Brian Kocher: Yes. I think that’s absolutely true that they have been a little bit more conservative. And as we – we may – I think we answered this in one of the earlier questions, that’s why also if tracked channels returns to sort of growing, we believe that would be upside to our outlook for 2024. So, we base some of our overall forecasts for ‘24 on the feedback directly from customers that they were being a little bit more conservative than the tracked channel arena.
Brian Holland: Appreciate it. That’s very helpful. Last one for me. We talk a lot about new business development. But I think one of the more underappreciated components of the growth story here over the last few years has been the innovation pipeline, which I think has sort of come to fruition in a number of forms. Where does that stand today? I don’t know to the extent you can actually talk about specific products, I appreciate some things that maybe haven’t been unveiled that you can’t talk about. But just understanding how actively we are managing the product innovation pipeline. And to what extent is that proving to be a lever that you are using to either gain more business from existing customers or help penetrate new customers?
Brian Kocher: Yes, Brian, it’s a great question and let me just try to kind of simply talk about that a little bit. If you look at the growth that we had in Q4, basically almost $22 million worth of revenue growth from Q4 ‘22 to Q4 of ‘23, that really was split almost equally between TAM expansion, share growth with existing customers and the acquisition of new customers. Now, some of the acquisition of the new customers were also coinciding with new products and new product launches. So, as I – so it’s a real key contributor to our growth platform. As I have mentioned earlier in the call, we are at various – every day, we are at various stages in the new product development and sort of the new business development pipeline with customers.
And sometimes, we are at multiple stage or different stages in multiple projects with the same customer. So, we will continue to try to make sure on our regular updates that we update you on the progress. But what I think you will see is you will see that product roll into the financials, and that’s the best way to see it work and the best way to see the impact that it’s had on the organization.
Operator: Your next question comes from the line of Jon Andersen with William Blair. Your line is open.
Jon Andersen: Hey everybody. Joe, it’s been fun to get to know you and best wishes as you go forward. Let’s see. Most of my questions have been asked. I guess there was a reference in the prepared comments to the longer term EBITDA goal of $125 million. And I think it was kind of portrayed that you are comfortable that you can achieve that by ‘25 or early ‘26. Am I right to think that’s a bit of a pull forward from how you talked about that previously? And where is that kind of incremental confidence coming from?
Greg Gaba: Jon, let me just make sure we clarify. I would say we are affirming that we can be at a $125 million annual run rate at sort of the end of ‘25, beginning of ‘26.
Jon Andersen: Great. That’s helpful. Thank you.
Greg Gaba: And that is what we have said in the Q3 conference and the investor conferences that we have been to-date. So, I think it’s very consistent.
Jon Andersen: Okay. And then can you remind me, Line 3 in Midlothian what that line is going to be producing? And then if – I guess if the protein shake line is going to be at run rate production levels by the end of the second quarter, are there plans to add additional capacity in terms of TAM expansion, just given how strong that category has been, as you referenced in the prepared comments as well?
Brian Kocher: Sure. Yes. Line 3 – just specifically, Line 3 is focused on plant-based milks. And I think our next best opportunity, again, we will be at the run rate – we are on track to be at the run rate that we expect to be in Midlothian in sort of the middle of the year. I do think there is further opportunity to drive productivity and unleash some trough capacity right now. So, I would think the next step we do is continue to drive productivity and efficiency in those lines and create capacity in that manner.
Jon Andersen: Okay. That makes sense. Maybe one for Greg, so as you generate free cash, I can’t – it’s been a while since I think you have generated the kind of free cash that you are talking about in 2024, could you talk about your plans for kind of just the cadence of debt pay-down? Is that $35 million to $45 million earmarked for debt pay-down in 2024? What’s your long-term target leverage level? And with the refi that you did, how much of your debt is fixed versus variable right now? Thanks.
Greg Gaba: Alright. Thanks Jon. I will address the last one first. So, roughly, our debt is 80% variable, 20% fixed. So, our first goal, right, for our capital allocation priority is to deleverage, right. We want to get under 3x leverage. So, our primary goal is to pay-down debt to accomplish that. We think we will be there, Jon, by the end of second half of the year. Other priorities, right, will either be stock buyback, will be purchase of ROI, high ROI investments or M&A acquisitions. So, that hasn’t changed. We continue to focus on paying down debt. We continue to focus on deleveraging. Continue to focus on getting under 3x, which is our long-term goal.
Jon Andersen: Okay. Great. Thanks very much. Thanks again. Good luck.
Brian Kocher: Thanks Jon.
Operator: Your next question comes from the line of Daniel Biolsi with Hedgeye. Your line is open.
Daniel Biolsi: I just wanted to extend my best wishes, Joe. And my question is the mid-single digit growth in plant-based, would you be able to sort of bucket that between oat and almond and soy? I am just curious how that looks for the industry.
