Jim Salera: Okay. Thanks, guys. I’ll pass it on.
Scott Morris: Thanks.
Operator: Thank you. Our next question comes from the line of Bill Chappell with Truist Securities. Please proceed with your question.
Bill Chappell: Thanks, good morning.
Billy Cyr: Morning.
Bill Chappell: Just want to talk a little bit about kind of the, what I would say, soft landing in the second half. I mean you will have lapped most of your pricing advertising will obviously come back a little bit as you move to the second half. And so just trying to understand how volumes pick back up to make up? I mean I think you said you’re going to have you had 15 points of price benefit last year, you got 9 this year in the first half. So is it just a case of further in-stocks and added bridges versus supply constraints last year? And does that give you enough momentum so that you can – as we move into ’24, still have kind of this high or in the 20% plus type growth? Or are there other things that I need to be thinking about?
Billy Cyr: Yes. Bill, I would say that you should view this year as a year where momentum builds. So we start with all the pricing that we’ve taken, including the most recent price increase, having impacts on unit volume, pound volume. And the advertising investment that we’ve made, which is front-loaded again, starting to jump start that engine getting to growth. The fridges are going to come on, they’re going to come on at a fairly heavy rate in the first half of the year, and we’ll amplify the value of that advertising. The in-stock positions we start with being the year are pretty good. So I think it’s – the advertising is falling on very fertile ground. So we expect to see continued build as you move towards the back half of the year.
And we’d expect to see household penetration gains in the back half of the year that are much more consistent with our long-term trends than what you’re seeing. We will have, from a net sales perspective, we’ll have to lap the trade inventory refill that we did in the fourth quarter. So you won’t necessarily see it all in the net sales, but you will see it in the consumption. I don’t know if that answers the question now, but that’s the way we see it unfolding for this year.
Bill Chappell: Got it. No, we’ll stay tuned. The second question just on the competitive landscape. There have been some commentary from a competitor that – there was – I’m not quoting, lots of fridge availability at the retail side for other competitors come in. And if that’s the case, do you – I guess, one, do you have a lot more opportunity to add fridges this year? And two, if that’s not the case, can you maybe help us understand the dynamics there? Thanks.
Billy Cyr: Yes, Bill, as I said at CAGNY, I found that comment is odd as you did. The reality is we’re in 60% ACV today. If this was an easy thing to do, we have the highest productivity per linear foot or cubic foot at retail in the pet category, and we deliver the best margins. And this was an easy thing for the retailer to do. We’d be an 85% ACV today. So I found it really odd that we heard comment, but no, we’ll see what their plan is. As we all know, Walmart has invested in fridges, not many other people have. So I’m not sure what they’re thinking.
Bill Chappell: Thanks.
Operator: Thank you. Our next question comes from the line of Mark Astrachan with Stifel. Please proceed with your question.
