Mark Clouse: Yes. So I think it will be closer in Q2. I do think you might see a little bit more promotional spend in Q2 than Q1, again, all within a very reasonable range. It’s really then the back half where you start to see the significant impact of a year ago pricing. And incremental contribution from pricing would be significantly lower as we get into Q3 and Q4.
Operator: Our next question comes from the line of Michael Lavery from Piper Sandler. Your line is open.
Michael Lavery: It was — just about a year ago, you set your 17% margin target for snacks by 2025. But obviously, with just the environment being a little bit more difficult than we might have imagined then and just the margin outlook for this year and what last year looked like. Can you just give us an update of how much that might be on track or what might be needed to get there?
Mark Clouse: Yes, that’s good question. I think that — let me start with the elements of the strategy of our margin road map on snacks are very much intact. And so the ability for us to see the progress on the initiatives that we had as part of that, whether it was the original completion of the original value capture or the next wave of opportunity that we’ve seen relative to network route to market are all very much on track and in line. I will also say further to that, that the top line performance continues to be very, very strong. And as we all know, at the end of the day, on snacks, growth is really and has been the top priority for that division from the beginning. But I think the good news is all the things that we expected to be delivering, we’re delivering.
I think what we can’t predict exactly right now is how the environment will evolve over time. There’s no question that the combination of both inflation and some of the costs associated in the supply chain relative to COVID and all of the things that that we’ve been navigating over these last couple of years, how that comes off as we go forward and the environment begins to normalize. We talked in the past, if I were to kind of put a let’s call it, a rough framework around it, I think there’s probably a couple of hundred basis points of just what I would call environmental overhang that I do expect us to be able to improve by. So when I think about longer term on the business, I still remain very confident that, that margin objective and goal is in place.
I think we just need to see how the environment unfolds to put a better qualification on timing. But I think the good news is the elements that we need to see progressing, we are seeing progress.
Michael Lavery: Okay. That’s helpful. And maybe just on sauces, you also touched at the Investor Day on a potential new sauce brand either organically or M&A as part of the path to $1 billion. Is that still part of your thinking? And what — can you give any latest on how that might unfold?
Mark Clouse: Yes. I mean we continue to be very bullish on the sauces area. This is a place that, quite frankly, before COVID was growing very well and certainly has continued through the pandemic and even in this moment of economic pressure, we continue to see a very high degree of relevance in that space. And when you look at our portfolio and sauces and you say, okay, where are the opportunity areas or the white spaces? I do continue to believe that there is opportunity at different price points. And I also think that in adjacent segments, there’s opportunity as well. And I do think as you see our strategy kind of unfold over time, you’ll continue to see us both driving that base business aggressively while adding strategically kind of either small tuck-in acquisitions or some perhaps organic developed new items to complement, not unlike what we’re doing with flavor up and the re-launch of sauces, which again, very early in a different model of launching.
But at the end of the day, continuing to build out. One thing I’ll just mention that’s quite interesting in this moment where economic pressure is putting barriers to — away from home eating a little bit more. What’s been very interesting is younger consumers have been one of the bigger sources of migration back into in-home cooking as their confidence and capability through COVID was established or built. You see them returning to that area. And so our opportunity of continuing to kind of arm them with new products or also innovation as it relates to recipe usage is very much a focus of our strategy, one that’s working very well at this moment and one we would expect to continue to do both through innovation as well as the marketing side.
Operator: And your final question comes from the line of Robert Moskow from Credit Suisse. Your line is open.
Robert Moskow: I thought I remember three months ago, Mark, you’ve given guidance for a 2% headwind from promotional spending for the full year. And this quarter is — are you pushing out some of the spending into the future quarters? Or do you think the promo headwind will be less than you originally expected?
Mark Clouse: I think, Rob, certainly, in Q1, I think the — as I said, I think the execution and the growth certainly supported a lower rate than that. And I think as you look forward, I’ve not made a big adjustment to any out-quarter outlook. I think, again, as we navigate through this environment, we’re trying to make sure we stay as pragmatic as we can. And as I think about it, what are the things that we’re watching very closely, it does revolve around that consumer resilience and the continued overall value proposition. And so I haven’t changed much of the outlook for the balance of the year, but I would acknowledge Q1 certainly was better than I might have originally expected.
Robert Moskow: Okay. Can you help me understand — like what made it better, do you think? Was it that…
