New Zealand Sugar Company, trading as Chelsea Sugar, has been fined $149,500 for selling sugar products contaminated with lead.

The Auckland District Court's ruling follows a series of recalls in late 2021 after the discovery of lead-tainted sugar in products distributed nationwide.

The contamination stemmed from a September 2021 shipment of raw sugar from Australia aboard the cargo ship Rin Treasure, which had previously carried lead and zinc concentrates.

Despite prior warnings that the vessel was unfit for bulk sugar transport, New Zealand Sugar Company proceeded with the shipment after a post-cleaning certification.

However, ineffective cleaning and a broken pipe that leaked water into the sugar led to lead contamination.

New Zealand Food Safety deputy director general Vincent Arbuckle said the contamination affected not only individual consumers but also businesses that used the sugar in their products.

"These recalls had a significant impact on consumer access to certain sugar products, such as brown sugar. It also affected a large number of other businesses which had to recall products made with the contaminated sugar," he said.

The company pleaded guilty to two charges, including breaching its National Programme (NP) obligations and negligently endangering consumers.

The court found that while Chelsea Sugar received high lead contamination readings on 7 October 2021, it continued production instead of halting distribution.

The public recall was not issued until 4 November—six weeks after the sugar arrived in New Zealand.

Arbuckle stressed the importance of food safety compliance, stating, "Offending at this scale is rare, and the Court’s sentence today sends a strong message that it will not be tolerated."

While short-term exposure to lead in the contaminated sugar was not deemed a serious health threat, he emphasised that any risk to public health is unacceptable.

Residents concerned about food safety can contact New Zealand Food Safety at 0800 008 333 or use the agency’s online complaint tool.

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