Nestle says it's suspending deliveries supplied by a German firm after finding traces of horse DNA in its products.
The company's pulling two chilled pasta products from sale in Italy and Spain - and is apologising to customers.
It comes as Lidl pulls ready-made meals from the shelves of its Finnish, Danish and Swedish stores after tests confirmed the presence of horsemeat.
It's the first time the Europe-wide scandal of horsemeat sold as beef has hit Finland and Denmark.
Several Swedish supermarket chains have already pulled lasagne dishes from their shelves.
Sky's Rhiannon Mills describes the products involved:
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