No, it is not spoiled or rancid. Our Liposomal Vitamin C naturally has a very sour and fatty taste due to the lecithin present, and does not have a pleasant taste because of that. Other brands of Liposomal Vitamin C use flavorings and preservatives to help tone that intense flavor down due to the lecithin, and we do not do this to keep our product as pure and therapeutic as possible. You can try mixing it with water, or really any food or beverage you want to help with the flavor, as long as the food or beverage is not above 30 degrees C. Spagyri-Somal Vitamin C does have a slightly better taste since we use a spagyric tincture of lemon peel in it, giving it a citrus flavor, but it still has a strong taste from the lecithin.