Operator: Thank you. Our next question comes from the line of Bill Kirk with Roth. Please proceed with your question.
Bill Kirk: Hey, just one for me, maybe for Garth. I heard the comment about $17 million higher in packaging and material costs for beer. I think that’s the lowest year-over-year increase in some time. So is that the low level of inflation you’d be expecting there going forward or is deflation on those items even possible in calendar 2024? And I guess separately it’ll probably be in the 10-Q later, but was the transportation cost line for beer, was that deflationary year-over-year in the period?
Garth Hankinson: Yeah, so as we said all year long, we would start to see benefits from easing inflation as we move through the year. And obviously we saw that in Q3. Going forward, you asked the question around whether this is at a low point or inflationary in nature. What I would say on that is we laid out a pretty good detail at our Investor Day around what the drivers are that we’re expecting over the medium term that are going to result in us getting back in our 39% to 40% percent operating margins. And that includes low single-digit inflation net of our cost savings initiatives. And obviously there’s some other offsets that can sound like depreciation, but those really are the drivers moving forward. And then logistics was a bit favorable in Q3 as well.
Operator: Thank you. Our final question will come from the line of Bill Chappell with Truist Securities. Please proceed with your question.
Bill Chappell: Hey, thanks for taking my question. Hey, just one follow-up on the acceleration of the beer in November and into December. I think I’m right in saying a year ago you had started to see a slowdown due to weather in California and the price increases had just taken, there was some elasticity. So was there more than I guess more favorable comps that you saw that drove the acceleration or is that a key part of it or were the comps maybe not as affected by weather and price increases last year as we had assumed?
Bill Newlands: Well, as you often know, lots of things go into why you see acceleration. I think you’ve pointed out some. I think weather in California was better than it was in prior year. You saw Thanksgiving being slightly earlier than it was in prior year. I think all those things are true. What I would emphasize, though, is that the takeout around our business, around Thanksgiving, was particularly strong. And our share gains that occurred during that period were as good as we saw during the entire year, which again, just speaks to the strength of the brand. There’s gives and takes all the way along in the year, as you know, from various factors that occur. But when you see that kind of share acceleration that we’ve been seeing in the sort of the 2 point range in the overall category and 3 point range in the high end, that just speaks to the continuing strength of our Beer business, irrespective of the potential gives and takes that occur naturally over the course of the year.
Operator: Thank you. We have reached the end of our question-and-answer session. I’d now like to turn the floor back over to Bill Newlands for closing remarks.
Bill Newlands: Thanks very much, and thank you all for joining today’s call. Again, we’re very pleased that our Beer business delivered strong performance in Q3 and is on track to achieve the higher end of our initial net sales and operating income guidance for the fiscal year. Our beer portfolio continues to deliver industry-leading performance, and we see a long runway of opportunities to continue to drive strong growth. In our Wine & Spirits business, we’re fully committed to realizing net sales growth and improving our operating margins in line with our medium-term outlook for that business as we leverage its reshaped, higher-end leaning portfolio and enhanced DTC and international footprint. And from a capital allocation perspective, we continue to consistently execute against our balanced and disciplined priorities, which are maintaining our investment grade balance sheet, consistently returning cash to our shareholders through our dividend, and executing opportunistic share repurchases beyond those needed to cover dilutions, while advancing our organic investments to support additional production capacity for our Beer business and deploying excess cash to smaller acquisitions that fill portfolio gaps, but with a thoughtful and prudent approach.
Altogether, we remain confident in our outlook for the full year and continue to expect our enterprise comparable EPS guidance for fiscal ’24, excluding Canopy, to remain within our previously stated range of $12.00 to $12.20. And over the medium term, we continue to expect low double-digit EPS growth as we outlined in our Investor Day. So, thanks again, everyone, for joining the call, and I wish you all a safe, happy, and prosperous new year. Thank you again for joining.
Operator: Thank you. This does conclude today’s teleconference. We appreciate your participation. You may disconnect your lines at this time. Have a great day.
