Feb 5 (Reuters) - Danone is withdrawing batches of infant formula in Austria, Germany and France, the company and an Austrian government food agency said, expanding an industry recall sparked by contamination with the toxin cereulide.

Several hundred lots of formula are affected, officials said. Read more at straitstimes.com. Read more at straitstimes.com.

Investors have been spooked at the prospect of the reputational damage the scandal could inflict on brands. The world’s largest formula maker, Nestlé, has seen its share price drop almost 4 per cent in the year to date, while Danone’s has fallen more than 13 per cent in the same period.

Danone said last Friday it was pulling a “very limited number of specific batches” of formula in targeted markets concentrated in Europe.

A widening infant formula contamination scandal has shaken the global market as cereulide—a dangerous mitochondrial toxin—has now been detected in products from Nestlé, Danone, and possibly others. With recalls expanding and investigations into infant illnesses and deaths underway,

Danone and Lactalis block and recall formula batches amid cereulide concerns linked to ARA oil, following Nestlé’s global recall and rising safety scrutiny.

While some of these yogurts can set you back up to $3.50 for a single-serving yogurt cup, Danone, the old-school brand behind Danimals, Activia, and more, is proving that it's still cool—and budget-friendly—with three new yogurt products less than $2.