Nestle SA (ETR:NESR) (FRA:NESR) is the latest company to fall prey to the horse meat scandal that’s sweeping across Europe. The scandal has embroiled countless companies, from fast food giant Burger King Worldwide Inc. (NYSE:BKW) to numerous meat suppliers.
The Wall Street Journal reports today that Nestle has recalled some beef pasta meals that were sold under the Buitoni brand name after horse DNA was found in the meat inside those meals. The recall affects products sold in France, Spain and Italy, and Nestle said it found more than 1 percent horse DNA in two of its products.
Just last week, Nestle SA (ETR:NESR) (FRA:NESR) claimed that its products were not affected by the horse meat scandal. A spokesperson for the company said the recall wouldn’t have a serious financial impact on Nestle because the recalled items were refrigerated pasta products without a long shelf life. He said there were small amounts of inventory of the product.
The horse meat scandal has sparked numerous product recalls in Europe in recent weeks. Consumer Intelligence, a research company, found that about a fifth of adults in Europe indicated that they weren’t buying as much meat as normal because of the horse meat issue. Traces of horse meat have been found in beef products throughout the U.K. and other parts of Europe.
Nestle SA (ETR:NESR) (FRA:NESR) has also said it would suspend deliveries of beef-containing products from H.J. Schypke, which is one of its suppliers’ subcontractors. The subcontractor has also suspended its contracts with the company.
Nestle and its subcontractors say they are collaborating with authorities as the horse meat investigation continues.
