John Fieldly: Yes, I think we haven’t spoken about April being weaker. I think Jarrod was talking about maintaining inventory levels, with our partners maintaining as we enter the second quarter. And we’re going to have to see how this plays — how the quarter unfolds. I think that with optimizing inventories, we’re getting more efficient. We’re able to ship product and in less number of days. Prior, we run in 14 days. And now, in many cases, we’re shipping within seven. So, we’re just finding further ways to optimize our supply chain, so that’s going to impact some of our — some of the revenue recognition standards as we continue to progress forward. But I think the most important thing to really look at is what’s taking place within the scanner data for the end user and the end customer, which continues to maintain — it seems to be extremely strong.
And we got good momentum heading in, especially the 100 Days of Summer, double the sales staff, great, refreshing innovation, and a bunch of great marketing assets and activities. I don’t know, Jarrod, if any more color you want to add on that.
Jarrod Langhans: I’m aligned with you. I think we’re in good shape. We haven’t seen any service issues as they optimize their system, as long as they’re getting product on the shelf, that’s, that’s what we’re most concerned with.
Mark Astrachan: All right. Thank you.
Jarrod Langhans: Thank you.
Operator: Our next question comes from Jeff Van Sinderen from B. Riley. Your line is now open.
Jeff Van Sinderen: Hi, good morning, everyone. I wanted to circle back to a comment you made on markets where you’re getting close to a 15% market share. Maybe any more color you can add on that. I guess what specifically you’ve done in those markets to achieve that and plans to apply those initiatives to other markets.
John Fieldly: Yes, Jeff, great question. It’s really exciting that now we’re in 12 markets, major metropolitan markets in the U.S. right now that are over a 15 share. And then, we have several additional markets that are getting close to that range. So, what we’re seeing is just really the further collaboration with our Pepsi partners, further building out our sales team and marketing teams and really using our methodological approach to marketing and activation, which has worked well. It’s activating the consumer where they live, work and play, disrupting the path to purchase, building that awareness, getting that trial. And we have such great flavors and a great product and a great brand that we build that loyal consumer. And we’re seeing our Celsius consumers further increasing their consumption levels as we’ve further built out our availability.
We’re seeing category growth or driving category growth, about 47% of the category growth is coming from new to category and Celsius is creating that, so really exciting. It’s really about gaining that additional distribution and really closing the gap with inconvenience. And we’ve talked about that for many years and we’ve done well in large format and online and with gyms and health clubs. And now really next phase is really closing the gap and convenience and getting better placement. You’re seeing the share numbers start to increase there.
Jeff Van Sinderen: Okay, great. And then, I just wanted to circle back to spring resets as well. Maybe you could just speak a little bit more about where you’re seeing the most significant gains, maybe touch on that in terms of skews, spacings, quality of shelf locations, that sort of thing.
John Fieldly: Yes, I think when you look at the resets, we’re really excited. It’s going to be convenience is a big the biggest opportunity. So, we’re expecting some pretty good growth within the convenience channel, as well as our existing accounts. As an example, in Publix, we just moved over from the HBC to the energy category and the energy set. And we’ve gained further placement in front checkout coolers. We’re working with several other retailers; more to come on that, we expect full resets to be done by the end of June, but really looking to gain further placements in all accounts. This key accounts team has been extremely positive this year.
Jeff Van Sinderen: Okay, great. And then, just as a follow up to that, as far as the coolers go, what are the plans for coolers this year? And also, is there an opportunity to get into a lot more coolers that are maybe not Celsius coolers at this point?
John Fieldly: Yes, I think that’s a huge opportunity, and that’s really partnering with PEP Energy and working really closely with our Pepsi partner, gaining more distribution and availability and cold placements. Our key accounts team is working on branded Celsius coolers. That’s a big initiative. We’re not going to put a number out, but there’s a substantial number we’re looking to place. And in regards to the first quarter, I think the team’s placed almost 3,000 coolers, but lots of opportunities with coolers. We expect to really continue the momentum as we go forward.
Jeff Van Sinderen: Okay. Thanks for taking my questions and continued success.
John Fieldly: Thank you, Jeff.
Operator: The next question comes from Jonathan Keypour from Bank of America. Your line is now open.
Jonathan Keypour: Hey, everybody. Good morning. Sorry. And thanks for the question. I’ve got a couple on margins and then a couple on sales. I guess on margins, just looking at the chart on aluminum, I think it’s up pretty meaningfully year-over-year. Can you guys give us any kind of magnitude of COGS exposure to aluminum? And I guess a sense of timing about maybe where those higher costs will flow through.
John Fieldly: Yes, Jonathan, I’ll turn it over to Jarrod.
Jarrod Langhans: Yes. So, a couple of things, let me jump on an inventory question that was asked just to clarify. When I was talking about April, I was talking about days on hand is consistent from March into April. So, that wasn’t a knock on what we’re seeing. In April, as we continue to see our resets happen, we’re doing very well and you can see the consumer data. We continue to get more skews. We continue to get more space, et cetera. So, just a clarity there. That was more of a days on hand comment more than anything. In terms of the aluminum, you’re seeing some fuel costs go up. We have locked in a lot of our aluminum pricing. So, we were in pretty good shape there. So, we tend to lock that in around Q4 of every year.
