Operator: Our next question comes from Kaumil Gajrawala from Credit Suisse. Please go ahead. Your line is open.
Kaumil Gajrawala: Hey, good morning, everybody. Can you maybe touch on briefly what you’re seeing from the retail environment? We’re seeing more and more articles on retailers pushing back on price increases across really all of CPG. If you could maybe just give us a sense of what you’re seeing in your categories?
James Quincey: Sure. I mean, first, one has to kind of break down the, global dynamic because each major region or each country is a different place. But let me start with the central idea that we pursue, which is we need to earn the right pay price. It’s not our strategy to think of our business as commoditized where prices just flow up and down in a kind of mechanical way. We need to own our pricing by delivering for the consumers value that they appreciate through the marketing, through the innovation, through the RGM, the pricing and packaging work, through the execution such that they see value in our brands that can sustain the pricing that the input costs are driving us towards. And that ultimately then has to work for the customers.
And because it has to work for the consumers, it then flows down the customers. So we’ve earned the right to price with the consumers. Then we can go to our customer partners and say, ‘Look, we think that we can lead the beverage category to grow faster than your business.’ Yes, we believe we’re going to be more competitive because we understand the consumers and we’re going to gain share, but we can lead the beverage category, deliver more growth for you and be a disproportionate share of your rate revenue growth relative to other categories,’ which is what, for example, was demonstrated last year in Europe, where I think we led — we added more revenue growth than any other system for retailers in Europe last year. And that is the platform on which we then fold in the conversations around pricing and packaging for any given year.
So yes, of course, there’s pressure in the marketplace. But in the end, we have an approach we believe, is consumer-centric and that drives growth for the customers because they also want to keep the consumers too.
Operator: Our next question comes from Chris Carey from Wells Fargo Securities. Please go ahead. Your line is open.
Chris Carey: Hi. Good morning. So clearly, the past several years have had big variability in your channel and package mix within the overall price/mix equation with mobility constraints and sharp recoveries thereafter. Just taking John’s commentary on a price-driven year for next year, James talking about still €“ volume will still be a factor, I guess, what I’m wondering is just underlying what’s in that price/mix, whether you think channel and package mix have normalized, right? Said another way, there’s €“ we’re not really talking about recoveries in those line items and what’s going forward will be kind of more offensive or growing from a normalized base. And so do you think you’re back to that normalized base on €“ from a channel and package mix from which to grow? And then in 2023, do you have any thoughts on what the contribution is from price relative to channel or package mix? Thanks.
