Max Gumport: Great. Appreciate it. And one follow-up would be on volume for fiscal 2024. You gave three reasons to believe we could see some improvement at least in the rate of decline, and we’ve touched on two of them on the call, but I was hoping to move to the capacity side regarding the constrained platforms of pet hot snacks and fruit snacks. Any way you can help us get a sense of the increase in counts that you might expect in fiscal 2024 on those platforms? Thanks.
Kofi Bruce: Yes. So, you’re right, Max. Those four platforms, we do have significant capital investment coming online. The first three, excluding exclusive of pet, you would expect to see some of that capacity impact this fiscal year. The pet capacity comes online really pretty late in the year, so we would have a very modest impact on our ability to internalize some of the supply for dry dog food.
Jeff Harmening: And Max, I would just say, beyond capacity, supply disruptions are probably the biggest tailwind for us. Last year at this time, we had significant issues on things like yogurt and bars. This year, we’re feeling much better about the way we’re performing. So, at least for North America retail, we feel really good that we’ll be able to supply all of our businesses and merchandise behind them for the first time in several years, which we feel very proud about.
Jeff Siemon: Max, maybe — this is Jeff Siemon. I’d add one on pet, Kofi is exactly right that our internal capacity comes online in about a year. But we did have some external capacity in the last couple of quarters. So, that will give us an opportunity to, and it has already given us an opportunity to improve service both on our Treats business as well as on our Dry business.
Max Gumport: Great. Thanks very much. I’ll leave it there.
Operator: Thank you. Our next question is from the line of Matthew Smith with Stifel. Please go ahead. Your line is now open.
Matthew Smith: Hi, good morning. I wanted to ask a follow-up question on the Pet business. The profit recovery there is underway, and there’s been some commentary that you expect operating profit to grow a bit faster than organic sales in fiscal 2024. Can you provide some color on the puts and takes for the margin recovery after a couple of years where we’ve seen the margin compress? I know you have incremental capacity coming online. It sounds like that’s later in the year for external supply chain costs are lower across the organization, and you have some pricing there. So what are the offsets benefiting or limiting that margin expansion in 2024?
Jeff Harmening: I would say on the benefits to margin expansion, we have some pricing that we have already taken that kind of wraps around in the current year, and you see that in the current results. You certainly saw that in the fourth quarter. You’ll also see our productivity levels in Pet are good. And the fact that our supply chain has not disrupted also helps bring down the cost. And so all of those things go to the gross margin level. Kind of what partially offsets that is the fact that we have external manufacturing and not our own internal manufacturing. And so the benefits of some of that will not be as great as they would have been otherwise. I would also say that we’re really — we — as much as we are on a focused profit recovery on Pet we really want to drive growth.
And so we will invest in marketing and capabilities to make sure that we accelerate our top line growth on that. And so we may see a little bit more gross margin expansion than we do operating margin expansion. And that’s simply because as we get healthier on supply chain, we’ll reinvest some of those savings back into driving top line growth on Pet.
