Operator: Our next question is from Eric Larson with Seaport Research.
Eric Larson: The first one, in your prepared comments about the quarter, you said that there was a lot of food coming out of Mexico, and it was of a smaller size. Did that impact pricing? Did you have — was it a bad mix of avocado sizes in the quarter 2 that hurt you? Can you give a little clarity to that?
Brian Kocher: Eric, I think it’s a really good question and insightful question. So yes, we did have more volume. Think of it this way and forgive me because I’m not an agronomist, okay, forgive me. But when you have more fruit on the tree, each individual piece of fruit gets less nutrients, right? The root systems didn’t all of a sudden grow and magically convey more nutrients. So the size curve did work against us a little bit. Smaller fruit came out because the mix was a little off, we had more large-sized fruit business than we had available large-sized fruit, and we didn’t have enough small-sized fruit business. So we certainly saw it impact the margin on the small fruit where we were really working hard to get rid of some excess small fruit. And overall, that weighed down gross profit per case. Makes sense?
Eric Larson: Yes. No, it does. But I just noticed that you had made a point of it in your comments, and I know that mix can be important. So that’s why I asked. So this one’s really for the Prepared side, and maybe I’m missing something here, but if you average $28 a carton and your avocado prices in the quarter, I mean it wasn’t that long ago, we were talking $70, $80, right? And I think you said in the last quarter sequentially, it was $43 a carton. So in your Prepared business, I mean, a novice looking at your business would say, “Wow, the — your ingredients cost for Prepared should have given you quite a bit of margin headway.” So talk to me, what am I missing in this? With the fruit prices coming down, why shouldn’t your margins have been better in Prepared?
Shawn Munsell: Yes. And your observation is spot on. So the cost of the fruit going into the guacamole business is absolutely improved, certainly versus prior year but also versus the prior — the fourth quarter. And you can see that in the gross margin that we achieved in the quarter was about 26%. And that 26%, I mean, it’s not exclusively the improvement in the fruit, but it’s also the improvement in the operations. I mean that plant is running as well as it’s ever run, given some of the investments and the changes in operations that we made last year. So 26% gross margin in the first quarter for the guacamole division. But remember, that guacamole division is about 1/5 of our total Prepared, right? So we did see the benefits, but it’s on a smaller portion of that total prepared portfolio.
Eric Larson: Right. Okay. That makes sense. For some reason, I was thinking that I’m still not quite used to thinking about you as Grown and Prepared yet. I’m still — I still think in your old format, and so that last comment made a lot of sense. So going forward, you kind of gave us some ideas of what adjusted EBITDA is going to look like and so forth. But you’ll still have those relatively easy comps for ingredients yet for your guac and you’re — but you’re taking pricing up in other areas that had a lot of elasticity is what I’m reading. Could you go into a little bit more detail on the elasticity part?
