Unidentified Analyst: Okay. That’s helpful. Thank you. And then just a natural ingredients. I noticed that in Q2, it was down 7%. What’s driving this, is the destock there as well.
Paul Manning: Yep. Sure. There’s a fair amount of destocking in the natural ingredients business. The crop costs have been elevated for the last couple of crop cycles. This is pretty well publicized between water expense, labor, fertilizers, you name it, all the input costs have gone up. And so that has again caused some consumers to trade down in some cases. But yes, the bigger impact is, as I described.
Unidentified Analyst: Okay. That’s helpful. Thank you. And then maybe just a last question on destocking. Could you provide more color on no pun intended on which product categories and regions specifically are you seeing the destock?
Paul Manning: Okay. So specifically for color you’d like to know.
Unidentified Analyst: No, no. For across like, all the segments please.
Paul Manning: Okay. So the destocking, it’s not unlike what I was describing last quarter, right, there’s sort of a geographical dimension. And then there’s a product line dimension as well. So the most significant destocking that we see in the company is North America. We see that first out of the gate was flavors, again, because are believed higher priced item, raw material for a customer, kind of a longer, not as long of a shelf life as a color. So that was kind of the first one, as a customer looks at his most expensive raw materials, flavors would come on the list before colors. So continuing down that list, though colors would eventually be there. And so that’s kind of a phase we’re in now, but North America for food. North America for personal care has also been significant.
Next step would be Latin America, principally food. Substantially less than that would be personal care. And then Europe, there’s been destocking, but it’s not to the same magnitude as the U.S. And in fact, in some product categories, we see a little bit of return to growth. Asia Pacific, very, very limited. destocking, there’s been destocking, but it has been, I would tell you a smaller number of our customers, but just more significant actions by those customers. So in fact, they were so significant, as you could see that we’d like to think that some of those impacts will be much shorter lived than what you’re seeing in colors and flavors. And then, as you’d think — yes, and then beyond that, really just customer product categories. Things like dairy and ice cream, those destocking efforts are largely done because customers could only hold so much of that inventory anyway, so there wasn’t a whole lot to destock.
But certain other categories, certain beverages or canned foods or savory products that have a very long shelf life, customers might have accumulated a fair amount of those types of products. [Indiscernible] for things like personal care where there tends to be a lot of inventory in the system and customers may have a fair amount of that inventory. Again, given the very long shelf lives on those products. So that’s how as our product categories play out. That’s how we’re seeing that play out on the market.
Unidentified Analyst: Okay. That’s very helpful. If I can squeeze in one more, just for Q3 and the rest of the — I think you’ve given a good summary of your expectations. But in terms of this destocking, what have you heard from customers so far, just year-to-date and your expectations for the year?
