We did exit some more late in the quarter. I wouldn’t say that’s heavily responsible for the volume decline in the second quarter. That’s more the previous rationalization we did, the disruption with the cold storage operator, et cetera, was more responsible for that. So on the foodservice side, to sum up, I would say, we’re not done yet. But it’s not like it’s going to come all at once, it will be spread out over a number of years. And it’s really about — we intend to stay in foodservice. We like the foodservice business. It’s really about exiting that lower-margin business, margining up in foodservice and, even more importantly, shifting that capacity and production to branded retail.
Connor Rattigan: All right. Great. Thanks for the color as always.
Ryals McMullian: Okay. Thank you, Connor.
Operator: Thank you. One moment for our next question. Our question comes from the line of Jim Salera with Stephens. Your line is now open.
Jim Salera: Hi, guys. Thanks for taking our question.
Ryals McMullian: Good morning.
Jim Salera: You talked in the prepared remarks about the stabilization on the branded side. Do you feel like there’s anything you can do in the near term to maybe juice that a little bit, whether it’s from an advertising standpoint or a promotional standpoint? Do you feel that there’s a way you kind of help it along to get it going — the brand is going back in the right direction and gaining share?
Ryals McMullian: Yes, good question. I’m glad somebody asked about promotions. I was hoping we get that. Yes. So to answer your question, yes, we are doing things to juice it, to use your words. So, if you look at SG&A, marketing was up in the quarter. I think that’s something you can continue to expect to see from us. We’re very committed to our marketing efforts to support these brands. I think that’s always important. From a promotional standpoint, we did promote a little bit more in the quarter. I wouldn’t call it out as anything terribly significant. I think overall, in the category, promotions were up a little bit, but still well below historic or even pre-pandemic levels. So, no significant movements there. The interesting bit that we’re seeing is that even when we do promote, the incremental units aren’t terribly attractive.
So, we have to be very selective about when we do promotions to ensure we’re getting a good return on those promotions. And there are some good ones out there to be had to be sure. But I think what that tells you is a little something else about the consumer, right? If you’re putting an item on promotion and you’re really not getting that lift that you normally see, what it tells me is the shopper is still not — they’re only buying what they need. So, it’s another indication that consumers are still trying to economize in the household. So, we’ll see how those trends continue. But I think the takeaway is the category has not gotten terribly promotional, at least not yet. And to the extent that there are promotions, we’re really not seeing that incremental lift that you might have seen in the past.
Jim Salera: Great. That’s helpful. And then maybe to drill down on kind of the balance between promotions versus marketing, because you mentioned step-up on the marketing side. Could you give a sense for which one of those drives consumer engagement, especially with the less differentiated branded products? Is it better to have a low priced [indiscernible] $0.05 less, or is it better to have 5% more airtime or visibility, so it has the brand top of mind for consumer?
