Tom Pigott: Yes. Todd, great question. So your assumption is correct. As we look into fiscal ’24, we really look at our top line primarily driven by volume. As you look at it by quarter, we do expect some pricing benefit to create in both businesses but modest and thereafter, we’re really driving it by volume.
Operator: And our next question will be coming from Andrew Wolf of CL King. Your line is open.
Andrew Wolf: I wanted to ask about your update on your retail sales consumption was pretty positive at 4.7%.
Dave Ciesinski: Yes.
Andrew Wolf: Obviously, there was a gap there between what you shipped at 1.7, but the prior quarter, you shipped 6.1. So it kind of seems in the commentary you had last quarter, it sounds like — you’ve put a lot of new products into the channel in the March quarter had really good sell-through, frankly, this quarter. So we’re kind of trying to model out volume into the next year, it would strike me, obviously, at some point, it equates to the retail sell-through. So is that sort of how we should think about it? Is that how you’re thinking about it? How would you sort of help us to sort of think about your volume trends sort of looking forward in the next quarter or 2 and through the full year.
Dave Ciesinski: Andrew, first of all, good morning, and second, you’re exactly right. If you look at our consumption in pounds in the quarter, they were 4.7, they accelerated over the consumption in the prior period. And you’re right, we over shipped consumption in the prior period as we were building the pipeline, so you’re precisely right. Now as we think about where this goes forward, what we’re anticipating is volume growth to continue in the low to mid-range based on what we’re seeing throughout the year. That’s the target that we’re laying out. And you might expect that to see that even marginally stronger on the front end of that. And then as we begin to lap some of this stuff later on, you might see that soften. But across the arc of the period, we’re expecting to see volumetric growth for retail in the low to mid range.
And if you look at it versus our peers that are out there, we think it puts us in the best-in-class area. What you can expect in terms of the drivers of that. As Tom pointed out, we don’t have new pricing. We have some wraparound pricing that we’re going to see in retail for the first half of the year and then no pricing plan thereafter. And this is really going to be an algorithm driven by volume through the year.
Andrew Wolf: Got it. Thank you for that. And I did want to follow up. I understand you didn’t want to give a dollar amount when Todd asked you about what Horse Cave means for kind of sales power and what have you. But can you give us a sense maybe in terms of capacity utilization? You put a lot of capital into the business and now sort of the payoff phase, where is the capacity at? It’s always a nice time to own certain stocks when the capacity utilization is going up.
Dave Ciesinski: Yes. So as you might imagine, we took a building a facility that was 225,000 square feet essentially added on another 225,000 square feet. So we doubled the size of it and the plan there was to build a facility that would allow us to run for, like I shared with Todd on the front end, 5 years, call it, plus/minus. So the utilization overall in the factories is definitely north of 50, approaching 60%. But bear in mind, when you build something that big, what you do is the boxes there. In some cases, you have the kitchens that are there, but you don’t necessarily have line started up and stuff like that. So I don’t know if I would necessarily say that’s the right way to look at it, just because it’s not like that capacity is available to run now just because we haven’t staffed it with labor.
