Dustin Semach: Yes. Great question. Thank you for raising it. A couple of comments. Keep in mind that right now we are sitting in November, we talked about this limited visibility environment we are operating in. So we are still very much in our process of firming up kind of how we think about 2024. And so when we think about the Food business, the cycle, we still believe the beef cycle in general is going to the cattle cycle overall holistically continued to be a headwind. And 2024 are being more of a trough year than in prior. But keep in mind, we are still ahead of market. We gained share this year. We continue to gain share going last year into this year and going into next year. So we think gain share is going to help alleviate some of that concern.
And then in our Food business, the competitive positioning in our roll-stock portfolio, the improvements we plan to make there, we believe the combination of these, coupled with what Emile alluded to in some of our newer sustainable offerings, will be bringing to market will give us some lift in get us to low single-digit volume within our Food business. Protective, again, it is conditional based on markets beginning to move with us. And if you think about the year of 2023, the downside as you see go down, obviously, 2020 and now you’re seeing 15 and about volume in the fourth quarter, you’re going to be looking at roughly mid single-digit down, a couple of getting hit by price. But the positive news within that, and Emile had hit it a little bit earlier, is a statement about volume stabilization throughout 2023, really since the beginning of this year.
So as soon as markets begin to inflect and we are seeing that, right? And it really is going to be a statement about the strength of our fourth quarter cycle. The stronger our fourth quarter is from a seasonal perspective, we are very indicative about how we head into next year. And so that is — that’s what we are kind of [indiscernible]. Again, broadly speaking, Cost Take-Out to Grow, et cetera, that is intended to continue to improve our overall competitive positioning within Protective.
Operator: Thank you. Please stand by for our next question. Our next question comes from George Staphos from Bank of America.
George Staphos: Hi, everyone. Thanks for taking the follow-on. Just on the discussion — and again, thanks for all the detail, and again, a much cleaner presentation, I think. Can you talk broadly about within Food and within Protective, how much of your portfolio do you think right now as a percentage roughly is disadvantaged on the cost curve versus your competition? And how much would CTO2Grow and the other imperatives basically catch you up if need be in those businesses? Relatedly, some of your peers have highlighted recently, even though they’re small wins, we don’t really remember this happening in the past. Some small wins in the protein markets. Can you talk to why you think you’re gaining share even with some of these headwinds? Thanks guys and good luck in the quarter.
Dustin Semach: Yes. Thank you, George, and thank you for the commentary on the slides. So a couple of points I would make going back to Food more broadly. And I’m actually aware of what you’re referencing from who’s making comments around taking share in our business of Food. And just to be clear there, how we are performing relative to competition, how we are performing relative to the overall markets we serve, particularly the protein markets and specifically, where we have higher market share, think of this as beef as well as pork, so red meat more broadly do not see any form of competition in terms of real competitive threat within our bags business and automation solutions that we offer. We don’t see a combination of whether you look at the materials we provide or that you look at the bags themselves or you look at the automation, the equipment we provide, there is no — I would say, from my perspective, we are in a competitive advantage and continue to be and will remain in the near-term.
So going back to your point about then kind of that’s question and so when you go back and the share gains, go back from Q4, they’re coming to this year, we are very confident that they’re not just share gains in the sense of, they’re small customers that were taking over, but large customers, large plants that we are taking away from competition that will continue to yield a tailwind, which gave us the tailwind this year to perform better than market in that specific end market and will continue to give us a tailwind going into next year. So specifically about the pieces of the portfolio where we have price sensitivity, right, when you think about Food, you’re looking at probably — and this is a rough estimate, but maybe 10% to 15% of that business is specifically in the area, because when we talk about roll-stock holistically, it’s really in sub segments of that business.
There’s areas where there’s, I would say, more competitive differentiation in areas where there’s less competitive differentiation, and so those areas that are less that we’re focused on rationalizing the particular cost to produce, so we can compete at more pricing, it becomes more of a factor than the competitive differentiation of materials themselves. And then in Protective, we’ve talked about beforehand the areas of our business that tend to be more price sensitive or areas where we are not coupled with automation. And so you’re thinking about roughly 20% to 25% of that portfolio that we are focused on. And — but the good news there is, even though there’s different products than that, the overall manufacturing process, innovation processes and the cost to serve is very [indiscernible].
So when you’re — while it may sound like a larger piece of that portfolio, solving that problem in some ways is simpler because the applications are more, there’s less of them relative to the overall portfolio offering versus our roll-stock business.
Emile Chammas: Yes. And George, I would just — Dustin, said it very well. Just to add on the roll-stock part of the portfolio, also the fact that we have pigeon ourselves into very niche premium markets. And right now with the consumers downgrading to different products, we intend to open up the aperture of our roll-stock business, not just to stay in the corner market, but to go after a broader set of opportunities.
Operator: Thank you. I am showing no further questions at this time. I would now like to turn it back to Emile for closing remarks.
Emile Chammas: I would like to thank everyone for their time today. Dustin and I are excited about the opportunities ahead for SEE, and we look forward to speaking again in February. Thank you.
Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.
