Bill Chappell: Okay. So just to follow up, I mean, is your thought that it’s greater on a normalization post-COVID, or is it elasticity? It seems like it’s more of the former, whereas pricing — I guess adjusting to pricing is more of a relative type thing. It seems like you’re more comfortable that we’re getting back to a normal consumer behavior.
Mark LaVigne: I think we are getting back to a more normal consumer behavior. It’s very difficult to parse those out. I wouldn’t want to blame some of the current trends on COVID related. I mean, you did have a long cycle of working through that, and then you had the pricing impacts from two fairly significant price increases over the last couple of years. So there was a lot there for consumers to work through, plus just the overall backdrop impact as well. So I would say you are back to more normal category patterns. As we work our way through into Q3 is when you’re really going to see that inflection point from a volume standpoint in the U.S., consumers are reacting accordingly. Your question on Rayovac. I mean, we are seeing interest in Rayovac — sort of increased interest in Rayovac.
As we’ve talked to retailers, you have seen some share gains in Rayovac as some of the more value-oriented offerings and retailers are leaning in with consumers. So there is an opportunity there, and we’ve been able to capture some of that. Obviously, we want the bulk of our business to stay at the premium end with Energizer, and that’s where it continues to be.
Bill Chappell: Great. Thanks for the color.
Mark LaVigne: Thanks, Bill.
Operator: Thank you. Our next question comes from the line of Nik Modi at RBC Capital Markets. Please go ahead. Your line is open.
Nik Modi: Thank you. Good morning, everyone. So just a couple of questions. Just wanted to clarify the non-tracked weakness that was solely the home centers like it was last quarter, right? Was there anything else –
John Drabik: It’s the majority of it.
Nik Modi: Okay. And then I guess following up on Lauren’s question, just on Project Momentum. Obviously, you’re getting some benefits out of this plant, but what else is driving the upside in the program? If you could just provide some context on that and then I have just one follow-up.
Mark LaVigne: Sure, Nik. I mean, look, Project Momentum has been an incredibly successful program for us. We launched it, and since then, the organization has really dug in and been able to just drive savings throughout the organization. Right now, if you take the $160 million to $180 million as the savings range, it breaks down to 55% roughly in sort of network distribution footprint, 15% procurement, and then 30% SG&A. Those ranges have moved around a little bit. As we’ve continued to uncover SG&A, we found additional opportunities as we’ve worked through the program, but the same has been true with the network design, with the inclusion of the new facility in Belgium. So I would say it’s very broad-based in terms of where the additional savings are coming from and it’s just been tremendous work by the organization to be able to hit $160 million to $180 million in savings over the three year period.
Nik Modi: Helpful color, Mark. And then just on the consumer, last quarter, you had much more cautionary commentary, and I’m sensing a little bit more optimism now. Am I reading that correctly? Have you seen things really improve? Are you feeling better about where the consumer is?
Mark LaVigne: I think we are. I think you are seeing improving consumer sentiment. I think you’re seeing the volume trends in our categories, both from Auto and Batteries exceed our expectations and continue to have the right trajectory. I think it’s dangerous in this environment to go two all-in in sort of one direction so I would say improving consumer sentiment. Still some caution out there, and you still need to be very choiceful in terms of how you engage and how you invest to make sure that the consumers continue to stay engaged with your categories and your products. We’re doing that. We’re doing it successfully, but it is an improving backdrop compared to what we expected back in November.
Nik Modi: Excellent. Thanks so much, Mark.
Operator: Thank you. And our next question comes from the line of Rob Ottenstein of Evercore. Please go ahead. Your line is open.
Rob Ottenstein: Great. Thank you very much. I just wanted to follow up a little bit in terms of your confidence in the second half of the year, and I think you mentioned one of the key drivers of that is the increased distribution for both Auto and Batteries. Can you give us a sense of how much of the improvement is from the increased distribution, and then more details on that increased distribution in terms of channel products, any particular color around that would be helpful. Thank you.
Mark LaVigne: Well, let me get started, Robert. I think on the sort of confidence, it really breaks down into how I laid it out before, which is improving trends across the category in track. You have nice growth potential online. You have a stabilization in non-track. So that’s kind of the foundation. And then on top of that, we have been able to gain incremental distribution in Auto Care with some of our key retailers, with some partnerships that we’re driving that you’re going to hear more about as the year progresses. And then in Batteries, we continue to push for additional distribution across our footprint, both existing retailers as well as some new retailers. That’s true in both the U.S. and international. We called out international distribution on the last call.
