John Baumgartner: In terms of Dymatize and the e-commerce pressure there, you stress pricing as a big factor. But I’m curious with the advantage Dymatize has over these emerging brands, bricks and mortar, and marketing resources, is there anything you can do in physical channels to drive more engagement, more ingredients awareness, and sampling purchases that then converts back to stronger e-com sales even at the higher price points?
Darcy Davenport: Yeah, I think there’s a lot Dymatize can do. I think that we learned a fair amount this last quarter. I think it caught us a little off guard how aggressive a lot of these emerging brands were on e-com. And we had a marketing campaign, but we were a little conservative on the weight. So our share of voice was lower than it needed to be. I think ton of learning. We’re going to be aggressive on the back half, not only with marketing campaign across all channels, but really supporting e-com. We’re going to be looking at leaning a little more into promotion, just to be competitive. And then also just from a campaign standpoint really excited about Christian McCaffrey and being able to – that is just a timing thing of when we signed him and when we can actually get access out there.
So that’s going to be really exciting to be able to lean into his celebrity and push that out. Dymatize is an amazing brand. It’s second biggest whey protein brand on ecom. So I feel great about the business. Little bit of learning in Q2, but nothing that I don’t think we can – we’ll be able to ride it in the back half to get back to growth.
Operator: Our next question comes from the line of Bill Chappell from Truist Securities.
Bill Chappell: Darcy, just maybe a follow-up on Bryan’s question in terms of new consumers, and I just didn’t know if there was a way to quantify, like, the percentage that are now male, the repeat rates, stuff like that you might have. And the reason I ask is, I just – and this is not specific to you, I just have a tough time with the household penetration kind of metric because it would – you say that you have low household penetration, but then also being at 18%, 19%, seems like one in five households is pretty good household penetration for this stage of the category or even if it – to say, one in five households of a beverage category seems like you should be a lot bigger in revenue. So I’m just trying to understand what does that mean, or how do you look at the opportunity beyond household penetration, or even how do you quantify household penetration to kind of get you excited?
Because it seems like repeat rate or quantifying new consumers into the category would be helpful, at least to us, to better understand the metric.
Darcy Davenport: It’s a great question, Bill. First of all, male-female split. So I think, again, what’s unique about Premier is it’s a pretty even split, little more male than female. So, call it, 60/40, 55/45. But good split between male and female. That is unique. So you think of the diet brands, more women than men; sports nutrition, more men than women. Most of the other brands in the category kind of have a specific lane and a defined consumer. And really, it’s hard because of the brand to get out of that. So that is one of the things that’s really unique about Premier. First of all, just hit that one. On the household penetration and repeat rate, so here’s the way I look at it. First of all, strong category leading repeat rate, about 50%.
And on the household penetration, so we’re right around, call it, 18%. The RTD shake category, about 45%; convenient nutrition overall, about 75%. So, overall, I think that like there is a lot of room. When I go to another category, which is relatively new, but more mature, or relatively – kind of conflicting, I guess they’re about the same age, so to speak, but bigger, is energy drinks. And when I look at that, the energy drink category, about the same household penetration as convenient nutrition, so call it 70%, 75%. But the number one market share and number two market share players are at 50%. So I look at that and I’m like, okay, so there is a ton of room to grow here, knowing that the top two brands are bringing in a lot of new consumers, 80% of our growth is coming from outside of the category and that – and it’s already coming from outside of the category and we really haven’t started marketing.
That just tells me there is a ton of room to grow both the brand as well as the category. Does that help, Bill?
Bill Chappell: Yeah, yeah, definitely. I’m sorry, I could probably keep going, but I will keep it all short. Just then go to Dymatize, one follow-up. Do you think the growth of Premier Powder is leading to some trade-down that’s affecting Dymatize or is it mainly discounting from other brands?
Darcy Davenport: They’re very different consumers. There is not a lot of interaction. So definitely other brands. And like I said, so the beauty – again, same dynamics between Premier RTD and Premier Powder. Over 80% of the growth on both businesses are coming from outside of the category. So it’s less switching and trading down, but actually consumers are entering the powder category through Premier.
Operator: Thank you. At this time, I am showing no further questions. This concludes today’s conference call. Thank you for participating. You may now all disconnect.
