Darcy Davenport: Sure, Matt. Yes. So Q2 will be — so remember, Q1 is kind of a seasonally low period. So, no promotions, very few promotions and marketing, Q2 is where in the category, most new users are entering into the category. So that’s when we will have promotions on both Premier and Dymatize. We will also be launching for Dymatize a new media campaign in Q2, along with some media on Premier Powder. When you go to Q3, extension of the media campaign on Dymatize, and then in Q4, we will have promotions on the Premier Protein full brand, and our plan right now is to launch a national marketing campaign in Q4, again, barring capacity. So, that is kind of when you look at the marketing and promotional calendar for ’24 as it sits today.
In regards to where there will be kind of promotional loads, I think one encouraging piece is that we will — I think in Q2, our major — one of our major cloud promotions is a little bit later in the quarter in Q2. So, there won’t — there shouldn’t be a massive difference between where you have a load-in in one quarter and consumption in the next. It will mostly be in the same quarter versus when back in kind of ’21 when we were doing big promotions. I don’t know, Paul, is there anything else that we’re — we’re going to see a big change between shipments and consumption?
Paul Rode: No. If you look at consumption and shipment volumes, we’re expecting those to be — to largely track throughout the year. We’re not at — to Darcy’s point, we’re not expecting any major loads, deloads. We are lapping in our first quarter a trade inventory deload, which is — or actually a load, I should say. So, it’s actually a headwind in the first quarter. So, that’s — some want to point that out. But that also — we also had a deload in the second quarter last year, which also benefits our — which should be a tailwind to our second quarter. So, those are the only two pieces a bit from true consumption volume versus shipment volume, we expect them to largely track in fiscal ’24 by quarter.
Matt Smith: And as a follow-up, if we take a step back and we think about the level of promotional activity behind Premier Protein shakes and the rest of the business in fiscal ’24. Is this still just a step towards getting back to a full investment level? Or would you consider this year once you get through the first quarter kind of representative of the level of promotional activity that you think you need behind the two brands?
Darcy Davenport: It will largely be on track, I would say. We have — there isn’t — I think we’ve communicated this before. But back in ’21, I think we are a bit heavy on promotion. And so I mean, I think we were doing up to kind of three major promotions a year. I think what we’ve learned over the last couple years is that we are probably subsidizing a fair amount of volume. So as we move forward in ’24 and beyond, I think we are getting back to the level that we think is appropriate for our business without yes, subsidizing a lot of volume. So I would say ’24 is representative.
Operator: [Operator Instructions] Our next question comes from Jim Salera with Stephens. You may proceed.
Jim Salera: I wanted to ask, you had touched on the benefit from having some temporarily discontinued flavors come back online. Could you just offer some color around — does that represent an opportunity to bring incremental households back to the brand that maybe are more focused on a specific flavor? And so if their flavor is not available, they don’t shop Premier? Or is it more represent just increased buy rate, where a consumer is likely to buy both out of their plain vanilla flavor and then their preferred flavor?
Darcy Davenport: Yes. Jim, it’s really both. So you saw a bump up in household penetration in the supplemental presentation that we have on our website. You saw a bump up about one point in household penetration. It’s a combination of — we did start light promotion in the quarter, and so that was part of it, but it’s also partially bringing back those paused flavors. So — and those are people that they really like, cinnamon roll, for instance. And so, they were waiting for it. So absolutely, it’s a combination so both buy rate as well as household pen.
Jim Salera: And this might be too early for you guys to have an answer on this yet, given that the national marketing campaign is towards the end of the year. But do you have a sense of kind of what the messaging is going to be there? Is it really to kind of communicate use occasions to consumers so it’s more like to grow the category? Or is it something specific for Premier?
Darcy Davenport: So I’ll talk about — so both. So we plan to have a new campaign on both of our brands. Since Dymatize starts in Q2, I have more information on that than I do on the Premier side of things. We’re still working on — obviously, we have our strategy. So first on Dymatize, very excited about the campaign, it’s a stronger creative that really is going to differentiate, Dymatize versus the rest of the competitive set around its premium positioning and science-backed aspect, which is really why consumers pick Dymatize. It’s because it’s a super premium, high quality, kind of the highest quality science-backed brand. And so we’re really hitting on that in our new campaign. On Premier, our strategy from a marketing standpoint has always been to use our consumers to communicate why they love the brand so much.
So it’s super authentic. It’s been very effective for the brand. So it’s a combination of that as well as communicating the amazing taste. So I don’t expect us to change from that overall strategy, but the teams are working hard to figure out what the right angle is to — for the Q4 campaign.
Operator: [Operator Instructions] Our next question comes from Matt McGinley with Needham. You may proceed.
Matt McGinley: So for the higher marketing spend this year, I think you were targeting something like 3% or 4% this year versus the 2.5% of sales you spent last year. Is that 3% to 4% in marketing still the right range? Or do you have that tighter than that now? And is the critical decision point, you made a couple of comments around how you would spend it. Is the critical decision point more around the production? Or is it more around the effectiveness of the 2Q advertising campaign that you would then kind of ramp the spend into the fourth quarter, if you really got good results from what happens earlier in the year?
