Top Chinese snack company faces regulatory scrutiny over alleged misleading food labels

Chinese premium snack retailer Bestore, renowned for its wide range of snacks across categories like roasted nuts, dried fruits, and pastries, is now caught in a serious controversy over allegations of misleading ingredient labels. The claims, initially raised by key opinion consumers or KOCs on social media, have prompted the Market Supervision Department of Wuhan to launch an official investigation into the company's practices.

The controversy gained traction on Weibo, one of China’s largest social media platforms, after two well-known KOCs, 松哥打虎 (Song Ge Da Hu) and 赏金猎人灰烬 (Bounty Hunter Ash), posted videos scrutinising Bestore’s product labels. These individuals, widely followed for their consumer advocacy, alleged that some Bestore products were not as they appeared on the packaging, raising questions about the accuracy of the ingredient lists.

Their claims focused on two specific products:

• Hot and Sour Flour Noodles: According to the KOC’s, the product is advertised as containing sweet potato starch, but it does not actually include any flour.
• Lotus Root Flour Noodles: This product is marketed as pure lotus root flour but the KOC’s allege that a significant proportion of it is tapioca starch, a cheaper alternative.

According to Chinese state media, on Monday, November 4, the Market Supervision Department of Dongxihu District in Wuhan, Hubei province, released a statement confirming that an official investigation was launched on the brand. According to the department, concerns have been raised about the accuracy of Bestore’s advertised ingredient labeling, and initial tests appeared to support the claims made on social media.

The Wuhan Dongxihu Market Supervision Bureau has confirmed to the Chinese state media that the investigation will involve further testing, site visits to production facilities, and a full audit of Bestore’s manufacturing processes. Authorities have stated that they will take appropriate legal and regulatory action depending on the final results of their investigation.

This is not the first time Bestore has faced regulatory scrutiny over product quality. In 2017, Bestore and its holding subsidiary were penalised by the food supervision and administration department for quality issues related to products from a consignment production manufacturer. Although the company has since positioned itself as a leading player in the premium snack market, this latest controversy revives those concerns about its commitment to quality control and transparency.

Not just a domestic issue

Bestore’s potential labeling issues are not just a domestic concern. The snacking giant, launched in 2006, has been agressively expanding. It sells over 200 kinds of products in supermarkets of several countries including UK, Netherlands, Hungary, Italy, USA, Canada, Australia, New Zealand, Japan, Malaysia, Singapore and Thailand. Campaign Asia-Pacific cannot independently verify if the export quality of the snacks in question fall under the purview of alleged mislabelling as well. 

The brand claims to produce high quality and high value snacks for the health concious generation. It's a listed company on the Shanghai Stock Exchange. The stock is seeing fluctuations as a result of the controversy. On Monday, ahead of the revelation of the investigation, the company’s stock price saw an uptick but soon after the controversy spread, the share price dipped on Tuesday morning, reflecting investor concerns over the potential fallout in the coming weeks.

Bestore's response and fresh allegations

In a prompt action, Bestore issued an official statement via Weibo in response to the allegations. The company acknowledged the investigation but defended its products, saying that multiple batches of the snacks in question had passed internal inspections conducted by both Bestore and its consignment manufacturers earlier this year.

"After preliminary investigation, the relevant products have passed all indicators in multiple batches of inspections conducted this year," Bestore said. The company further assured consumers that it is fully cooperating with local authorities and that the investigation is ongoing.

However, Bestore failed to directly address the specific claims about discrepancies in the ingredients of its Hot and Sour Flour Noodles and Lotus Root Flour Noodles.

Bestore's statement 

Following Bestore’s response, one of the bloggers, posted a follow-up video alleging that the products in question, particularly those made before July 2024, contained undisclosed ingredients. The blogger also raised concerns that Bestore’s submitted test samples may not reflect earlier production batches, potentially skewing the results.

Another KOC shared independent test results that further support these claims and reiterated the need for greater transparency regarding the production and testing dates of Bestore’s products.

Posts from two Chinese bloggers

Social media analytics firm CARMA tells Campaign Asia-Pacific that frustration is mounting on Weibo, with netizens questioning why food safety scandals continue to plague China and why it falls on consumer advocates—not authorities—to expose unethical labeling practices.

CARMA also reports that Bestore's Weibo apology post has attracted over 2,500 comments, with many users asking why the company pulled the disputed products if there were no ingredient issues. There is growing support for consumer advocate Song Ge Da Hu and consumers are vowing to boycott Bestore’s offerings. Others pledged to keep following the story until the full truth is revealed, suggesting that the social media buzz is far from dying down.

Regulatory landscape: China’s food labeling laws

Under the Food Safety Law of the People's Republic of China, which was revised in 2015, companies are required to provide accurate, clear, and truthful information on food packaging. Any misrepresentation or omission of ingredients can result in severe penalties, including fines, product recalls, and even criminal liability for repeated or serious offenses.

Additionally, the National Standards for Prepackaged Food Labeling (GB 7718-2011) mandate that all ingredients must be disclosed in a way that allows consumers to make informed choices. Unlike many countries where food labelling laws and guidelines are open to interpretation, in China, the law leaves no room for ambiguity: any substitution of ingredients, (the cheaper alternatives in this case) must be clearly indicated on the label. Violations of these standards can trigger regulatory action, including fines that range from tens of thousands to millions of yuan, depending on the scale of the infraction.

In recent years, China has ramped up enforcement of these regulations amid growing consumer demand for transparency and quality in food products. The State Administration for Market Regulation, which oversees food safety compliance, has been at the forefront of cracking down on companies that misrepresent product contents, with several high-profile cases leading to legal and financial repercussions for offending brands.