Food contamination

Written evidence submitted by Greencore Group PLC

Further to an invitation to our Chief Executive, Patrick Coveney, to provide oral evidence to the Environment, Food and Rural Affairs Committee on the matter of contamination of beef products and to subsequent dialogue with Dr. Anna Dickson, please accept the following as Greencore’s formal response.

Attached is a detailed memorandum that lays out how Greencore was affected by the horsemeat issue, including all the significant testing that it carried out itself and that was carried out by its customers on its products. As the memorandum explains, we identified absolutely no contamination in our supply chain whatsoever and all test results were clear. At one stage it appeared that one of our products – a Beef Bolognese sauce that we supply to Asda – had tested positive for traces of equine DNA. However, extensive subsequent tests undertaken by both Greencore and the brand owner showed that the original result was in fact erroneous.

We would like to make it clear that Greencore firmly supports the inquiry being carried out by your Committee and indeed we are happy for this letter and the attached memorandum to be used as written evidence. However, given it was conclusively proved that we actually had no contamination in our supply chain, we do not feel it would be either appropriate or a good use of the Committee’s time to provide any additional oral evidence.

As a leading food manufacturer in the UK, we are currently working with all industry bodies and with the Department for Environment, Food and Rural Affairs to ensure best practice going forward and will continue to do so.

Executive summary

Greencore is a major food manufacturer in the UK. It has 16 food manufacturing facilities in the UK, producing products such as chilled ready meals, chilled soups, chilled sauces, sandwiches, chilled quiche and ambient sauces. It is largely a ‘private label’ food manufacturer’, i.e. it manufactures products for brand owners, in most cases the major multiple retailers in the UK. It is a leading member of the Chilled Food Association ("CFA").

When the issue of horsemeat was uncovered in mid to late January of this year, Greencore, along with all food producers in the UK, undertook the rigorous testing exercise on ingredients and finished products as per the Food Standard Agency’s guidelines. There were two groups of tests regarding Greencore products: a) tests that were instructed by Greencore on raw materials and ingredients and b) tests carried out by the brand owners on finished products produced by Greencore. To date, 222 tests have been conducted for the presence of equine and the results have been and will continue to be submitted to the FSA. All test results were clear (negative at the 1% threshold) except one (positive) test on a finished product carried out by the brand owner – in this case Asda. A thorough and detailed investigation on this positive test concluded that there was absolutely no evidence of contamination and that the only explanation for the positive test was that there must have been an error of some sort with the original test.

Although this has been a difficult time for the company and has caused much distraction and indeed expense, we are immensely proud that Greencore has had no issues with contamination at a time when it is clear that the country’s food-chain has been compromised. Notwithstanding this, we feel it is our responsibility to support and, indeed lead, the industry’s response to the issue and will continue to work with all industry bodies in this regard.

Supply chain and FSA testing

Greencore sources all raw material and ingredients, including beef, for its products from approved suppliers. The process of approval is detailed and includes the supplier being regularly audited. Greencore also insists that its suppliers in turn audit their own suppliers where relevant and that they can demonstrate full traceability.

When the issue of horsemeat was uncovered in mid to late January of this year, Greencore, along with all food producers in the UK undertook the rigorous testing exercise of ingredients and products as per the Food Standard Agency’s guidelines. Effectively, there were two groups of tests regarding Greencore products: a) tests that were instructed by Greencore on raw materials and ingredients and b) tests carried out by the brand owners on finished products produced by Greencore. In the case of Greencore tests, the results were submitted to the FSA through the representative body, the CFA and, in the case of the brand owner tests, the results were submitted via the respective industry body, in most cases the British Retail Consortium ("BRC").

In total to date, 163 tests have been carried out by Greencore for equine with the results being submitted to the FSA (140 tests as at the last submission). These tests relate to both beef and

other meat related raw materials and ingredients in the Greencore supply chain and beef and other meat related finished products produced by Greencore where Greencore is the brand owner or manages the brand. Other brand owners, including Tesco, Asda, Sainsbury’s and the Co-op also shared with Greencore the results of a further 59 tests for equine conducted on products manufactured by Greencore but where they are the brand owners.

In addition to this total of 222 tests, Greencore has also conducted both 82 ‘hygiene’ PCR tests for both equine and other meat species (using both swabs and samples of cleaning rinse water) to validate our cleaning regimes and a significant number of ATP and rapid protein swabs.

All test results were clear (negative at the 1% threshold) except one (positive) test on a finished product (a Beef Bolognese sauce) carried out by the brand owner – in this case Asda.

