lien was fined NT$5.5 million (approximately US$170,000). The Department of Finance also requested that the Ministry of Finance suspend the company from manufacturing for six months to one year. The scandal broke just weeks before the larger Da Tong fake olive oil scandal at the parent company, which led to the CEO being prosecuted in prison and the company being shut down. The Ta Lien case was the first crack in a widening food safety crisis that would engulf the Chang Chi group.
Why it happened
- The company labeled products as 'distilled alcohol' when they were actually mixtures of edible alcohol, flavorings, and juices — a deliberate misrepresentation to command higher prices
- The fraud was discovered because the Changhua County government was conducting a broader sweep of alcohol products; Ta Lien was not the target of a specific investigation
- The company sold 60,000 liters of mislabeled rice alcohol to the Taiwanese military, suggesting the fraud extended to government supply chains
- Ta Lien was an affiliate of the already-troubled Chang Chi group, which was facing scrutiny over its cooking oil — the alcohol fraud fit a pattern of corner-cutting
The lesson
When a company's affiliate is already cutting corners on cooking oil, its alcohol products are worth checking too. Ta Lien's fraud was found in a routine sweep — 11 of 12 products were fake.
Sources
- The China Post — Changchi affiliate busted for putting false labels on 11 alcohol products (29 Oct 2013, via Wayback Machine)
- Wikipedia — Food safety incidents in Taiwan / Ta Lien Alcohol Company
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