Key is still can the company grow with the reduction in costs -...

Key is still can the company grow with the reduction in costs - ie is teh business sustainable at that level or is it window dressing the business to exit?

If it is not sustainable and they lose " momentum" I'll use that term loosley then they are toast as it takes so much more to get it moving again in this type of retail product. Thats why cadbury hershey ferraro etc continuously spend on advertising, placement in stores, rebates to stores and direct to consumer - market advantage via scale.

Yes some niche companies survive but without clear widespread increase enviro, surprise and consumer interactivity I am not sure how YOW will increase volume or maintain margin. Availability and extra channels help spread risk but without interaction with consumer justifying consumer to seek it out it will get lost in sea of other products paying placement and promotion space with scale IMO.

It will take a further quarter to see if lower cost are hampering any volume expansion as it is a delayed response unless all their sales were discounted/ rebated etc.

Choccy is a tough market via retail channels.