Sarang Vora: Great. Great quarter guys. Great guidance as well. When you look at Rao’s as $1 billion brand. How do you think the mix of sauce versus outside the sauce categories, all these frozen pizzas stuff look like in $1 billion pie that you have? And then, my second question is the outside the sauce category at Rao’s growing very strong past several quarters. I mean, is it fair to assume that these categories will contribute almost half of the Rao’s growth in 2023? Thank you.
Todd Lachman: Sure. So Chris will hit the second point, but good talking to you. This is Todd. So sauce is about 85% of Rao’s today. We’re using rough math based on our detailed modeling techniques and just being, I would assume that we get to $1 billion. You’re talking sauce about 70%, 75%. But if you just look at that where sauce is today, where sauce will be the $1 billion. I mean, sauce is going to be still a major growth driver of our growth. And on top of that, you’ve got, as you know, we haven’t talked a lot on this call on the beachheads, which are all still doing very, very well. And I’ll emphasize the beachheads, which we talk about newer, I mean, this is the fourth year of soup. This is the third, fourth year, depending on when you use the exact start date of frozen.
Dry pasta has been in market now for almost four years. So these beachheads have been there for a while, but they’re all growing robustly. That combined amount of noosa retail sales last year ran $110 million up 45% versus prior year. So those are all ticking up. And then we’ve got pizza, which is a $6.5 billion category. I mean, a two share of frozen pizza is you can do the math. That’s a sizable business for us. And that’s what we have our sites on. And one area that I’ll talk about pizza that is important I’m sure you’ve heard other calls from some of those that are in the delivered pizza business. I mean, we’ve launched out there, as we talked about on the script, our frozen pizza could not be testing any better than it’s testing now. It’s been in test for a while with four retailers, and it is a super premium price.
It’s roughly 1299 shelf, promoted down a little bit below that. But that is significantly less today than what a delivered pie cost to your home because of the inflation, the delivery fees and everything else going on. So, you can get an absolutely delicious artisan super premium pizza made by Rao’s in the frozen sector. And we believe that’s a clear reason of what’s driving the success of that business is the fact that it’s a real value versus a home delivered pizza today. And that wasn’t necessarily the case four years ago. So, if you look at the $1 billion, you’ve got sauce being a core part of that. You’ve got the beachheads, you’ve got pizza, and then you’ve got some other elements. We’ve talked some light international opportunities for Rao’s, et cetera.
But I’ll still go back, the number one driver is sauce. Why awareness is still only 58%, albeit up 10 percentage points last year. Household penetration only up 12%, although that’s up significantly. We’re raising an uptick in the first two months of the year. Unit share only is 6%, albeit growing significantly year on year. The last point I’ll add is that we grew in every, we basically grew robustly household penetration and share in nearly every single measured geography of the United States last year. We were also the only brand in Q4 that grew across every income demographic, debt income demographic, and generational cohort versus the other top four brands. So, we are maniacally focused on growing that sauce business onward and upward. And that’s a key reason why we’ve got momentum heading into the year, and that we feel very good about the double digit top and bottom line guidance for 2023.
Sarang Vora: That’s great. I mean, can’t wait to try some new products. Good luck.
Todd Lachman: Thank you.
Chris Hall: Thank you.
Operator: Thank you. I’m showing no further questions at this time. I’ll turn the call back over to Todd Lachman for any closing remarks.
Todd Lachman: Awesome. Hey, thanks again everybody for joining us and showing interest in our story. We look forward to engaging with many of you in the coming weeks. Please feel free to reach out to Josh for follow-up discussions. Until then, have a great evening and take care.
Operator: Thank you. Ladies and gentlemen, this does conclude today’s conference. Thank you all for participating. You may now disconnect. Have a great day.
