Steve Powers: Okay. Great. And maybe shifting gears a bit. Just want to ask around how you’re thinking about elasticity. I know in the in what you put out this morning, you talked about expectations for little change in elasticity through the end of fiscal ’23. I guess just maybe a little bit more on the puts and takes you’re seeing there? And what I’m really curious about is, how you think all of different accelerate strategy points of focus — may help your portfolio hold up to the extent that we see more broad-based consumer slowing over the course of the calendar year. Just how you’re thinking about those dynamics and your specific positioning should the consumer weaken as we progress forward?
Jeff Harmening: Let me take that at a top level, and then I’ll probably pass it to Jon — maybe give a couple of examples about NAR. Yes, I would say for the rest of our fiscal year, I mean, we’re seeing little change in elasticities. And we have seen consumption of food at home remains stable over this past year despite all the volatility and puts and takes and theories. I mean the consumer seems to be reasonably robust. And at the same time, they’re eating at home more than they were during pre-pandemic. And so, we see a continuation of that. I will say there are a couple of things. One private label exposure in our categories around the world is lower than what you see on the average. And I think that’s a benefit to us. The other thing is that we’ve been investing.
We’ve been investing in marketing. And so you see, over the last four years, our compound annual rate of growth and marketing spending is up, I think, about 4% or 5%. And if you look at this year, our marketing spending is double digits. And so, it’s not an accident that our brands — we had strong brands to begin with, but we also know that brands are kind of organic in nature, if you will, and that you need to keep them growing. And so, we’ve invested in marketing spending as well as capabilities. And we continue to do that through the third quarter of this year. And so is not really an accident that private label is lower in our categories, and I think it pretends well for our future because even during the last recession, what we found is that even though private label gained a little share back in 2008 to 2010, we were able to hold — we were able to hold market share due to our brands, thanks and our investments in consumer spending.
But Jon, do you want to talk a little bit about NAR.
Jon Nudi: Yes. So just building on what Jeff talked about. So as part of Accelerate, and Jeff touched on this, capabilities is something that we’re very focused on. And one of those capabilities is strategic revenue management. So we’ve probably been at that one the longest five or six years now and feel really good about the capabilities that we’ve built. So we leverage the entire toolbox. So obviously, with the inflation we’ve seen this past year, we’ve taken list price increases, focus on a lot on promotional optimization. So if you look at what’s happening in the market, frequencies coming back from a trade standpoint as we get healthier from a service standpoint, but price points were up double digits across our categories.
And again, getting smart about how we look at pricing, not only at list price but also from a promotional standpoint as well. We look at price architecture and mix as well. So we are much more sophisticated today than we were even a few years ago. And I think that’s helping us to make the right moves in market, which is helping with the elasticities as well. So it’s something we’ll stay focused on. And as Jeff mentioned, if we do run into a recessionary period, historically, we’ve held up pretty well. Obviously, private label does well during that period. But we’ve held our own and hold share relatively flat. It’s really the third and fourth tier players in categories that seem to get hit the hardest from a share staple.
