Richard Dierker: Yes. And as for 2023, if you look at the components in the gross margin bridge, they’re all switched together. But I’ll tell you, by the end of 2023, we do think that we’ve priced the dollars on inflation, okay? What you’re seeing there is negative mix, again from the first half of the year on the flawless WATERPIK vitamin businesses. We talked last quarter as an example of — in WATERPIK units were flattish to down slightly, but everyone was trading down to lower-priced units. That’s where it shows up on the gross margin bridge is a headwind. But overall, we feel really good about our pricing and what we’ve done. And if you remember, rewind the clock a little bit. We were the first to go out with laundry pricing.
We’re not a leader in that category. We were the first to go out in litter pricing because we knew it wasn’t if, but just when. And so we had the call story. We had the justification and we moved. And so we feel really good about our pricing. It’s a core competency in the company now. I would say about seven years ago, we started a pricing department, and we have people that all they do every day just look at pricing and where we should be and what we should do. And so we have all these plans in place, and we’ve had a successful selling at retail because we have transparency, and we have the facts to back it up.
Matthew Farrell: And so we’re not timid about raising prices, as you know Steve, as you just heard the what the history was with respect to when we’ve raised price. But we also have to be cognizant of what’s going on in the category, the category dynamics and our price gaps with our competition. So I think — I mean you and John are beaten on the same topic, but we’ve taken it as we think as far as we can at the moment with that because we do need cost justification to go few further. Okay. Andre.
Andrea Teixeira : Just Andrea Teixeira from JPMorgan. Just to squeeze in to Steve’s question on the pricing. And also the volume side, I guess you had a big impact on the fourth quarter and the full year, 4% for those of 20% of your businesses that were down. So I’m thinking as we think into the first half of this year, right, you’re calling for a decline in volumes. Is that mostly on that or you’re adding on a bit of elasticity in the first half of the year? It seems as if it’s opposite like the existing — the other 80% is going to grow volumes.
Richard Dierker: Yes. I would say it’s more of the same what we just experienced in Q4. All right? The 80% of the business is doing well. Volumes are up, and it’s really the drag from those other businesses that we said were going to be choppy for the first six months of 2023.
Matthew Farrell: We’ve got a mic on the side of the room.
Peter Grom: Peter Grom, UBS. So Rick, you showed the slide talking about gross margin performance over time? And then recognizing you’re expecting to have a nice bounce back year here in ’23. You’re still kind of 200 basis points or so below kind of the 2019, 2020 gross margins. And I don’t want to sit here and asking question for 2024 guidance in February of 2023. But you spoke to multiyear of opportunity on gross margin expansion. So I guess how big of a priority is that in terms of getting back to that level over time? And as you think about the cadence of the year and kind of look forward here, like how quickly can you get back to 45% gross margin.
