We went through this journey in a really positive way. We’re grateful for the partners we’ve had that help us build the business. So we don’t – we’re not trying to disparage them. It’s just – it’s a natural step in our business as we evolve to build capability, to have internal capability and a level of granularity in managing our business. So I think those will be enhancements for this year as we move forward on RTD versus trying to ascribe a certain amount of blame for things that – the way that we had built the business in the past, the way we built the business that enabled us to grow at an incredibly rapid pace starting in March of 2020, the perfect time to launch a business that sells product in the CNG channel. And we’re just continuing to build on that and evolve in a way that many CPG companies do as they gain scale.
Gregory Iverson: And Steve, this is Greg. I’ll take your second question related to our path to positive EBITDA in 2023. So starting first with gross margin. You’ve seen our guidance there where we said expect a range of 36% to 37.5%. So that is a pretty significant increase from where we ended 2022. We’ve talked a little bit about some of the pricing initiatives that we’ve taken both in Q1, as well as those that we took in late 2022 that we’ll continue to benefit and roll into 2023. We also have a really significant productivity portfolio, particularly within our shipping and fulfillment. So there’s a lot of cost savings that our transportation team is going to be driving. And then the last point to is mix is important because we mentioned the area of the business that’s growing by far, the fastest is our wholesale channel where we have the highest gross margins.
So moving down through the rest of the P&L, next on marketing expense. The key call-out here is expect marketing expense on a dollar basis to be down year-over-year. So that obviously suggests significant leverage on that marketing line, and that’s something that I think we’ve been telegraphing pretty consistently over time, which is as we pivot more and more into the wholesale channel, the wholesale channel requires a lot less marketing spend than our D2C channel. And then it’s also part of why our guidance around the B2C channel, we think is pretty modest and pretty conservative because we’re just not investing a lot in that targeted customer acquisition for D2C. And then rounding it out with SG&A, our intent is to keep our – I’m sorry, G&A, keep our G&A dollars as close to flat year-on-year as we can.
We’re – our salaries and wages is going to be up year-on-year just because as you well know, we ended 2022 with a lot more staff than where we started the year and are rolling in. So – and we’ll continue to add a little bit selectively. So where we’re going to find – and where we’re finding a lot of efficiencies within G&A is really within our outside professional services or consulting fees and other third-party spend, where we made really substantial investments in 2022 to help us build out and grow these new channels. Hopefully, that’s helpful.
Steve Powers: It is. I threw a lot at you and you guys did a great job of putting everything. So thank you.
Gregory Iverson: Thanks, Steve.
Operator: And we have reached the end of the question-and-answer session. I’ll now turn the call over to Tom Davin for closing remarks.
Tom Davin: Thank you, everyone, for joining the Black Rifle Coffee Company Q4 2022 earnings conference call. We look forward to follow up discussions with many of you investors. In the meantime, have a great evening. Thank you.
Operator: And this concludes today’s conference, and you may disconnect your lines at this time. Thank you for your participation.
