There’s a very high strategic fit to in a category perspective that is very complementary to our categories. It allows us to enter chocolate and reinforce our biscuit business in Mexico. One of the biggest benefits is that we can triple our route to markets, which is going to add a significant amount of stores. We will be present in 440,000 plus stores. And they also have a good growth U.S. business, which we are planning to give a boost through our U.S. organization, particularly, of course, in the U.S. Hispanic market. It’s a full integration Ricolino Clif is a partial integration. Ricolino will be a full integration and merger of our business with theirs. So there is a significant opportunity for top and cost synergies, and so that will have a big effect on margins.
Maybe I’ll leave it at that on what those two will do for us. So Luca talk a little bit about the financials.
Luca Zaramella: Yes. So I guess you were asking a little bit in terms of relative profitability of these platforms compared to the rest of Mondelez. I would say that Clif, which is almost a $1 billion platform projected into 2023 has sound gross margins at this point in time, given the fact that as we’ve said, we are about to implement another wave of pricing same dynamics that we saw in our U.S. business, little elasticity so far. So I think the P&L is going to shape up quite well. In terms of gross margin, the North American segment has the highest gross margin of Mondelez, particularly because of the DSD system that is quite effective from that standpoint. But Clif has gross margin that, albeit a little bit below the average of North America they are above the average of the company.
So that is really a sound platform in terms of potential and profitability. Importantly, there are material synergies we are after €“ we just announced a new organization in place. And clearly, there will be some testing going on the platform through DSD and I think if you see what happened with Tate’s this is quite promising potentially. In terms of Ricolino it is a $600 million, $700 million platform. It is growing double-digit at the moment. And in terms of margins, I think it’s more important to say that the combination of both platforms between our existing business and Ricolino will step change materially the profitability of Mexico. And I think particularly in route to market and cost synergies, there is a big benefit to come now. We are in the process of combining the two companies.
So the fruition into the P&L will come towards the second part of the year.
Dirk Van de Put: I think that brings us to the end. Thank you very much for your presence and for your interest in the company. Obviously, if there’s any other questions, Shep, and Philippe will be ready to answer them and looking forward to a good first quarter of the year. Thank you.
Luca Zaramella: Thank you, everyone.
Operator: Thank you, ladies and gentlemen. This does conclude today’s Mondelez International Fourth Quarter 2022 and Full Earning Year Conference Call. You may disconnect at any time, and we appreciate your participation.
