Kevin Kwilinski: Yes. I think there is low hanging fruit and we are addressing it quickly. I would say that I wouldn’t use geographic region as the primary differentiator of highest performing and lowest performing. I think the reality is we have a range of performance within each of our businesses and we have room to improve the best and we have a lot more room to improve those that aren’t the best.
Michael Roxland: Got it. Thank you. And then just with respect to think it was described as a beachhead you’re building in the consumer package in North America in the rigids. How long, if you could give a timeline, do you think we would see for that to spread to your other parts of your portfolio?
Kevin Kwilinski: Yes. I think we can have the process well ingrained within six months in that business and we will begin kind of halfway through there starting to talk to the other businesses about what’s happening and they will begin to pull adoption, and we’ll continue to execute that over the coming year through the course of 2025, and I think it will the impact will be relatively quick. We have some good momentum already. We’re not talking about taking something that is broken, but I think we can accelerate the pipeline we have that we’re managing. We can make it a better pipeline, a stronger one and it will accelerate definitely in 2025 and 2026 our ability to win.
Operator: Our next question comes from the line of Edlain Rodriguez of Mizuho Edlain. Your line is now open.
Edlain Rodriguez: Good morning. Thank you. Just one quick one on the volume that you’re seeing out there. I mean, again, volume has sequentially improved and you expect it to continue to improve in the second half. Like what do you see? Like, is it mostly inventory restocking you’re seeing? Or are you seeing real fundamental demand driving that volume?
Kevin Kwilinski: Yes. I think early in the year, as we entered into our fiscal 2024, you still had a bit of destocking in some categories that was happening. So I think some of that acceleration was coming from that, but overall, the bigger factor is just the consumption levels improving, which we expected to be the case and we expect to continue to see improvement as more and more CPGs are focused back on volume creation and driving volume and not just on taking price and profit. I think the other thing I would like to emphasize is we look very closely at how we perform relative to our peers and relative to the volume indication that we get from some of our customers and that are public and we continue to outperform our, whatever however soft we have been in volume, we have outperformed our peers in this area and we will continue.
Now some of our peers, about half of them don’t give volume guidance. So you don’t have that transparency, but we do and we hold ourselves accountable to that volume and we feel very good about how we have performed from a volume basis relative to our peer set.
Edlain Rodriguez: Okay, makes sense. And my follow-up is in terms of the portfolio optimization, again forgive me if I missed that before. Can you talk about where in the portfolio you still have much work to be done? Like is it primarily in the flexible segment or is it like in the consumer packaging? Like where would those divestitures be more likely to be coming from?
Kevin Kwilinski: Yes. We have opportunities in flexibles and CPI, so consumer products international, and some smaller even in CPNA. So it’s across the board, But I would say look at flexibles and CPI as the bigger impact.
Operator: Our next question comes from the line of John Roberts of Mizuho. Your line is now open. John Roberts, your line is now open.
John Roberts: I’m sorry. I wasn’t queued up.
Operator: Sorry about that.
Operator: Thank you. This concludes the question-and-answer session. I would now like to turn it back to management for closing remarks.
A – Kevin Kwilinski: Just want to thank everyone for your interest in Berry. We feel great about where we stand at this point in the year and we’re looking forward to a great second half. Thank you.
Operator: [Operator Closing Remarks].
