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Hi Howard- there has been competition for Lifeway for at least 3 years now. The fact that it's held its own is a very good sign.

Expansion into the frozen category may help them. I can get a read on that from where I am, and I'll report my impressions over the coming eons. It's not a very impressive product, but then IMO either is the drink (just talking "wow" factor here, not product quality). Kefir obviously has its fans and if they'll cross the aisle to the freezer, perhaps it will be easy money for the company. The frozen kefir is hitting the shelves right now. I'm sure there will be promotions in another few weeks, then we'll see how it moves off the shelf on an every day basis.

As far as low milk prices are concerned, I think that's always been BS. But at least they are consistent. If it's really true, strap on your hat for a couple of lousy quarters, because milk has been on the rise for the past 3 months and there is no end in sight. Surely milk cost has an effect, but their biggest expenses are in marketing (especially marginal products that may or may not exist that still out there?)

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