Jim Snee: Yeah. I think in our prepared remarks, Ken, we talked about growth really being driven by foodservice and international. As I said, we expect our foodservice business to remain strong. Our current demand is very positive. Portfolio is well positioned. Our international business, we expect to bounce back and some of those headwinds moderate. The retail business, which is experiencing the biggest change in this new operating model is certainly going to have the impact of some of the feed costs that Jacinth has talked about. So consistent with what we said in the prepared remarks, we really expect the drivers of the growth to be foodservice and international.
Ken Zaslow: So when you were talking about it, and I don’t want to ask a third question, I understand that. But when you were talking about it, you were talking about the sales or the operating profit. I thought during the commentary, you were mostly talking about sales, but you will €“ you think it applies to the operating profit as well. I just want to clarify, and then I’ll leave it there.
Jim Snee: Yeah. Think about both of them that way, Ken.
Ken Zaslow: Okay. Thank you.
Jim Snee: Yep.
Ken Zaslow: Thank you very much.
Operator: Thank you. And our next question today comes from Robert Moskow with Credit Suisse. Please go ahead.
Robert Moskow: Hi. I actually have a bunch of questions here. You said that, feed costs are going to be the biggest headwind for retail in fiscal 2023. Is that because Turkey, like the majority of Turkey will be lumped into it. And just in the context of all these other retail businesses that are now catching up to margins, it just strikes me that the U.S. retail outlook is pretty soft. Like, most of your packaged food peers are catching up and exceeding last year’s gross margins, because of all the pricing they’ve taken. So, what’s different here? Is it just turkey, or are there other things? Hello?
Operator: Hello. Pardon, everyone. This is the conference operator. It looks like we’ve lost the speaker connection. I want to put music back on, and we’ll be right back with you. We ask you please hold the line. Thank you. And everyone, we thank you for your patience. We’ve reconnected the speaker location. Mr. Moskow, if you can please repeat your question sir. Thank you.
Robert Moskow: Sure. So it was a question about the guidance for retail, I guess, for profits to be flattish or maybe even down in 2023. And you said it was because of feed cost, is that because the majority of Jennie-O will end up in retail. And ex that, would you have expected retail profits to grow? Because in comparison to all these other US packaged food companies, it seems like the next 12 months is characterized by pricing catching up to cost and gross margins re-expanding?
Jim Snee: Yeah. I think the way you’re just — Rob, first of all, our apologies. Secondly, the way you’re describing it is correct and that the feed costs as you think about the value-added business, the whole bird business, a lot of the commodity business that will be flowing now into retail will be impacted by those higher feed cost as just described. So I mean absent that the rest of the business as we think about the pillars are very positive.
