Robert Moskow: Yeah, appreciate the clarity. Thank you.
Operator: Our next question will come from Peter Saleh with BTIG. Please go ahead.
Peter Saleh : Great. Thanks. I wanted to ask about the overall category and really what you’re seeing. It seems like you’re finding some success in some of these international markets, yet your sales in the U.S. continue to be under a significant amount of pressure. So maybe you can help us understand, are there any learnings that you can take from what you’re seeing in international markets and apply them to the U.S.? What’s happening internationally that’s not occurring in the U.S. to drive maybe the trend better? Are the prices lower in international markets like Germany? Or what exactly is the difference that you’re seeing better adoption there? Thanks.
Ethan Brown : That’s a great question. So the answer is this, and it’s somewhat nuance, but it’s the message and the reason the why is clear, right? So in Europe, the OI is different than it is here in the United States, particular, right? So consumers are very concerned about climate and the environment in Europe. Government is concerned that is too concerned about it. And they see for the reasons I mentioned in my prepared remarks, changing food as a key way to adopt and adapt in the time frame that we need to. And again, this actually has to do with specific — the nature of this sort of admissions coming from from different sources of greenhouse gas. And so in the case of animal protein in venturous oxide and methane, those are very potent emissions but also have a shorter residency in the atmosphere.
So clear them out, right, you can basically buy time and deal with the climate issue one of the most effective ways. So Europe understands that. The consumer is getting that young people that are getting in Europe — and here in the U.S., it’s more driven by health, and there’s been a decline in the health perception of our category. And so I think we noted there’s a food research institute or something in that good marketing institute noted 50% of consumers in 2020 thought that plant-based needs were healthy and now that number is down at 38%. That’s a clear outcome of some competitive marketing we’ve done against us, and they’ve done a really good job at it. Done a very impressive job in changing the consumer perception. We now have to do the heavy work as an industry to pick up.
But that’s the main difference, right? There’s a clear and compelling why in Europe there was clear in the billing it here that has got a road that’s become eroded, and we need to basically reestablish that. That’s what we’re doing.
Peter Saleh : Can I just follow up on the number, the 50% going to 38% perception. Has that continued to decline in ’23? I’m not sure if you know. And what do you think it was going to take to kind of bend the curve there on that figure.
Ethan Brown : Yeah. I don’t know second, but my guess is that it’s going to start reversing. And the reason that’s going to start reversing is one I think it sort of plays its course. At some point, there’s — that people medical community and others start to push back and say, wait a minute, guys, this is going too far. This is a very helpful tool to combat diabetes care to use cancer. That’s why you see easily stand up to going to certify first day ever, right at the heart of the state works or the scamper work we’re doing or the work we’re doing about cancer side. I mean at some point, right, you get — you strip out the noise and you start to see some of the key proof points. I think there’s some additional work is being done outside of our company and in the broader category that also helped that — so I — it could continue to worsen, but I got it. I think you’ll start to see a rebound.
