Gregory Trepp: Yes, sure. I mean the core just given the magnitude of our core business received a lot of investment in team members, new product innovation, engineering quality, making sure that our — all the things we talked about our products. We have fresh new products. We’re supporting our customers’ needs, both in brick-and-mortar and online. So that definitely receives a high portion. And if we can keep growing our market share in our business that will stay close as a percent of net sales, but should grow in raw dollar amount. I think our hope is that the premium market will see an increase in investment as things like Numilk and some of our other things we’re working on come closer to launch. And certainly, home health, the Hamilton Beach health area will not only with Health Beacon, but with other opportunities we’re considering and pursuing could come in would certainly drive some additional investment in that area.
The digital focus underpins all areas as does — and the acquisitions could be a large spike in investment when other things come along. But I think from a standpoint of thinking about maybe as a percent of net sales, we would see consistent percentage higher dollars as time goes on, on the core and then increasing premium and then a larger increasing in the HP Health.
Adam Bradley: So, it sounds like, in general, you are maybe entering a phase of more investment because you see sales and profit opportunity generally speaking, is that accurate? Now that we’re through COVID, am I hearing you correctly?
Gregory Trepp: Absolutely. I think again, we’re mindful of — we want to expand our operating profit dollars and percentage. And so really what will happen is if we can achieve our goals — both goals over time that will help support this additional investment if the Health Beacon business or the HP Health business were to be sort of turn around slower than we thought or grow slower than we think. We’re going to still invest in it, but we’re not going to pour money into it at a rate that is not supported by the results. So, I think what you hopefully will see is these investments, we will pull back or lean in as they are successful or maybe take a little more time or take off work out. There’s been some in the past that we walked away from because we tried and they didn’t work.
So, I think you’ll continue to see us pushing hard on all of these. We’re very, very optimistic on all of them, but we’re going to be very mindful of the P&L as we move forward and the impact that the investments will have.
Adam Bradley: Okay. And then finally, what are you seeing on the M&A front? Multiples in the consumer goods space have been like at or near Lowe’s over the — if you look back over a longer period, like forget COVID, but keep looking back further. So maybe there’s good opportunity out there. Can you tell us a little bit about what you’re seeing without having to be specific from just a pure acquisition standpoint? Would you do a big deal if you saw one? Would you like to do a bunch of smaller ones? Like just help a little bit with your thinking on acquisition.
Gregory Trepp: Sure. I’ll take first stab at that and Sally, you chime in, please. But I think it’s been — the flow of opportunity has actually been pretty low. It hasn’t been zero, but it’s been pretty light, much lighter than it was during COVID. And — but I think our appetite is if there’s a good opportunity to build long-term shareholder value, whether it’s small or medium, we’re very, very interested in that. So, its potential for a very large deal, some sort, but those often are hard to make those things work. But I think we are definitely open to really in all these strategic initiatives areas, additional acquisitions. I will say the Hamilton Beach Health is probably a very interesting area, number one, because we feel like there’s a lot of opportunity to grow there, but also, we found there’s a lot of times that not only from an investment standpoint of funds, but also just capabilities.
There’s a number of companies out there that are — have a really interesting position but don’t have all the capabilities that we have. And so, when we come together, it can make a pretty attractive opportunity like the Health Beacon opportunity. So, I think we’re going to be careful. We don’t want to get into something is too early, but I think we think there’s a lot of opportunity in that space as well. So, I think right now, we have our hands full with our initiatives and our programs, but we are very, very interested in analyzing anything that comes along that would support one of our initiatives.
