A – Billy Gifford: Yes, I think from a distribution we’ve got it in the stores and while you may see small fluctuations as we decide if we want to add additional stores and distribution, but we’ve got it to where we want it. You’ll recall we were capacity constrained from a manufacturing basis where beyond that it continues to grow. I would say that growth as we move forward, as it continues, even though we’ve been talking about it and you guys have been talking about it for a while, it’s still fairly new to the consumer. So it is continuing to drive awareness and specifically trial. Once the consumer tries it, they enjoy the product. So that’s where the growth will come as the success in achieving new consumers to the category as they transition.
I think when you think about that transition through time, it’s important to remember that you’re looking at the consumer, specifically dippers that are moving currently in large amounts, but it’s also talking to the cigarette consumer and it allows oral tobacco product to be available to consumers that previously rejected moist smokeless tobacco.
Matt Smith: Thank you for that Billy. I’ll pass it on.
A – Billy Gifford: Thank you.
Operator: We’ll take our next question from Andrei Condrea with UBS.
Andrei Condrea: Hi, good morning everyone. Thanks for taking my questions. Two from me please, if you don’t mind. Firstly, when looking at the U.S. Cigarette industry, we saw that discount was stable on a sequential basis, bucking the trend from the past three to four years. How much of that do you think could be attributed to your Marlboro Black Gold for instance, and just increased promo activity from your NPS? Thank you.
A – Billy Gifford: Yes, I don’t know if I would specifically attribute it to increased promo. As we’ve highlighted for you, the adult cigarette consumer in the U.S. is really under economic pressure and so you look to certainly give them places to land, specifically in Marlboro a place to land, where they can continue to engage with Marlboro. We see that as both, less expensive versus than leaving and returning, and we’ve been successful with that in the past, and I think you see the result first to second quarter.
Andrei Condrea: Makes sense, thank you. And secondly, this is a bit more medium-term, but as you’re pushing harder into vaping now with NJOY, illicit products are a problem on the market as flagged by one of your peers. What can you and said peer do more to, well, basically improve enforcements in the area and get those numbers down?
A – Billy Gifford: Yes, I think its continued engagement, both with congress as well as the FDA, so really making this their top priority. You saw under aged use of e-vapor come down, but it’s essential that the FDA really focused on enforcement, its illicit products in the marketplace with flavors that are not authorized. And so you saw in the most recent national youth tobacco survey that the most popular product with youth following was in the list of products in the marketplace. Now they have started stepping up their enforcement, but it needs to be more vigorous in the marketplace. Even if they would just publish a list of those products that are authorized and those that are under review, it would certainly level stuff at the trade, because the enforcement that they are doing while encouraging isn’t enough to change what the marketplace is – what we’re experiencing in the marketplace.
Andrei Condrea: Very clear, thank you. I’ll pass it on.
Operator: Thank you. [Operator Instructions] We’ll take our next question from Gaurav Jain with Barclays.
Gaurav Jain: Hi. Good morning, Billy. Good morning Sal.
Billy Gifford: Good morning.
Gaurav Jain: Hi. A couple of questions from me. So one is on the e-cigarette industry growth, clearly disposables are cannibalizing closed end e-cigarettes. So why are you launching the NJOY ACE and not the NJOY daily product? In that context, can you also just tell us where you are with the PMPA application of the next gen product, which is – which you have mentioned you have filed.
