Ethan Brown : Yeah, it’s also a very good question. You should expect that. I think we’ve been focused right now during a period when a lot of these flowed through on cleaning up this health narrative. So I think a lot of our marketing for the balance of the year is going to hit that theme. But overall, my vision for this is that it would be very much like the release of any new product, three, four, five, six, seven generate excitement on each of those. So — but I think right now, we have a broader category issue that we have to hammer home. And once we can fix that, then we can spend those dollars in a more tactical one.
Rob Dickerson : Fair enough. Thanks, Ethan.
Operator: And our next question will come from Andrew Strelzik with BMO. Please go ahead.
Andrew Strelzik : Hey, good afternoon. Thanks for taking the questions. I had two quick ones. The first, what are you seeing in terms of competitive dynamics across the category? You mentioned your use of trade discounts in the quarter and as you’re seeing the pressures on the category, are you seeing more competitive activity, competitive intensity pick up alongside that? Or how are you expecting that to evolve going forward? That would be the first question. And the second question is just on the margin side. there are a bunch of headwinds that you listed impacting the quarter, which of those do you see sticking around versus moderating through the rest of the year or within the high-level buckets as you mentioned, where you see the biggest opportunity for margin expansion. Thanks.
Ethan Brown : I’ll start with the second one on margin. I mean I think 1 of the transitory issues that we don’t expect to see again with a flow-through of some highly capitalized inventory last year. And that was — I think we did the right thing there where we were slowing production to help us run through inventory for the balance of 23%, but it cost us a little bit this quarter. We had some underutilization things and some other stuff that we don’t expect to reoccur at the same level. So we feel pretty good about the balance of the year, but finally some of this really good COGS were showing up. On the broader category and competitive dynamics. I think that’s only — I mean there’s two ways to look at it. One is, again, like let’s get the category message right first, so we can welcome new people into the category again.
And I think doing a lot of continued discounting, whether it’s us or a major competitor we’re just trading among consumers. So it’s less productive. So I think it’s really about restoring the overall category message. But the thing that has happened is there’s been a tremendous kind of shake out in the category, which is to our benefit. We’re still standing. We feel very strong. We feel our product is getting better, our cost starts getting lower. Our operations are getting more efficient. Our strategic partnerships are moving forward. So we have a lot of confidence about our future even as we’re seeing less competitors. They have a good competitor, a hospital is a very good competitor, and they’re doing a lot of good things, but that’s good for the category.
It’s very good for the category. So.
Andrew Strelzik : Great. Thank you very much.
Operator: This concludes our question-and-answer session. I’d like to turn the conference back over to Ethan Brown for any closing remarks.
Ethan Brown: No, we appreciate it, everyone sticking with us through the quarter. We knew this was going to be a tough comp and it didn’t materialize exactly what we wanted to. But I think the good news is we’re through to a second half, which we hope will show return to growth and the first in what will be, I think, a good climb out of this and look forward to reporting that next quarter.
Operator: The conference has now concluded. Thank you very much for attending today’s presentation. You may now disconnect your lines.
