Tesco UK Hit With Further Product Withdrawal
Published on Mar 13 2013 11:36 AM in Retail
The withdrawal of a further Tesco UK product from the shelves yesterday, Simply Roast Meatloaf, due to the presence of horse meat, is a "body blow that perpetuates the perception in the market that Tesco is more of a victim than not of 'horse gate'," according to a statement by Shore Capital Stockbrokers.
"That Tesco has moved openly and promptly reflects well on management," it added. However, "this withdrawal is also unlikely to do anything to help frozen prepared meat consumption in Britain, which has been reported by Symphony IRI to be down as much as 13% in the early weeks of 2013."
The withdrawal announcement was made yesterday by the retailer's Technical Director, Tim Smith. It is understood that the product originated in Northern Ireland.
Shore Capital added: "Tesco, as market leader ,[…] is perhaps gaining the highest profile from an unedifying series of events. Steps have and continue to be taken to try and reduce the scope for further such news flow but last night’s announcement represents a modicum of disappointment to our minds."