Nestle, the world's biggest food company, has removed beef pasta meals from shelves in Italy and Spain after tests revealed traces of horse DNA.
The Swiss-based firm has halted deliveries of products containing meat from a German supplier.
Nestle is the latest in a string of major food producers to find traces of horse meat in beef meals.
A spokesman for the company said levels of horse DNA were very low but above 1 per cent.
Last week the firm said its products did not contain horse meat.
Nestle withdrew two chilled pasta products, Buitoni Beef Ravioli and Beef Tortellini, in Italy and Spain. The Nestle spokesman told the BBC that the company had identified a problem with a supplier from Germany.