Bill Chappell: And Rob, welcome back. Maybe I should be a little concerned you’re throwing out emojis and quoting the tenure. So quickly, but that means you’re fully back in the chair. Two questions. One, I guess just help us understand on kind of U.S. consumer volumes and even Weetabix for that matter, and it’s not just you obviously, it’s the whole kind of packaged food industry. So what do you think changes the volume growth to actually growth again as we move through this year? And do you — does post need to step up advertising, marketing, promotions to kind of get things going because the industry need to, or will it just naturally start to stabilize?
Robert Vitale: I think we’re more of the latter camp, because part of it is lapping SNAP, part of it is lapping student loan resumption, so you’ve got some exogenous variables that are impacting the volume trends. And then I think getting the enough time past the fairly rapid run-up in inflation to allow for that psychological resignation to the new price level. So I don’t think it’s a major change in behavior from our perspective, it’s more allowing time to cure some of it.
Bill Chappell: Got it. So you don’t see the promotional level stepping up even from your peers, the material or other packaged goods categories?
Robert Vitale: We’re seeing fairly normal, what we would consider pre-pandemic levels of promotion. So there will be pockets of time, as has been the case all through history, that some of our competitors will promote more in certain periods of time than others. But as a general rule, we’re not seeing in cereal the promotional landscape being fundamentally different than what it has been historically.
Bill Chappell: That’s great. And then, as a follow-up, making sure I understand the profit on pet. So is the thought that, again, in what you’ve beat the quarter and then what you raised the guidance, it’s just trying to understand, are you thinking the timing of advertising is just, and merchandising and marketing behind these brands is a little longer, or is the actual spend maybe not as high as you thought it would need to be to kind of get the growth that you’re looking for?
Robert Vitale: Well, we’re not sure yet. I think the timing is certainly delayed a bit. And the spend, I don’t mean to be glib, but it could mean anything from lower, same to higher depending on the results of the spend. So we’ve got the luxury because of the incremental volume over our base case to make some strategic decisions about where we want to invest. Part of it is also in some manufacturing insourcing that is actually going to be in the short-term margin dilutive, because we’re changing some contract packaging, contract manufacturing relationships, bringing them in-house, and we’re going to have to invest a bit behind that. Ultimately, that will be margin accretive, but it’ll take a little bit of time to get there.
Speaker: Great. Thanks so much.
Robert Vitale: Thank you.
Operator: Thank you. Thank you. One moment for our next question. Our next question comes from the line of Marc Torrente from Wells Fargo Securities, LLC.
Marc Torrente: Hey, good morning. Thank you for the question. And Rob, welcome back to our team as well.
Robert Vitale: Thank you.
Marc Torrente: On shake manufacturing, the facility came online during the quarter with first shipments of BellRing in January. How is the ramp initially looking? When would you expect to get to that sort of $20 million EBITDA run rate level? Is that sort of the target exiting fiscal ’24?
Robert Vitale: It is the target exiting Fiscal ’24, but I think we’ve had some startup costs and startup learning curve issues that push us from the full fourth quarter being a run rate to more like last month or two of the year being the run rate. So we’re probably, call it 60 days behind where we expected to be at this time. I think there will be some benefits to this learning curve as we have closer proximity to some of the issues with Tetra and position ourselves ready to expand going forward, but it has been a bit slower than we expected it to be.
Marc Torrente: Okay, great. And then on Deeside, small acquisition, but I guess somewhat meaningful to the Weetabix segment. How should we think about the contribution and margin profile relative to the segment? And is this the type of deal that you’re looking for more near term?
Robert Vitale: The Deeside was very, very small. It basically gave us some factory capacity that we need for some specific product in the UK. Small private label business, will be essentially margin neutral or profit neutral in 2024 and then contribute a handful of million pounds in 2025, but very small.
Marc Torrente: Okay, great. Thanks again.
Operator: Thank you. There are no further questions at this time. Thank you for joining us today. You may disconnect.
Robert Vitale: Thank you.