Robert Moskow: I guess I’m a little confused as to where the inventory is building up in terms of your portfolio? And what categories did you underestimate the volume weakness. Is it bellies? Is it protein? Is it in the freezers? Because you mentioned in your prepared remarks, a lot of products that did really, really well and you talked about strong demand. So what kind of demand were you expecting? And where did it fall short?
Jim Snee: Yes, we did also say that we had across all segments, some volume softness. So we certainly had a lot of brands and categories that did really well. We talked about Planters being off to a slower start. So that’s a part of it. And we did also talk about that period of time with our foodservice business where we had softness. And so that, too, is part of it. The foodservice piece will experience growth for the balance of the year, less concerned about that. But it’s really — I mean it’s a little bit across the part to consider is what we’re talking about with our supply chain is there’s a level of overproduction as well. And so as we’ve gotten better in our supply chain and wanted to run it more productively, more efficiently, they’ve been running hard, and we’ve built that inventory.
In some cases, that inventory is not aligned with the demand. And so that’s really our issue is it’s a little bit across the board on the product side or I’ll say the sales side. And then across on the supply chain side, this overproduction, which built the inventory.
Robert Moskow: Okay. Because if I can dig in a little, Jim, like I think six to nine months ago, the issue was labor shortages, turnover, couldn’t run the plants effectively enough to meet demand. And now they’re overproducing?
Jim Snee: Exactly. Yes. Rob, I mean that’s exactly — and I said that a little while ago, if we go back over the last three years, everything that we’ve been through and that — those different scenarios of, you’re right, not having people. And then when we were getting people, they were turning over. And now that we’re getting people, we’re keeping people. The plants are running more productively and more efficiently. And our goal is to make sure that we’re getting up to fill rates, and that we do have some production capacity. So our plants have gotten better. And like I said, in some cases, they’ve out-produced demand, and that is definitely part of the problem.
Robert Moskow: Okay. Last question on Planters. When I look at the Nielsen tracking data, the unit sales are certainly down. The volumes are down over the last 12 weeks, like 6% or 7%, but that’s been consistent for the past 52 weeks. Unit sales have been down by that amount. Were you expecting a big pickup in unit sales and total sales in the quarter on stronger marketing and Super Bowl marketing and it just didn’t play out?
Jim Snee: Yes, I think a couple of things there, Rob, and I’ll turn it over to Deanna. As we think about Planters in the short term, it is about execution, driving demand and also the mix. We’ve said this multiple times, and it just bears restating is that we did deliver on our year one commitments. We’ve maintained some stable distribution. And we’ve seen some channel shifting with the businesses as well. But the demand is certainly lower versus our expectations in Q1. And so as we’re thinking about this business now, it’s really what are we going to do in the short term from an execution perspective. And Deanna, I’ll let you add some color there.
