Auckland liquor importer Ace Health Limited has been fined $151,200 after it attempted to sell thousands of bottles with altered labels.
File pic Photo: 123RF
The company along with managers Bosheng Wang and Zhimin You pleaded guilty in the Auckland District Court to seven charges under the Food Act for supplying spirits that had their lot codes tampered with.
The company was fined $108,000 and each manager was fined $21,600.
Lot codes are used to verify a product is genuine and can be traced if they need to be recalled. Unique codes are etched into the glass or printed on the label, and aim to provide security for customers.
By modifying labels, the importer was able to buy compromised stock at a discount.
"The importer stood to gain a significant profit by purchasing large quantities of illegal liquor at a discounted price," New Zealand Food Safety deputy-director general Vincent Arbuckle said.
The non-compliant bottles were valued at about $278,000 wholesale, but their estimated retail value was $330,000.
"Label integrity matters and when businesses try to get around the rules, they are at best deceiving consumers, and at worst putting them at risk.
Arbuckle estimated the scheme would have saved Ace Health around 7 percent on costs.
"In this case, our testing showed that the product was genuine, but that doesn't excuse the offending," he said. "Consumers deserve to know that the product they are consuming is safe and suitable and the lot numbers help provide that assurance."
The charges came about after New Zealand Food Safety investigated the importer in 2019, finding hundreds of bottles without lot codes.
This isn't the first time Ace Health has come to the attention of authorities. The company received a warning in 2017 after purchasing illegally marked liquor, but continued to work with non-compliant suppliers.