Tesco shares were accounted among the biggest fallers on the FTSE 100 today after reports emerged that traces of horse DNA were found in a range of their beef products.

The samples were discovered by Irish food safety inspectors at two plants in Ireland, with horse meat accounting for 29% of the total meat in Tesco 'Everyday Value' range of beef burgers. The UK and Irish press and social media networks are still abuzz with the story this afternoon.


Tim Smith, Tesco's technical director and a former head of the Food Standards Agency, announced a hasty apology late last night:

"We immediately withdrew from sale all products from the supplier in question. We are working with the authorities in Ireland and the UK and with the supplier concerned, to urgently understand how this has happened and how to ensure it does not happen again. The safety and quality of our food is of the highest importance to Tesco. We will not tolerate any compromise in the quality of the food we sell.
"The presence of illegal meat in our products is extremely serious. Our customers have the right to expect that food they buy is produced to the highest quality."

The scandal has hit the retailer hard this morning, and as of 10.30am company shares were down 1.1% -  removing around £300m off Tesco's market value.


The backlash in sales and footfall could yet be realised, despite the chain last week reporting its highest sales growth in three years over the Christmas period. The group disappointed investors in October by posting its first fall in profits since 1994, but its festive trading had seemed to get Tesco back on track. The full extent of customer support, celebrity endorsement and financial trading could yet be irrevocably damaged by this revelation of illegal equine ingredient.