Alex Ryan: And keep in mind that there is always some level of variability in the timing of wholesale sales. So we’re cognizant of that just as Lori mentioned as it relates to Q1 that can occur again as we get to the border over the next Q2 and Q3. So we want to be cognizant of that and how we look at things.
Drew Levine: Thanks so much for the color and then just as a follow up on the California director retail channel, not taking anything away from the performance, obviously against a tough comparison, but the three year did decelerate a bit in the quarter. Obviously a more developed market for Duckhorn. So just curious if there’s anything else from a consumer perspective that you’re seeing, maybe in California relative to the rest of the United States.
Alex Ryan: Hey Drew, that’s a great question and I think we had reported this on some earlier reporting. We had a bulk wine shipment, a bulk wine sale built in to the quarter of the prior year. It’s unusual, we don’t normally do a lot of bulk wine sales, but from time to time to manage quality, we will do that. If you exclude that somewhat unique item, we are up high single digits in the State of California, the largest wine consuming state in the Union. So just to put a clarifying point on that, I think our results in California were really, really healthy for the luxury bottled wine sales that were — that we typically — that we do as our core business.
Drew Levine: Okay, thanks so much for that color. I appreciated it and congratulate again Lori.
Operator: Thank you for your question. The next question is from the line of Greg Porter with Evercore. Your line is now open.
Greg Porter: Hey guys, thank you for taking the call. I was wondering if you could provide any more color on how you’re thinking about the CFO search internal versus external and just kind of any more color you can provide there. Thanks.
Alex Ryan: Yes, as you would expect, first of all, Lori is going to remain in the CFO position until where you’ve hired someone and integrated. So there’s no lapse in anything. So we’re very confident that we have full support and coverage until that time. We’ve hired a national search firm and one of them significant items are going to be looking for is public company experience, a solid public company experience to help us take this company for the next several years into the future. So I think we’ve covering all the important parts that we need and that the market’s going to need from us.
Greg Porter: Great. And then just one other quick follow up. So I saw in the press release that the underlying price mix without the impact from the Costa Brown shift was flattish. Is there any more color you can provide, I guess I got to know the track channel numbers have been around 2%. Is that sort of what you’re — what you’re seeing and do you think that level of pricing is going to sustain through the end of the year or do you expect that to kind of ramp or decline kind of based on the cadence that you have planned out?
Lori Beaudoin: Yeah. So Greg, we don’t really break out price separately from brand. So we have price mix we did see in the quarter. So as we had anticipated the DTC would impact our margins for sure and that’s actually what we saw. We didn’t have — our margins didn’t decline to the extent that we thought they would mostly because of we experienced a little earlier benefit from the pricing changes than we anticipated as I mentioned earlier and then also we had really strong brand mix, which helped offset some of that that we hadn’t anticipated.
Alex Ryan: I think another point to take into account is that we’ve seen zero pushback on our pricing changes into the first quarter and the beginning of this fiscal year. So, we’re confident that we made the right ones at the right time and we do expect those to continue to flow through the — flow through the performance for the year.
Operator: The next question in front of the line of Kaumil Gajrawala with Credit Suisse. Your line is now open.
Kaumil Gajrawala: Thank you, everybody. Lori, congratulations and thanks for all your help, especially around the IPO. I don’t think any of us on this call were that easy on you and you managed it well, appreciate all the effort and so maybe I’ll just start with a with a CFO question as well on margins. I believe you said that you saw improving margins within specifically the wholesale channel. Can you maybe just talk about what’s going on there and how you are kind of able to improve margins on that part of the business and then maybe just some context on what the perhaps the spread looks like on your California business versus your wholesale business.
Lori Beaudoin: Yeah. So Kaumil, so what we saw is we saw more sales in our wholesale channel than we had anticipated and what I was referring to with regard to the spread was more so that we had anticipated our distributors would bring in heavy prior to our price changes and the price changes were effective mid quarter. We didn’t see that behavior. We saw kind of business as usual but then we also saw heavier buy-in towards the end of October, the end of our quarter. So we recognize greater benefit from that in the quarter than we had anticipated. And recall how we implement our pricing changes, right. We have multiple ways we can do it. One is through reducing trade spend and one is through changing our frontline price and so the majority of this price changing was implemented through changing our trade spin.
Kaumil Gajrawala: I was curious, would it — I was curious what it looked like or what it looks like now the price margin differential between your director of California business versus your wholesale business.
