Nestle Pulls Two Products in Horse Meat Scandal

It blamed the contamination on an outside supplier

   

NestleLogo Nestle Pulls Two Products in Horse Meat ScandalAfter tests discovered evidence of horse meat in some of its beef pasta meals, Nestlé (PINK:NSRGY) has yanked the packaged foods from European stores.

Testing located the presence of horse DNA in the meat products. Nestlé launched the tests after horse meat was discovered in a number of products sold in the United Kingdom last month, the Associated Press noted.

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Nestlé said that the beef in the products came from H.J. Schypke, an outside supplier, which denies knowingly using horse meat. In light of the findings, Nestlé is promising to use DNA testing on all raw meat purchased from external suppliers.

The company noted that its Gerber baby food, Lean Cuisine and Stouffer’s frozen food brands were not involved in the horse meat contamination.

Earlier this month Britain’s Food Standards Agency ordered food producers to test their products for horse meat after frozen lasagna from one company was found contain as much as 60% horse meat.

Last year, Nestlé agreed to address child labor law violations in its worldwide cocoa supply chain after a study from the Fair Labor Association highlighted the problem.

Shares of Nestlé  rose fractionally in over-the-counter trading on Tuesday.


Article printed from InvestorPlace Media, http://investorplace.com/2013/02/nestle-pulls-two-products-in-horse-meat-scandal/.

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