James Quincey: It can be both, Nik. And obviously, it depends whether we’re talking about supermarkets, convenience stores or small mom-and-pops. The more we’re talking about smaller stores or convenience or the mom-and-pops, the more it is replacement. Obviously, we make a big focus even in those smaller formats to gain incremental space, whether it’d be in the coal vaults or on the floor with our own coolers and our own racks. That absolutely does increase the beverage category phasings. But there’s nothing wrong in any given store with looking at the SKU layout and saying, look, I’m going to take some of these SKUs and make them — replace them with more affordable SKUs. And I’m going to take some of them and put more premium options in such that the total mix works not just for us, but also for the customer and, ultimately, for the consumer.
It’s got to work for the consumer. Otherwise, it’s not going to rotate faster than the setup that’s already in there because in the end, the customer is going to support these strategies because it works for them, because it works for the consumer, and everyone is better off with the implementation. So, yes, a mix of incremental versus cannibalized phasings, ultimately, by focusing on the consumer, you get a better answer for them, that creates a better answer for the customer, that creates a better answer for the coke system.
Operator: Our next question comes from Bonnie Herzog from Goldman Sachs. Please go ahead. Your line is open.
Bonnie Herzog: Thank you. Good morning, everyone. I was hoping you could provide a little more color on your plans for reinvestments this year and then maybe frame for us whether it will be stepped up versus last year. Also, how are you thinking about your marketing spend this year? Do you also have plans for that to accelerate? I guess, I’m ultimately trying to understand, how much flexibility you have to balance the momentum. You’re certainly seeing in your business with reinvesting, while at the same time, letting some of the strength flow to the bottom line. Thanks.
James Quincey: Yes, sure. We’re clearly going to, as we have in 2021 and 2022, have a bias to invest for growth. That’s our starting point. And as we demonstrated in the early years of the pandemic, if we see overall or in any specific countries that, that allocation towards driving growth is inappropriate at some sort of level, we’ve demonstrated the ability to act quickly to redirect the money either somewhere else or to let it go to the bottom line. So we’re going to use all the data we get in from the field to be very dynamic in our resource allocation. We largely feel, we have achieved an appropriate level of marketing. Yes, that’s going to increase in 2023 because we’re growing the business in the same way, as John mentioned, we’re going to increase our CapEx to support the bits of the business where CapEx needs to flow.
But we are going to manage all of this with an agile hand depending on the circumstances. We talked in the answer — the answers to the other questions that we don’t know what the year will hold. We have a central view that it’s growth-orientated, the balances, volume and price that accommodates different pressures around the world and different speeds of moderation of inflation, but it’s a bias towards growth, and we will be fast and adaptable in the face of anything different.
