John Fieldly: Yes, I’ll let Jarrod dive into some details there. But I think on a higher level, when you look at some of the expanded distribution that we’ve had, we’ve expanded into really like foodservice and some other independent locations that just historically, when the cases come through, are somewhat of a lower promotional allowance or cost of doing business in those channels, but we did see some leverage there. And there was also — we had some timing in the quarter as well. But I’ll throw that over to Jarrod to further provide additional details and answer that question.
Jarrod Langhans: Yes. So, there’s, as you said, a handful of things unpack. I’m going to start from the bottom and work my way up. But I’ll start within the kind of well, I guess, the middle of the P&L. So, if you look at G&A, we did see some really good leverage there. We benefited from some of that outsized top line growth relative to the spend we have. As we look out into 2024, we — on a nine-month basis, I believe our G&A is about 7.9%. I think we were pegging roughly 8% for the year, so we did track a little bit better in Q3. Probably where we land on a full-year basis next year, obviously, this year, it will be somewhere in between those two, but next year would be kind of in between there. Is it going to be in that 7% to 8% range on a full-year basis in ’24, where we’ll see some leverage come through?
But good leverage coming through on the G&A line. I think a lot of that is sustainable. There’s probably a little bit as we continue to build out our teams that we’ll give back as we continue to scale and really try to set our business up. There’s also some international expansion we’ve been talking about and things like that, where there will be some investment upfront that will drive some costs. And so, you won’t see the full leverage but we will see good leverage in the G&A line. On the sales and marketing line, we’ve been averaging kind of that 19% to 20%. This year, historically, we’ve probably been in the 22% to 24%. So, we’ve seen a bit of leverage there. As we look out into next year, we don’t think that the competition is going to get any easier, so we will continue to invest into the market and look to continue.
We don’t have exact numbers. We do have our budget, but we don’t really give out specific numbers along the way, especially since we don’t give the sales guidance out. But we would look to continue to invest into the business and really drive the growth of the business, but we have seen some leverage there throughout the year. If you go up to the gross profit line, we did just talk about that where after Q1, you saw the benefits of really the improvements you’ve seen in commodities across the board, across both us and our competition. Also, we had rolled off of the international cans whereas in Q1, we had international cans still on the system. By the time we got to Q2, it was a clean view. And so, we’ve really seen some benefits come through the raw materials.
And also, you’ve seen really the benefits of the freight lanes that were established. I think we were running about, on a year-to-date basis, 4.9%, whereas last year, it was 5.9%, so we got 100 basis points just out of running better from a freight lane perspective. And actually, if you look to Q3 and Q2, it’s been a little bit better than that number. So, we’ve seen kind of benefits on each line along the way really driving that EBITDA margin across the year.
Michael Lavery: That’s helpful. Could I just also follow up on the Canada launch? And I know you said it’s in the first quarter. Should we expect pipeline fill for that in 4Q or would it be a little bit later in the first quarter? I guess the follow-up is really kind of 4Q minded. Maybe one, is there a Canada impact we should keep in mind? And then maybe any color on how it’s looking quarter-to-date that you can give us?
