Bill Newlands: Sure. So that I don’t step on myself after I just got done saying at CAGNY that I wasn’t going to talk about depletions anymore, I won’t specifically talk about March depletions other than to say they’re pretty much in line with what we expected. As I did note in my prior answer to Andrea, Texas, Florida were up double digits. Certainly, California was challenged this particular start to the year. But I think it’s safe to say that as we progress in the year, it’s extremely unusual to have rain, snow or flooding, once you get into May, June, July and August in the state of California. So much like we’ve seen many other times when there’s a dislocation of particular market, we expect that that would pass over time.
Second, related to your Oro question, we’ve said we’re going to be very sensible about the rollout of Oro. I’m pleased to say that our beer group has done an extremely good job of getting distribution into the marketplace. As you know, we’re less than a month in on that particular project. But we were very positive about the cannibalization rates that we saw in the 3 test markets. We saw incrementality above 60% in those markets, which we are very pleased with. And we really think it fills a gap, particularly with our core Hispanic consumer, who has been looking for an alternative to some of the other light beer scenarios. So, we’re very positive about that, but we’re going to do it in a very sensible and approachable way. For those of you who watched March Madness, you would have noted, we had — we started our media campaign during that particular event.
And this launch will be supported by significant media over the course of the summer.
Operator: Our next question comes from the line of Dara Mohsenian with Morgan Stanley.
Dara Mohsenian: On the beer depletion side, can you discuss a bit the trends you’re seeing on-premise? The gap looked better in terms of on-premise and some of the smaller store on track channels relative to track channels versus Q2 and Q3. So just would love to get an update there. And then, also do you think you’re seeing any broader macro impacts in your portfolio? Maybe give us a bit of update on trade down in general in beer and what’s occurring there and any impacts to your business? Thanks.
Bill Newlands: You bet. So in terms of on-premise, on-premise continues to grow, as we noted in our prepared remarks. We continue to see acceleration in the on-premise, which we think is very good. We’re not quite back to where we were from a normal standpoint that where we sat before the pandemic, but we continue to make progress against that as we are seeing more and more often that consumers are being out in the marketplace and consuming on-premise. So, we remain optimistic. Our growth profile in the on-premise really continues to accelerate. As I think many on-premise accounts are looking more and more for brands that resonate consistently with consumers. And obviously, we have those and that speaks very well. I used the example of a well saturated market like California seeing draft panels on our business were up 9% in the fourth quarter last year.
And I think that’s a great reflection of the potential that still exists for us in the on-premise. Relative to your question about trade down, we have seen very little trade down against our portfolio. Certainly, there has been some, it appears, but it tends to occur at lower price points than ours. So there are some consumers that are showing some concern about general inflationary macroeconomic trends. But by and large, that has occurred at lower price points that where our brands compete. And that’s fairly consistent with what we’ve seen relative to the pure loyalty we see against our brands. It’s the benefit of having consumer preferred brands in our portfolio.
