Michele Buck: So we have high single digits in the second half of this year and as we look to 2024, low single-digit pricing.
Michael Lavery: And just to clarify, that’s without any other — that would be before there’s anything else that might still be to come, right?
Michele Buck: That’s what we have announced.
Michael Lavery: Perfect. Thanks so much.
Operator: Thank you. Our next questions come from the line of Pamela Kaufman with Morgan Stanley. Please proceed with your questions.
Pamela Kaufman: Good morning.
Steve Voskuil: Good morning.
Michele Buck: Good morning.
Pamela Kaufman: Your advertising spend was up 15% this quarter, which is an acceleration from Q1. Given the better-than-expected performance in gross margins for the year and what you are seeing in the competitive and demand environment, are there any changes to your plans for marketing spend for this year relative to before?
Steve Voskuil: No fundamental changes. We had expected this year to be a year to invest in brands, and again, as we have capacity coming online and leaning into seasons, especially if we get to the back half, a significant increase in brand investment was planned and we are executing to that plan.
Michele Buck: And also as mentioned, we were working to really front-load more of our salty planning because of S/4. So our plans accounted for that as well.
Pamela Kaufman: And then just in the prepared remarks, there are comments about some private label launches in your Salty Snacks categories. You are generally in categories that face very little private label competition, but considering the launches that you alluded to. Just curious to hear how you are thinking about managing private label competition in your categories and how you are addressing it?
Michele Buck: Yeah. So, certainly, there is a bit more private label in salty than in CMG. But we have considered — we have continued to see that, while private label has ticked up a bit, our brands have continued to remain quite strong and do incredibly well. And as we look at private label, even within the confection category, while there has been increased activity there, it’s remained a very small part of the category less than 3% and the entries we have seen in the marketplace this year are still relatively small. So we don’t take our leadership for granted. We certainly continue to invest in our brands to make sure that our propositions are strong. But we feel very well about how we are competing right now in the marketplace on that.
Pamela Kaufman: Thank you.
Operator: Thank you. Our next questions come from the line of Nik Modi with RBC Capital Markets. Please proceed with your questions.
Nik Modi: Yeah. Thank you. Good morning, everyone. I was…
Michele Buck: Good morning, Nik.
Nik Modi: Good morning. I was hoping you could just kind of address the Halloween season as it relates to some of your competitors still struggling with supply chain and have cut back their orders. I am just curious, do you — how can you take advantage of this, do you have visibility at this point in terms of maybe securing some of that missed opportunity by some of your competitors? Just wanted to get some clarity on how you think about that as it relates to the third quarter?
Michele Buck: Yeah. So we are expecting a very strong Halloween. We know that customers are planning big displays and we are certainly participating in that and as well have strong marketing support to consumers planned as well. So we have certainly taken an approach of leaning into Halloween. We feel good that there will be plenty of candy out there. So feeling good about that. As we look at overall in the back half as it relates to market share, we think that there will be a stable approach overall, but some pressure on everyday despite some of our strengths around the seasons.
