Pamela Kaufman: Thanks. And my second question is just around the promotional environment and your outlook for promotions and brand building. How are you thinking about reinvestment levels in fiscal 2024? And any color on the mix between price promotions versus marketing and advertising? Thanks.
JeffHarmening: Yes, I would say on the — as we look ahead to our marketing and our — the promotion environment, the first thing I would say is really important to remember that we still have inflation. I mean, there have been a lot of — a lot of commentary about disinflation or going negative, but we don’t actually see that. And it’s driven by labor cost inflating. So I think that’s the first and most important thing to remember as it relates to the promotion environment. We would expect that promotional frequency would increase a little bit and importantly, the quality of our merchandising, especially display merchandising, will improve. And the reason we think that will improve is that retailers have more confidence that we’ll be able to supply the business because our service levels are back in the 1990s.
And when that happens, they’re more confident in displaying, display merchandising for us has very high rates. And so — and it does for a retailer as well. So we’re kind of aligned and wanting to do that. And now we feel as if we can. And so as I look ahead, I’m not sure the promotion intensity is really going to increase that much. I think it’s going to be maybe a little bit of frequency and actually more quality, if you will, merchandising levels. As it relates to marketing, we really like our marketing across our biggest categories, and that’s why we’ve been investing in it. And we’ll continue to invest in it. I’m not going to lay out a number of our marketing will improve x-percent, but what we have said is long-term, our marketing spend will grow in line with our — in line with our sales growth.
And over the past few years, our marketing is actually up 35% versus pre-pandemic levels. So we’ve actually done that benefit us in this year ahead because, what I can tell you is that consumers in this environment and customers, they’re all looking for new ideas and ways and our customers are looking for ways to grow. And so we feel good about our marketing spend in the year ahead.
Pamela Kaufman: Thank you.
Operator: Thank you. Our next question is from the line of David Palmer of Evercore ISI. Please go ahead. Your line is open now.
David Palmer: Thanks. Good morning. As you were setting your guidance for fiscal 2024, what was the — what were the biggest challenges to visibility or variables that you’re thinking about for this year? Is it simply North America retail consumer demand or other factors?
Kofi Bruce: Yes. That’s certainly the state of the consumer, the interaction of frankly all of the, interest rate environment and the expectation of potential economic slowdown on consumer behavior is certainly variable that’s a very front and center for us as we set the guidance. Obviously, inflation remains at least sticky and above expectations. And I think the challenge of setting expectations is an environment that any one of those and visibility any one of those factors is hard not the interaction gives us sort of the challenge of setting the frame for the year. But we’re confident that kind of whatever operating environment actually shows up, that we will be able to respond and pivot as needed.
David Palmer: Yes. I wonder, how you were thinking about that North America consumer demand, given the industry has been slowing on a multiyear basis right through the last month or so. And I’m just wondering if you’re assuming that, that recent rate, I mean, we hesitate to use four-week data to project anything else, but I also hesitate to use even 12-week when the multiyear has been breaking down for the industry. So I’m wondering how you assume that multiyear trend in how you about that demand in 2024 given the slowing in the industry on the consumer lately?
