Michel Doukeris: Okay. I think that, again, the first half of the year was strong. Of course, this quarter two, we had our own challenge here, but in puts and takes, you saw things working very well across four out of our five regions with very strong growth. And I think we mentioned before that the second half of the year, we would have differences in terms of quarter three and quarter four because of the World Cup last year. So we have, at the back end of the year, some of the benefits, Fernando was mentioning in terms of the commodities already turning into more tailwinds than headwinds. So this is in the back end of the year. And we have a very strong phasing as last year we invested more sales and marketing aligned with FIFA in the back end of the year.
And this year, we have decided and we planned heavy up investments on the Q2, Q3. So we see now quarter three, quarter four coming, the balance is more commodity tailwinds in the quarter four, heavier investments in quarter two, quarter three in sales and marketing, while we maintained our outlook for the full year. I’m not sure if Fernando you want to compliment something.
Fernando Tennenbaum: So I think that’s exactly right. We remain confident in the business. As Michel pointed out very well, we had a very good performance on Q2 on four out of our five regions. And the performance going forward, we need to monitor the phasing but we remain confident we are making no changes to our outlook, and we continue to expect to have a strong year.
Mitch Collett: Thank you guys.
Operator: Thank you. Our next question is coming from the line of Rob Ottenstein with Evercore. Please proceed with your question.
Rob Ottenstein: Great. Thank you very much. I want to circle back to the U.S. Two of the things that I think have concerned investors the most is what’s going on in on-premise, concerns at the on-premise may be worse than what we see in the scanner data. So if you could talk about that and what you see on the on-premise with TAPs? And then the promo environment, obviously, we see in the press and in the news, a lot of pretty deep discounts and couponing. How is the promo environment now that we’re in the middle of the summer season? And how does it compare to the past? Thank you.
Michel Doukeris: Hi, Robert. Good morning. Thanks for the question. Two questions here. I think that own enough. When you look at the numbers, pretty similar, there’s nothing like big to highlight in difference between on-premise and off-premise so far. And I think one important indicator that you brought that we are always monitoring is TAPs. And that is – it’s not now. I think that since they come back from COVID, there is a quite meaningful rotation in terms of TAPs, and we see bars, restaurants, optimizing for high turnover. I think that’s the best way to explain what’s happening. And you see brands that have higher sales and turnover getting more TAPs. And these large varieties that some points of sales carry that had very low productivity being delisted.
We see this happening across some of our craft brands or brands that have low turnover. We measure this with our wholesalers and through independent. We have retained more than 98% of our TAPs throughout the year. And some of our brands are gaining a lot of TAPs. Some of brands are declining some TAPs. But all in all, on-trade and off-trade performance, very similar, as you could see on our numbers. The second point, I think, that we addressed in the last call, the promotional activities, pricing and discounts. So the environment in pricing, I think that healthy. If you think about the inflation last year this year, the fact that we took two price increases last year, given the size of the inflation and costs, and there is a good carryover throughout this year.
As per plan, we concentrated more of our commercial activities in the middle of this year. So this doesn’t have anything to do with the Bud Light situation was planned and announced and shared with our wholesalers last year. We see the depth and the intensity of the promotional activities in line with historical levels. There is no anything beyond that. But of course, during the summer, you saw some activities and people bringing a lot of news around that, but not different than what the Super Bowl activity is promotions, coupons across the board. And of course, we saw in the U.S., these two price increases last year trying to catch up with inflation. Inflation is slowing down a little bit this year but it’s still neither margins or the full price caught up with inflation yet.
So we continue to monitor the environment and especially the consumer purchase power to have our plans for the end of this year, next year in place. Thanks for the question.
