Sudhanshu Priyadarshi: Yes. So regarding the share buyback, as you know, we had $4 billion worth of authorization, and it is opportunistic for us. Our number one priority in capital allocation and investment in our own business, organic and inorganic growth. Number two is maintaining the strong balance sheet, our long-term leverage target of 2 times to 2.5 times. But we keep it very dynamic in terms of how we manage quarter after quarter, year after year. So you saw us, we saw opportunistic pricing with JV secondary sales, and we purchased 38 million shares in 2024. 2023, we purchased close to 22 million shares and in 2022, we purchased 11 million shares. We still have $1.8 billion remaining on our share repurchase, but we will continue to be opportunistic when we see value in our stock price, we will go and buy back shares.
Operator: The next question comes from Andrea Teixiera with JPMorgan. Please go ahead.
Andrea Teixeira: So my question is on consumption. First on coffee, can you comment on the exit rate of pod consumption? And how should we think about the cadence of innovation you’ve had a lot of in this call in terms of that cadence in particular. And also as Alta, I understand this is beta testing so when we should expect that to conclude and to start commercializing. And for cold refreshments on the Creamy Coconut Dr Pepper, how can we pretty much eclipse with the Strawberry Cream lab and how we should be thinking about that? And if I can squeeze the marketing commentary that you had about the A&P investments, how we should be thinking in the cadence of the quarters.
Tim Cofer: Andrea, thanks. Let me make sure I can get through all these. I think first on pod shipments and consumption, as referenced, we saw sequential improvement in our pod shipment trend during Q1, and that was underpinned by better trends at POS. So we’ve seen both a modest improvement in the at-home coffee category broadly. And then as mentioned, a real acceleration in KDP’s specific volume driven by the recovering share trends to take really on owned and licensed. So feel good overall that minus 1%, near flat pod shipment performance in Q1. It’s obviously significantly above what we saw in Q4 in the back half of last year. In terms of consumption versus shipments, we’re comfortable overall with the pod inventory levels and didn’t see any unusual changes.
So it’s really consumption-driven and continuing. While not perfectly linear, I would say we expect a gradual recovery in pod volumes and consumption through the balance of the year underpinned by the initiatives that we’ve talked about already on this call. You then asked about Alta. We’re doing a beta test in the fall with limited consumer really to get the learning around what’s working, how we can optimize, et cetera. At this point, there isn’t already a predetermined path. Obviously, we have various scenarios and plans. But we’re going to take the time to learn from that and then scale it up afterwards of based on those learnings. So more specificity to come following the beta test that starts this fall. Then as it relates to CSD innovation, indeed, as I said earlier, we’re lapping in Q1 just a blockbuster number one innovation in the entire CSD category last year.
So that’s what you’re seeing in some of the share pressure. Year to go, I think we’ve got a stacked innovation plan, including with the Dr. Pepper Creamy Coconut and many of the others. Canada Dried Fruit Splash, already doing well. And we’re only at, I would say, less than half ACV. So that’s yet to ramp fully, including in some of the biggest markets. So you will see that phased more to the back half. And then was that it? Was that it? Good. Thank you, Andrea. And obviously, happy to follow up with you further the IR team or me on more questions.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jane Gelfand for any closing remarks.
Jane Gelfand: Thank you, Betsy. And thank you, everyone, for participating this morning. As Tim said, we are available all day to answer any follow-up questions and look forward to continued engagement. Thank you.
Operator: The conference is now concluded. Thank you for attending today’s presentation. You may now disconnect.
