Mark LaVigne: Well, I think we’re seeing the categories perform in a really healthy way, Jason. I think as we’ve had negative volume trends as we did in this quarter, but we just expect them to moderate as we get through the quarters. I mean, one, you’re going to see pricing settle into the market. Last year was a very active year from a pricing standpoint that obviously has an impact on consumer behavior, you have this general macro trend that’s impacting consumer behavior. But really, I think at the end of the day, batteries in particular are an essential category to consumers, they continue to shop the category and it showed those healthy trends as we got through holiday and we expect. And also as you get through the year, Jason, you’re going to have mitigating impacts of the COVID comps as you work your way through this fiscal year, because at this this time last year, we were still having a little bit of elevated demand from COVID, not to mention some of the overall category dynamics.
Jason English: Okay, okay. Thank you.
Operator: Thank you. The next question will be from Nik Modi with RBC Capital Markets. Please go ahead.
Nik Modi: Yes, thank you. Good morning, everyone. I was hoping you can comment on inventories, but not necessarily battery inventories. I’m more worried about end market demand and inventory levels for the batteries go into. So I’m just curious kind of how you guys think about that? Have you kind of thought about that in terms of the guide and would that present any potential risk down the road?
Mark LaVigne: Are you talking in terms of the consumer inventory levels Nik?
Nik Modi: Yes, I’m talking — no I’m talking more about end market demand for controllers and TV remotes and things like that, because the retailers are obviously skinning down on inventories across the board. But I feel like there’s still a lot more that they might hold back on as it relates to some of those more discretionary items. So that’s kind of where the question is coming from. So it’s not painter inventory, it’s more retailer inventories of things that batteries go into.
Mark LaVigne: Understood. Well, I do think Nik in terms of as you worked your way through the pandemic, you saw a great deal of pull forward of consumers purchasing devices as they were stuck at home during the pandemic and gaming controllers are certainly one of them. When consumers buy devices, the great thing is that just expands the installed base that they have in their home. And 60% of the devices that consumers have in their homes take primary batteries. Those devices are still there. What’s really going to drive our consumption is going to be the usage of those devices. There is an ample installed base of devices already existing within consumer homes to more than drive our categories. What we want to make sure is one, as devices consistently, they’ll roll off in terms of usage or some devices convert into battery onboard, but you see new devices come online.
And I would say that what we’re seeing in new devices is roughly the same percentage of those devices take primary batteries. So there’s a constant replenishment in consumers’ homes for batteries. And then as they engage with those devices, as they utilize them more, then the change out frequency increases and they consume more batteries. The consumption of batteries per household is still up. We would expect that to continue. We just would expect the growth to moderate. I think we said a number of times the category is larger. Coming out of the pandemic from a growth rate standpoint, it will revert back to where it was pre-pandemic, but also is a larger base. So I would say from a device universe standpoint, from an installed base standpoint, categories as healthy as it’s been in a long time.
Nik Modi: Very helpful. Thank you. I’ll pass it on.
