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Greencore shares plunge after ASDA pulls

Friday, February 15 10:32:05

Shares in Irish foods group, Greencore plunged by nearly 15pc this morning after UK supermarket chain, ASDA, pulled some of its products from the shelves after horsemeat was found in Greencore's bolognese sauce.

By 10:30 this morning Greencores shares on London's FTSE were down 15.04p to Stg0.872.

In a statement this morning, Greencore confirmed that it supplied the Chosen By You 350g Beef Bolognese Sauce that Asda has withdrawn following the detection of traces of equine DNA in a screening test.

"In addition to the 350g Beef Bolognese Sauce, Asda has withdrawn three other Greencore products, none of which contain equine DNA, as a precautionary measure (600g Beef Broth Soup, 500g Meat Feast Pasta Sauce, and 400g Chilli Con Carne Soup). The revenue of the Beef Bolognese Sauce represented c. £0.3 million of Greencore's £1.16bn turnover in its last financial year. The annualised revenue of all products withdrawn represents less than £1.0 million," the irish firm said.

"The company is currently awaiting the results of further quantitative tests on the 350g Beef Bolognaise Sauce that will validate the presence and the extent of the equine DNA. The sauce contained meat that was supplied to Greencore under contract by the ABP Food Group's Nenagh plant in County Tipperary, Ireland, an approved and regularly audited supplier. The company is working closely with them to determine the full facts as we await the results of the further tests."