And as we’ve talked on previous calls, given the nature of our business and where we sit in the supply chain relative to final sales, I think it’s always good to take a multi-quarter average to the way of thinking about volume or pricing or even the flow-through to EPS. And I think that’s kind of something that we always think about. Otherwise, you can get too distracted by the ups or downs on any given quarter. So we’re going up. In the guidance, we feel confident about the second half. There’ll always be some puts and takes, but we think we have a great strategy and a great plan to execute for the rest of the year.
Operator: Our next question comes from Bonnie Herzog from Goldman Sachs. Please go ahead. Your line is open.
Bonnie Herzog: All right. Thank you. Good morning. I guess I had a question on your Asia Pacific operating margins, which were pressured again this quarter. And then, James, you touched on a couple of markets that are still facing pressures, but just hoping you could share a little bit more color on some of these headwinds in the region. And then any key initiatives you might have implemented to mitigate some of these pressures? And as a result, how should we think about your op margins trending through the remainder of the year in the region? Thanks.
James Quincey: Sure. As it relates to Asia Pacific, what we — there’s obviously a set of things that happened in Q2 that were specific to Q2. There were some destocking in the China operating unit that was kind of a significant piece there. And there was some strong demand for some of the juice businesses in China and India. And those are two kind of atypical factors that happened that depressed on a timing basis, the margin in Asia Pacific. It is worth noting that there is a sort of structural headwind when seen specifically just at the Asia Pacific region level. And what I mean by that is that we have a very big business in Japan, which is an excellent business and has a good operating margin. But then Asia Pacific concentrates a set of fast-growing emerging and developing markets, India, China, some of the Southeast Asian countries.
And given the nature of how fast they grow and their emerging profile, i.e., they have price points that are lower than Japan, they create a negative geographic mix effect to the Asia Pacific reporting segment. And that’s been a feature for an extended period of time. In other words, you have to sell one point something cases in India and China to make up to kind of compensate the mix effect relative to Japan. So that kind of structural headwind is always slightly there. Obviously, our objective is through our strategies, our marketing, RGM execution and the way we invest to try and offset that headwind. So if you look back over time, you’ll see that the — whilst the margin fluctuates up and down, it has kind of had a certain stability when you look, for example, 2019 versus 2022.
And so I close by saying don’t over rotate to one quarter in the case of Asia Pacific, given some of the issues. But I would also point out that this is not a region seen on its own where operating margin is likely to grow all the time because of the structural mix effect. But when seen at the company level, we obviously manage it as part of the overall portfolio so that it is a piece of the puzzle in looking at our total strategy of, as we’ve talked about, using the levers to hit that top end of the revenue 5 to 6 with a little bit of aggregate operating income margin expansion for the total enterprise. And we understand the role of each segment within that equation.
Operator: Our next question comes from Steve Powers from Deutsche Bank. Please go ahead. Your line is open.
