Q – Robert Dickerson: Okay. Super. And then I guess just one quick follow-up is kind of pertaining, I guess, to Mr. Palmer’s question earlier, just on the North America cereal profitability, that you provided us in Form 10. Is there anything kind of inherent within those profitability margins that could have been, let’s say, kind of weighing on profitability potential again, more broadly speaking, relative to maybe what could come?
A – AmitBanati: Yes. We’ll talk it in context next week. And I think we’ll talk about the history as well as the go-forward plans, suffice to say that we’ve been through fire and in strike and that had an impact on the margin. So, I think maybe we’ll have a fuller conversation on that next week.
Q – Robert Dickerson: Fair enough. Thanks a lot.
Operator: Thank you. Our next question comes from Michael Lavery of Piper Sandler. Your line is now open. Please go ahead.
Q – MichaelLavery: Thank you. Good morning. Just wanted to understand a couple of things on volumes. You’ve walked through the sales growth split by category and ways that would add up to W.K. Kellogg and Kellanova. But can you give how the volume split would have looked for each of those on a company NewCo basis for the second quarter?
A – JohnRenwick: We haven’t .Yes, we haven’t split it out.
A – SteveCahillane: We haven’t split that, Michael. Next week, we will — I mean, you’re going to get a lot of detail next week about what it looks like and what our forecasts are going forward. But in terms of category splits on volume, it’s not a level of detail that we’ve provided.
Q – Michael Lavery: Okay. And just on emerging markets, obviously, you had the serial comp, the restocking and a lot of things in the US and some different dynamics in developed markets. But EMEA volumes were also down that they had — they were down a bit last year. What would be necessary to see better volume growth there? That’s usually kind of historically where you would expect it is emerging markets. And so, can you just give us a sense of maybe what some of the pressure is there? Is it just macro? I know you mentioned the launch — the expansion into places like South Africa, but how does that look going ahead? Should — is that pressure likely to remain? When does it pick up? How do we think about that?
A – AmitBanati: Yes. I think we’ve seen elasticities rising in the quarter, right? We had expected that. We had focused that, and this quarter, in quarter two, we saw that. And I think we saw it in talking on EMEA or Latin America. In Latin America, we saw it in our cereal business, our cookies and crackers business in Brazil. We also did some rationalization of low-margin SKUs as part of our revenue growth management. So you’re seeing that come through in the quarter. And I think it’s really elasticities given the pricing that we’ve taken, and we talked a little bit about currency in Nigeria, where we’ve had to price not just for commodities, but also currency. So you’re seeing the elasticities come through. I think going forward, from a lever standpoint, I think Steve talked about we’ve got — we’re excited about the commercial plan that we have in the second half. And I think as you start lapping the pricing, there’ll be more balance between volume and price mix.
Q – Michael Lavery: Okay. Thanks so much.
Operator: Thank you. Our next question comes from Matt Smith of Stifel. Your line is now open. Please go ahead.
Q – Matt Smith: Hey, good morning. Thanks for taking my question. I want to follow-up on the commentary about the consumer environment and the category dynamics we’re seeing where some categories we’re seeing clearly a softer elasticity response lately. When you think about your promotional spending going forward, are there categories where you expect that to pick up in relation to where it was on a pre-pandemic basis, I’m thinking here, if you’re approaching the cereal category differently than you are the snacking category, given the volume slowdown we’ve seen that seems to be more evident in cereal relative to the snacking categories where elasticities have been more stable overall?
A – Steve Cahillane: Yes. I think a couple of things. First, it’s a bit of a tough comparison when you think about in North America cereal versus our snacks business because our cereal is obviously coming out of a very depressed environment because of the fire and the strike, really no promotional activity, no merchandising activity, and so we’ve got a ways to go to get back to where it was on a pre-pandemic basis, but we have every confidence that we’re moving in that direction — as our supply chain is working. I mean, it’s working really at a pre-pandemic level in cereal, which is terrific. I already mentioned the replenishment of SKUs, the growth of distribution points and ACV. So we see that really moving in the right direction.
