New Hope 360 Blog

Tesco has a horsemeat problem


Make way for lean finely textured ... er ... horse.

Move over pink slime—a new meat scandal is in the making. The world’s third-largest retailer, U.K.-based Tesco, has been on the rebound in recent years trying to recover consumer faith in its private-label brand. But the efforts hit a s(nag) this week when the Food Safety Authority of Ireland found horse DNA in 37 percent of three products in the company’s Everyday Value beef line, a transparency gaffe that has turned into a PR nightmare for Tesco and others.

The Daily Mail reported that three other retailers—Asda, Co-op and Sainsbury’s—withdrew their burger lines as precautionary measures over similar concerns, and Burger King revealed that it employs the same beef supplier. Ireland-based Silvercrest Foods, a division of ABP Food Group, is the culprit that sold the tainted meats, and has since been ditched by Tesco.

All a matter of trust

“[The discovery] is damaging because people don’t want to think they’re eating horse and it brings into question the whole trust issue,” Conlumino research director Matt Piner told Bloomberg.“Retail trust is harder to build than throw away.”

Bingo. It’s not so much that eating horse is such a profound ethical misstep (it is, but hey, cows are people too, man). I’m sure there’s a time and a place for eating horsemeat—although, outside of desperately fighting off starvation on the frigid steppe after your wagon breaks down, I’m not sure when that is exactly. No, the rub here is that consumers just can’t trust cheap meat anymore.

The issue with pink slime wasn’t that it was unsafe or unsanitary. It was just gross, and nobody knew about it. It was an issue of trust—and if you can’t be trusted, you can’t be in business anymore. To wit, it wasn’t just horsemeat in Tesco’s beef—the Irish agency found that 85 percent of the products contained pig DNA too. People eat pig. But, at least in theory, they don’t eat pig when they order beef.

To be honest, the most surprising thing about this story is that Tesco’s stock price dropped only 1.7 percent in the immediate wake of the scandal, considering how the pink slime kerfuffle effectively shuttered Beef Products, Inc. To that end, this may be the last we ever hear of Silvercrest.

In a statement, Tesco promised to “find out exactly what happened and, when we do, we’ll come back and tell you” and that they would “work harder than ever with all our suppliers to make sure this never happens again.”

Perhaps in the United States, now that the Food Safety Modernization Act has kicked into gear, qualified suppliers will be more visible (same with unqualified suppliers) and such transparency issues will become a thing of the past. Perhaps.

Until then, make transparency a priority. The priority. It’s no longer just a selling point—it’s the cost of doing business.

Discuss this Blog Entry 6

Chef Art (not verified)
on Jan 18, 2013

another great reason to get your protein from a different source other than meat

Marc David (not verified)
on Jan 25, 2013

There's really no excuse for this type of activity with the current testing. It's a good way to go on the cheap. The problem is obvious (money) but the solution is not. Will the FDA drop a few fines if any? Somebody over there knew what was going on, they got paid and now they need to spend some time thinking about that in a nice small cell. If the U.K. were China, the CEO would already be dead.

Anonymous (not verified)
on Jan 25, 2013

This show total lack of concern or interest on behalf of these retailers and restaurant chains. They could very easily monitor and teast thesesuppliers and product but that would comefrom their profits, they have a "lets see if we get caught" philosophy because the prifits gained generally outweigh the loss of being caught. Trust me someone in the Tesco/Burger King supply chain knew about this and profited from it!

Anonymous (not verified)
on Mar 2, 2013

This is what they need to get themselves back on track.. (not verified)
on May 10, 2013

Horsemeat is everywhere theese days, it's really frustating

on Jul 21, 2014

It is quite alarming to find that such huge brands are doing fraud in their product. We have to be very cautious buying meet from the market now. TESCO had been in the receiving end for quite a while now and I am sure the company is declining.
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