Gerald Pascarelli : Great. Thank you, very much, good morning. I just had a question on Pepsi’s current inventory levels. You’ve been in the system for a little over a year now. It looks like you built inventory in 3Q. Just some color on what you expect to happen with these inventory levels in the fourth quarter as we approach a low seasonality quarter ahead of winter. Do you expect any changes in their number of days on hand? Or is there nothing to suggest that there will be any incremental changes in their current inventory levels?
John Fieldly: Yes. Gerald, that’s a great question. And we’re in really cycling our first full year with them with PepsiCo selling their first case in October. But I’ll turn that question over to Jarrod.
Jarrod Langhans: Yes. Good morning. As we look last year, it was difficult to really kind of peg whether inventories were pulled down or it was just a matter of seasonality. As we look now, we do have some innovation that we filled the pipeline with so we are ready from that perspective. But at the end of the day, the Pepsi team would have to determine if they’re going to do any kind of management around the inventory as they’re going into Q1. I will say we are excited as we move into 2024, but there’s no guarantees in terms of the inventory management from that perspective.
Gerald Pascarelli : Understood. Thank you. Next question is just on gross margin. Obviously, it looks like you’re going to end the year in the high 40s. Jarrod, I know you’ve previously referenced a mid-to high 40s kind of medium-term outlook. Does this outperformance that we’ve seen in the last two quarters maybe change your medium-term outlook on how to think about gross margin? Or do you still expect it to remain volatile, given that focus is to continue to gain market share and stretch rate if you need to, in certain instances? Any color there would be great.
Jarrod Langhans: Yes. I think as things stand today, knock on wood, from a raw material perspective, we have captured a lot of savings this year, and so that’s been pretty consistent for the last few quarters. We have also maintained our outbound freight number for the last few quarters. Obviously, we know that fuel costs can spike at any point in time. That can cause some pain down the road. So, I don’t know that I’m ready to call the fuel or the outbound freight line as a lock. We are pretty comfortable where commodities stand today with what we’ve seen from a raw material perspective. So, I think our raw material costs in kind of Q2 and Q3 should remain steady as we go into 2024. There is still that freight line, though, that could cause some fluctuations.
I think the operations team did a fantastic job this year in really cleaning up the scrap and any kind of waste, really have done a great job with the aged inventory, really did a great job really tightening up the cost of raw materials. And they’ve really managed the freight lanes, especially the last two quarters superbly. So, hats off to those guys for that. And our goal is to keep it up. Not sure how much more we can squeeze out of where we were going into ’24. We’ll definitely shoot for it but there’s no guarantees, but we are really in great shape as we’re moving into ’24.
Operator: Our next question comes from the line of Vivien Azer with TD Cowen. Please proceed with your question.
Vivien Azer : Hi, thank you. Good morning. Earlier in the Q&A, you commented on the importance of resets as one of the factors to drive continued growth and leverage the Pepsi relationship. Last quarter, you commented that the conversations were early into 2024, and you talked about a couple of different categories where energy might be sourcing share. I was hoping you could just provide an update on your conversations with key retailers around shelf resets for ’24.
