Peter Galbo: Great. Thanks, Mark.
Operator: Your next question comes from the line of Robert Moskow from Credit Suisse. Your line is open.
Robert Moskow: Hi, thank you. I was hoping two things.
Mark Clouse: Hi, Rob.
Robert Moskow: Hi, there. Can you quantify how much foodservice helped the company in terms of the growth rate and also, specifically, the meals division? I used the Nielsen data here and your results today are much better than the Nielsen data, so good news there. And then secondly, on snacks, your slide that shows the market share gains versus year ago, last year, you had significant market share losses from supply chain issues. Can you give us — can you quantify what your market share is in salty snacks, for example, on a two-year basis? Are you still below where you were two years ago? And maybe talk about what the upside there is and how you can chase after it?
Mark Clouse: Yeah. Great question, Rob. Let me take the first one first. So you’re right, foodservice had another very strong quarter. It now represents about 10% of our Meals & Beverages business, and it was up 34%. So when you think about the five-point delta of net sales being up 11% and consumption being up 6%, there’s a good chunk — actually, majority of that is coming from foodservice. Although, I will say, also in that number, is some very strong performance from Canada. Canada has been a business that in the world of supply chain was suffering a bit with foodservice as we were prioritizing different parts of the business. Now that we’re back into full supply, you see a much healthier Canadian business. That team has done an extraordinary job navigating a difficult market, but really bringing back the brands and growing the business.
In fact, Canada was up 16% in the quarter. And that’s not insignificant either. That’s probably just under — between 7% or 8% of the Meals & Beverages business. So yet another contributor to that difference between 11% and 6%. So it is great. And look, those are trends, as we’ve said, we would expect to continue to be tailwinds probably or will not be at the magnitude that we’ve seen in the last couple of quarters but continuing to be a positive influence. Here’s an interesting little tidbit on soup as well. As you might imagine, a big part of our foodservice business is soup. And it’s interesting as we start to look at the entire world of soup. But if you look at our underlying growth on soup in the second quarter, it would have added two points of growth to the total franchise of soup based on the performance of foodservice.
So those are all good I think, supporting elements within our Meals & Beverage business. And like I said, I think those are things that will continue to help us as we move forward. As far as the snacks trends, what I would tell you, Rob, is it’s a bit of a mixed bag, right? So there — you’re absolutely right. There were places where we were struggling a year ago on certain parts of the business and market share primarily as it related to supply chain. So certainly, late July, Lance, there were a few other places, but we’ve come back at an equitable level of strength. I think what we’ll do is I can give you the blow by blow by brand but we’ll do that — we can do that after the call. But I think the net of it is, if you take where we are holistically from where we started the journey, we feel really good about the share gains — cumulative share gains that we’ve had over time.
So although, yes, we would expect strong rebound. But I will say in snacking, part of what you always worry about is it’s such a dynamic aisle. And with DSD, if you’re not there, someone else is. And so when you come back into the section, I think we all hold our breath a little bit to make sure that the consumers immediately come back. And the great news is on those two brands in particular, they absolutely came back. And that just, again, I think, gives you a little confidence in it. So I think the net of all of it is, yes, certainly, a tailwind on supply chain. But overall, trends on the business and the strength of what we’re seeing from a marketing and innovation side are giving us more confidence of this being more sustainable over time.
I mean, I’m not telling you that we’re going to see 15% growth in the perpetuity, but I do think that ability to grow above the category, which is really what we aspire to do, I continue to feel more confident than ever that we can do that.
Robert Moskow : Thank you.
Operator: Your next question comes from the line
Rebecca Gardy: Sorry. I think we’re out of time right now, really appreciate everyone’s questions and participation on the call.
Mark Clouse: Yep. Thanks, everybody. We’ll talk to many of you later. If you have questions, please follow-up. But thank you.
Rebecca Gardy: Thank you so much.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
