Chris Mondzelewski : Yeah. No. Thanks for the question. I think, there’s not a ton of detail I’m going to give, but I think what I’ll tell you is, I’m just going to build a little bit on what Steve said. I think what we’ve done is, when you launch a business, and again when you think about the last couple of years, while there have been some operational challenges on RTD, the key for us right now is we’re now sitting with four of the top 20 and six of the top 30 SKUs in the market in total coffee RTD. So, we now have significant scale across the core portfolio that we have. So as you recall, a couple periods ago, I talked about wanting to really simplify our approach down to those six core SKUs. And we have our sales team driving hard distribution against those six core SKUs. Having scale in those six core SKUs now allows us to go optimize the supply chain behind that.
So, without going into the details, clearly when we’re moving more volume through those SKUs, that allows us for cost optimization in different ways across the different elements of the supply chain. So that’s a big component of it. And then the other component when you start to just think about total, is for me, it’s all about mix right? We’re going to continue to push what we believe is a healthy mix for the business. And we’ve talked in the past about how our grocery business works very well in regards to that. Our center store coffee business is a 40 plus margin and as we continue to push hard on that that is going to be a great tailwind. We’re going to do the same thing within RTD, as well. So I’ve already alluded a bit to innovation.
We’re not ready to share specifics on that. But suffice to say, as we continue to expand that business in the future, we will ensure we are doing it in a manner where we are creating a positive mix for us and the ability to drive higher margin.
George Kelly: Okay. That’s helpful. And then, two last quick ones if I could on the FDM business. I’m curious is there an opportunity for continued innovation there in launching new products that will maybe help drive sales growth at existing retail partners? And then secondly, as you expand, I think you said to everywhere by year end ’25, what’s that going to do to the FDM margin? And are these smaller – I think working with distributors in some of these smaller accounts I’m guessing will carry a lower margin profile, but just curious if you could help with that. Thank you.
Chris Mondzelewski : Yeah, no, let me address that. I think um first on the innovation piece, yes, absolutely. We will we will bring innovation every year. I think it’s a really critical component to competing really in any category within the consumer packaged goods space. But certainly in coffee, where consumers are always looking for new experiences. So as a super premium business that has had success in our initial year and a half in the market, we’re having conversations with the retailers we’re in now and some of our new retailers about what we can do to help them to continue to reinvent their coffee aisles. And one of the reasons we’re doing so, well is that, Black Rifle really in many ways mimics the out-of-home experience for consumers who want to have that in-home.
We will continue to drive our innovation in a fashion where we’re able to continue to do that. And we believe we can do that in a really high margin profile way. And then your comment on additional customers. That I’ll tie that back to the point I made on the previous question, which is around maintaining the profile of super premium brand. We will roll our distribution commensurate to being able to do that. So, absolutely, we’re not going to allow ourselves to degrade margin. You’re right I think, obviously there are different distribution components that go into smaller customers. We’re going to make sure we always have things set up in a way where we can deliver strong service for those customers, as well. But there’s no reason in my mind as we roll the majority of the FDM market, that we can’t maintain or even increase the margin profiles that we have now.
George Kelly: Thank you.
Chris Mondzelewski : Thank you.
Operator: Thank you. Our next question comes from the line of Jon Anderson with William Blair. Please proceed with your question.
Jon Anderson: Hey, good morning everybody. I wanted to start on just in FDM with your largest partner. Just if you could give us a bit more detail on kind of where you are now in terms of filling out the assortment and and being represented in all segments in the aisle. And then you’ve been in there more than a year now. And so any color on kind of how that kind of core part of the assortment there is kind of comping now that you’ve been in there a year would be helpful. Thanks.
Chris Mondzelewski : Yeah, thanks John. So let me kind of start with just a quick summarization. I think I mentioned how proud we were of that first year in our largest customer. We continue to build momentum is the best way to I guess, summarize where we are now. I’ll get into the detail of your question here in a second. I think what do I mean by that? Well, we continue to advance on a number of statistics. So if you if you look at it across the total business, we are the number for brand now in total ground bagged coffee. We are the number 8 brand overall in total. And to the point you made, there are some segments we’re not represented and that’s why it’s a lower number when you look at total coffee versus the number 1 – I’m sorry, the number 4 in total bagged.
