And our brands continue to perform well. We see strength in Michelob ULTRA, we see strength in Bud Light. We see better performance so far in some of our core brands and our Beyond Beer portfolio performing very well.
Operator: Our next question comes from Mitch Collett with Deutsche Bank.
Mitch Collett: I’d like to ask a question on BEES, please. I think you say in the release that 40% of your revenue in China is now via digital channels or at least it was by December. And I think at the Q3 stage, that was 15%, so a pretty big uplift. You talked about China and the U.S. being part of the third wave for the BEES rollout due to the wholesaler model there. So, can you comment on the benefits of that digital rollout and what it brings to China and how we might think about that as it goes into other wholesaler-led markets?
Michel Doukeris: Hi Mitch. Thank you for the question. It’s very interesting because I just came back from a trip in China. I was there in the region for one week. And one of the things that I spent time looking at and discussing with the team was BEES. And you are right, like BEES is the — China is one of the markets where BEES was being built for a different role to market. And because of the difference on the role to market is this third wave in which deceleration is not the same as when we have direct distribution. I was super glad to see that the product is very good. It is scaling up very fast. Usage by the retailers is very, very good, and they are very happy. The NPS is high. And one extra point coming from BEES in China is a little bit complicated to explain but I’ll try to put this in a simple way.
In China because of the 3-tier system of China that can be a 5-tier system is very complicated for CPGs to trace product and to have visibility throughout the route to market. Because we are integrating very well QR codes the wholesalers and BEES as a tool, we are doing a lot of geolocation, we are getting an unbelievable array of visibility through the network. And it can really now get even when we have more tiers in the route to market, the full visibility of the sales on a pack-by-pack basis. And of course, by doing that, we are integrating revenue management, promotional actives, our wholesaler and logistics network. So, I think that BEES will continue to scale very fast in China. Both wholesalers and retailers are very happy with the product and what we bring in terms of better data, quality data and visibility.
And I think that the effects in China will be pretty similar to other markets. We’ll see acceleration in sales, better trade programs, better integration with our marketing campaigns and more efficiency. It’s very effective and helps us big time.
Operator: Our next question comes from Brett Cooper with Consumer Edge.
Brett Cooper: I wanted to dig into your approach to managing the portfolio with respect to balancing the need to support the core versus innovation. And more specifically, innovations in more traditional beer like Brahma Duplo Malte have been successful, which we can see in the innovation contribution. But expansion in Beyond Beer has proven, I think, a bit harder with the Company being at the strategy of innovating and extending for a period of time. I was hoping you could share learnings from your work over the last several years and maybe how you balance efforts and investments on the core versus innovation, and if that process has changed at all? Thanks.
