The problem is unless they are increasing sales (and at a profitable price point) all they are doing is wasting money. The fact that there is absolutely no mention of sales growth (even as an aim of the company) tells me that things are not going well on that front.
Really we can't expect that Kinder Surprise can sell $100 million in 6 months and have it not affect Yowie sales. Add in they are probably having to sell at a loss (with all the kickbacks they have to offer to get the placements in these new stores) and I think the upcoming 4C is going to look pretty grim.