Authorities in Tianjin are investigating a network of 50 underground factories that have produced counterfeit sauces and food seasonings labeled as well-known brands, including Nestle and Knorr, for over a decade.
The illegal operations were run in facilities disguised as rural homes in the town of Duliu. They were using ingredients unfit for human consumption, such as industrial salt and recycled spices, to make widely used seasonings, including soy sauce. Seven suspects have been detained so far in connection with the rogue manufacturing ring.
The fact that these small food processors were able to churn out fake products worth hundreds of million of yuan undetected for years shows what little local authorities have done to weed out the problem of poor-quality food, said Liu Peng, an associate professor at Renmin University's School of Public Administration and Policy in Beijing.
The counterfeiters made soy sauce with water, food coloring and industrial-grade salt, which is banned because it contains cancer-causing agents and heavy metals harmful to the liver and kidneys.
They also repackaged spices such as Sichuan peppercorns left over from factories processing nuts into powdered spice mixes.
International brands including Nestle and products from popular local food seasoning company Zhumadian Multi-flavored Spice Group Co. were among those affected by the scandal. Counterfeiters also targeted items from Hong Kong-based Lee Lum Kee International Holdings Ltd., which makes a wide selection of Asian sauces.
The highly organized gang had sold their substandard goods to wholesalers and retailers in at least nine cities and provinces, including Beijing, Xinjiang and Fujian.
Chinese consumers have been hit by a string of food safety scares linked to counterfeit goods and contaminated products over the past decade. Last year, police in Shanghai busted a criminal ring that was selling low-quality infant formula disguised as products from several reputable companies, including American Abbott and domestic brand Beingmate.
The scandal in Tianjin is particularly alarming because the northern port city has been âleading the charge nationwideâ since 2014 to streamline law enforcement agencies to crack down on such violations, said Liu from Renmin University.
The city's party secretary, Li Hongzhong, vowed to punish counterfeiters with an âiron fistâ and to have âzero toleranceâ of those who violate food safety rules.
While an official probe is still underway, investigators should particularly look into whether local regulators colluded with rogue manufacturers, allowing them to operate undetected for so long, said Liu.
âThat link, if established, would be a bigger cause for concern,â he said.
The brands that have been affected by the scandal should also re-examine their own choices, especially if they had got wind of the illicit operations earlier but chose not to come forward with it, fearing bad publicity, Liu said.
Authorities in Tianjin are investigating a network of 50 underground factories that have produced counterfeit sauces and food seasonings labeled as well-known brands, including Nestle and Knorr, for over a decade.