A thorough and detailed investigation on this positive test concluded that there was absolutely no evidence of contamination and that the only explanation for the positive test was that there must have been an error of some sort with the original test. Notwithstanding the fact that we uncovered no evidence of contamination in our supply chain after all these tests, Greencore is working with all industry bodies to ensure and protect the integrity of the supply chain going forward. To this objective, Greencore has, in conjunction with its customers, introduced many new procedures in its supply chain including more audits and testing on beef and other meat ingredients before they are ‘released’ into the supply chain.

The ‘positive’ test

Greencore was informed by Asda, the brand owner, on 16 February 2013 that a product produced by Greencore at its facility in Bristol had shown a result of 4.8% of equine DNA in a quantitative PCR test. The full name of the product was Asda’s Chosen By You 350g Beef Bolognese Sauce).

Greencore subsequently carried out an intensive investigation as to how a positive test could have occurred. The investigation was overseen by an independent expert. There were a numbers of elements to this investigation:

1. An investigation including an audit of ABP Food Group's plant in Nenagh, Ireland, the approved supplier of the meat in the sauce

2. An investigation of the processes, including further testing, at the facility in Bristol; and

3. Further testing on the product that had tested ‘positive’.

In all elements of the investigation, no evidence of contamination was found in the supply chain.

There was only one beef (or indeed meat) related ingredient in the sauce and that was beef supplied by ABP from its plant in Nenagh in Ireland. The plant was designated and approved to supply beef in the product as was documented in the product specification. During the investigation, Greencore audited the ABP plant and found no evidence of equine contamination. This was backed up by a separate investigation at the ABP plant by the Department of Food and Agriculture, Food and the Marine in Ireland who also found no evidence of equine contamination.

In Bristol, Greencore carried out an extensive programme of testing of other finished product and raw material at the facility to determine if it was possible that there may have been some form of cross-contamination. Again, all testing, referenced above, produced negative results for the presence of equine protein/DNA.

The brand owner had informed Greencore that, as well as the positive test result, they had also had a negative test result on the sauce that had been withdrawn. In addition, they had tested another beef product produced with the same batch of mince beef as the alleged contaminated product and this too tested negative.

Greencore therefore instructed further multiple tests on two reference samples of the same batch of the same product that had tested positive. Greencore instructed that these two samples be tested at three separate independent accredited laboratories. In total, six tests were carried out: four PCR tests and two Elisa tests. All six tests showed negative results.

Finally, the brand owner also informed Greencore that they had also carried out a further test on a retained sample of the product with the same date code and that this test result also came out with a clear result.

The sauce is a homogenous mix, i.e. the ingredients in the sauce are mixed together and cooked for approximately one hour whilst being continuously stirred. Therefore, had equine been present, especially at a 4.8% level, it would be expected to have been found in the reference samples also.

This detailed investigation therefore came to the conclusion that there was in fact no evidence of contamination and that the only explanation for the original positive test is that there must be an error of some sort with the test itself rather than actual contamination. The brand owner is supportive of these findings and has been working with Greencore to reinstate the product onto shelves (the product is expected to be back on shelf this week).

More about Greencore

Greencore is a leading manufacturer of convenience foods. Its primary operations are in the

UK but it also has food manufacturing operations in the US. It has some legacy ingredients businesses in Ireland, although no food manufacturing there. The company is a public listed company, listed on the London Stock Exchange, and had revenue of £1.2 billion in the year ending December 2012.

In the UK, it operates out of 16 manufacturing facilities, producing the following products: chilled ready meals, chilled soups, chilled sauces, sandwiches, salads, sushi, chilled quiche, chilled desserts, beef spreads, ambient sauces, ambient pickles, ambient cakes and frozen Yorkshire puddings. It is not a primary beef (or other protein) processor.

It is largely a ‘private label’ food manufacturer’, i.e. it manufactures products for brand owners, in most cases the major multiple retailers in the UK. In fact, it supplies all the major retailers in the UK.

Greencore is a major employer in the UK, employing c.10,000 people. It continues to make significant investment in its business and facilities in the UK, most recently with an £11m investment in its Chilled Desserts facility at Evercreech, Somerset. All of Greencore's UK manufacturing facilities have achieved the highest BRC Grade A standards.

It plays a leading role in a number of industry trade bodies, including the Institute of Grocers and Distributors ("IGD") and the CFA, where it is represented on and chairs a number of industry working groups and sub-committees. Greencore takes a leading role in supporting the

Government’s health initiatives and is a signatory of the Responsibility Deal on Public Health.

Greencore also plays a leading role in the IGD's 'Feeding Britain's Future’ initiative, which last year offered skills and employability training opportunities for 10,000 young unemployed people in the UK. Greencore has links with Reading, Leeds, Nottingham and Norwich Universities through its participation on industry advisory boards and providing graduate sponsorship.

April 2013