Adam Greenlee: Yes. Good question, Anthony. And I think there are really 2 items that probably really think about the timing and rollout of the savings associated with the $50 million program. Again, we’ll get $20 million of savings by the end of ’24. And really, if you think about it, we just announced it on the last earnings call. So those programs do need to roll out through the course of the year. So certainly, you’ll have greater savings in the back half than what you’re going to see in the first half of the year. But we have a good degree of confidence we’re going to be able to deliver those. Again, it’s sort of what we do at Silgan and focusing driving cost out of the organization. I think the other big item to think about is related to our European businesses.
And the kind of year-over-year, as Kim alluded to in her comments earlier, we’ve got this rollout of high-cost inventory in our European metals business, both in Dispensing and Specialty Closures and in Metal Containers. There will be a negative in the early part of the year, mostly in the first quarter. And between the 2 segments, it’s something like $10 million of negative impact to the P&L. And again, just — it’s that higher cost inventory rolling out through the P&L. And again, there’ll probably be some lingering into the early part of Q2, but most of that should impact the first quarter.
Anthony Pettinari: And then maybe just following up on Europe, I mean, can you talk about from an underlying demand perspective, what you’re seeing and maybe assuming for the year for your European exposure. I guess the lion’s share of that is in Dispensing and Closures and maybe you have kind of a mix of more discretionary, more kind of staples kinds of products. I’m just — how do you see the European consumer holding up and if that differs from North America?
Adam Greenlee: Yes. So maybe it’s a tale of 2 cities as far as we think about the businesses that we have. So maybe I’ll start with the European consumer. Again, as we’ve talked previously, we think it’s been a tough environment for the European consumer between inflation in food products, inflation in fuel and light and power. There’s a lot of inflation the consumer’s taken on, and they have adjusted their spending habits. So we’ve seen that in more discretionary items. Frankly, we’ve seen it in our Metal Closures business, particularly in Europe, where we are on more of a premium package with a glass package with a metal closure on the top of it. So for the food and beverage business, I think we’re seeing soft demand. We saw a soft demand for the most part in 2023.
That continues for the most part. We think there should be some improvement in the second half. We’ve taken a conservative approach to that at this point. And then you think about the balance of our dispensing products, actually, demand has remained quite resilient in the European economy for those products. And again, we’ve got some health care business. We’ve got some fragrance. Our high-value dispensers continue to do well, almost regardless of the geography and where we compete.
Operator: We’ll take our next question from Mike Roxland with Truist Securities.
Mike Roxland: Congrats for finishing the year strongly. First question I have is just on the — Adam, your comment on Dispensing Specialty Closures and the slight moderation that you’re seeing in the growth rate at the higher end, growing now low double digits, maybe high single digits instead of mid-double digits. What’s changed from your perspective? What has changed that now you’re growing at a lower rate than you had been?
Adam Greenlee: Fundamentally, nothing has changed. Again, we see a lot of the same type of opportunities for continued growth going forward. The base has obviously grown quite a bit. So the absolute dollar value of growth that we’re talking about year-over-year, you’re just claiming over a larger base every time you keep growing by a nice double-digit kind of growth rate. So nothing really beyond that, Mike. It’s a strong market for us in the high-value dispensers and we’re going to continue to see really nice growth.
Mike Roxland: So just the basis of larger, so it’s affecting the year-over-year changes on a go-forward basis. But there’s no shift in terms of demand?
Adam Greenlee: That’s the right way to think about it from our perspective.
Mike Roxland: Got it. Okay. And then just quickly on the cadence of dispensing, especially closures volumes in 2024. If I heard you guys correctly, you’re expecting volumes to be up mid-single digits in ’24. You still are calling out persistent weakness in domestic food and beverage and Metal Closures in Europe. That’s like it’s played you for a bit now. So I mean, is it fair to say that volumes will be weaker 1Q, slowly getting better in 2Q and then could be up more prominently in the back half of the year?
Adam Greenlee: Yes. I think you’ve got the cadence exactly right. And again, the destocking as it relates to Dispensing and Specialty Closures really is the kind of the ending of the food and beverage destocking activities that we’ve been talking about. So we anticipate that to be mostly a first quarter item, and we should see that inflection point, call it, late in Q2.
Mike Roxland: Got it. If I could sneak in 1 more, just real quick. Just you mentioned promotional activity starting to improve and pet food going to be a little bit later. But where are you seeing — what end categories, what markets are showing increasing promotional activity from your vantage point as we speak today?
