Jarrod Langhans: Yes. So they’re going to be a little different. Canada where most of the population is, I think, within 80 miles of the U.S. border and also being so close. We actually already had a co-packer in Canada that we were using as a backup for our U.S. business. So that rollout and that growth, we think, will be at a different trajectory than the UK, which we’re kind of launching from zero. So there will be investment in both markets as we build brand awareness and as we really build out the system. We won’t have the same scale and leverage advantages within the manufacturing as we do in the U.S. So there is going to be some costs and some investment there. But it will be, let’s call it, it’s not going to be a significant component of either our growth or our cost infrastructure this year. So we do believe that the numbers that we discussed on our prepared remarks, we’ll be able to help those investments as well.
John Fieldly: Yes. And I’ll just – in regards to – when you look at it, Michael, one thing we’ve noticed is the brand awareness, even though we’re not in the UK, there is underlying brand awareness just associated with the world is really so small these days and one click away. So a lot of our influencers and social media activations are actually being picked up with our potential consumers in the UK. So we had a little bit – we have more brand awareness than we actually had initially anticipated based on our research. So we are excited, things going to be a great market for us.
Michael Lavery: Okay. Great, thanks so much.
John Fieldly: Thank you.
Operator: Our next question comes from the line of Gerald Pascarelli with Wedbush Securities. Please proceed with your question.
Gerald Pascarelli: Great. Thanks very much. Good morning guys. Just one on gross margin, another quarter in the high-40s here, but in the energy category, you have already had a larger competitor take a rate increase. There is sentiment that your other larger competitors will ultimately follow suit. So, when the event this happens, how do you think about managing your price gaps relative to peers. I guess just curious on your thoughts around a potential rate increase this year as that would obviously imply upside to your high-40s margin target? Any color there would be great. Thanks.
John Fieldly: Yes. Thank you, Gerald. There is opportunities, we want to be a premium-priced product. I think if you look at it per ounce basis, we feel we are very competitively priced. There is a variety of different levers than just taking frontline pricing. So, you have – we have our pricing promotional strategies that we realize as well. We just – we are launching a new line extension as well with our Celsius Essentials 16-ounce. And then you also – you have your pricing architecture by channel as well also in pack size. So, there is ways to navigate that. I think we are very pleased with the way we finished the year with margins and we are really focused on driving share and revenue growth and continue to drive consumer consumption and ultimately, that daily consumption we are looking for.
And we are just really getting started here when you look at just now a 10 share in the energy category in convenience. So, there is a long runway ahead. But it’s something we watch closely. At this point, we are not going to make any comments on future price increases at this time.
Gerald Pascarelli: Understood. Thanks. Just one more for me, I think your non-measured channel revenue came in a little better than expected, specifically related to Amazon at least what we were modeling for with a lower seasonal quarter, your 4Q absolute revenue is almost in line with your second quarter, which obviously benefited from Prime Day. So, any incremental color on the drivers in the quarter within that channel would be helpful if you could provide any. Thank you.
John Fieldly: Yes. I mean Amazon, we had a great – in the quarter, it was a great period. And there is a lot of timing as well within shipments and how the Amazon kind of controls or feeds inventory through their warehouses based on their algorithms. So, we are going to keep shipping them. We are going to – we are number one energy drink right now, roughly about a 20 share in the energy category. I don’t really have much color than that, but we continue to drive further revenue through that channel. It is an omnichannel world, and that’s something we really focus here at Celsius. We want to deliver Celsius to consumers when they want it, how they want it.
Jarrod Langhans: I think it does show too, that there is still opportunity for continued growth within the Amazon channel. So, it’s not necessarily slowing down suddenly just because we get to a certain spot within that. So, I do see that as a continued growth opportunity for us as we look out into 2024.
Gerald Pascarelli: Got it. Thanks very much guys.
John Fieldly: Thank you.
Operator: Our next question comes from the line of Sean McGowan with ROTH Capital Partners. Please proceed with your question.
Sean McGowan: Thank you very much. A couple of quickies here, on the sales and marketing, give some good color on what you expect in the first quarter. And I think that rate of 23% is a little higher than you had talked about for some periods in the past. Is that a good number to use for the full year of ‘24?
