Pamela Kaufman : In North America, you pointed to your organic sales growth below consumption in certain parts of the portfolio, like the GROW platform, Taste Elevation, Easy Meals. What’s driving that gap, and are you seeing a change in how retailers are managing inventory levels or shelf space for your brands?
Miguel Patricio: Let me start with the – thanks for the question. Let me start with the second part of that, which, what we’re seeing right now is – if you look at the second quarter and what we know today, we believe retail inventory is actually in pretty good shape. In fact, on average, retail inventory for us was flat across the North America business, and what did happen, it was in truly isolated pockets and earlier in the quarter, so that we actually saw that through the quarter it continued to improve, and so there’s no – I don’t see that as an ongoing situation as we go forward and that has been proven as we go through the quarter, so. And I’m sorry, the first part of your question then was what?
Pamela Kaufman : Why were your sales below consumption across some of your platforms?
Miguel Patricio: Yes. No, thank you. You know, I think if you look at our GROW platforms, which continue to drive our priority and our strategy, those actually in consumption remain very strong. I think if you think about Taste Elevation growing 8% for the quarter, Easy Meals growing 6% in the quarter. In those cases, the difference between organic and our consumption were specifically in Easy Meals, where there was an inventory de-load in the beginning part of the quarter that as I said earlier, it continued to improve as we go into – as we go forward. And I think for us is, that remains – our strategy remains – the fact that the consumption continued to improve as we go through the quarter and the performance we saw in those, I think supports our continued focus on that strategy as we go into the second half of the year.
Pamela Kaufman : Okay. Thank you.
Miguel Patricio: Thank you.
Pamela Kaufman : And just a follow-up question on your outlook for volumes improving in the back half. You pointed to moderating pricing growth as one of the drivers, but in the second quarter, pricing already moved past its peak, although volumes still softened. So why do you think that volumes will get better from here, considering the competitive environment and some of the macro headwinds you highlighted, like the student loan repayment resuming? And I guess just related to that, how much of a driver do you think that the innovation that you talked about can be for volumes? Thanks.
Andre Maciel: Yes. Look, our price – our price in Q2 as you saw was close to 11%, and the reason why we saw higher elasticity and higher volume decline as I said before is because of the expanded price gaps. Now moving forward, these price gaps are not getting worse. If anything, they are slightly getting better. So as you head into the second half, as we continue to lap price, we still have valuable price that happened last year, so that you’re going to be lapping starting now in Q3, and even we had another round that implemented Q4 last year. So we have two rounds of price still to lap in the United States alone. So beyond the pricing side, there are other things linked to our action plans that will help us to step up the share level that we are at today. I think Carlos can speak about that.
Carlos Abrams-Rivera: The one thing I guess I would add to that too is that, if you think about innovation, it’s not just kind of the launching innovation, but what the innovation allows you to actually perform in market. So when I mention things like us being able to improve our presence and expanding our shelving on things like Lunchables because of the innovation. And in Lunchables for example, we are going to new locations. So we’re doing – already announced yesterday, we’re doing pilots on taking Lunchables into the pro section; we’re launching innovation in schools; we are expanding our presence in vending. All that actually helps us strengthen our overall kind of performance in stores. We also are doing that in Philadelphia cream cheese.
If you think about a year – a year ago, this is actually going to be the first holiday season in which we’re going to go into the holidays with full service on Philadelphia cream cheese and that’s true for the last several years. So now we have an opportunity to actually truly kind of leverage our power of our brand, make sure we build that kind of our shelf display, as we go into this one of the most important seasons for Philadelphia business. And we also changed to that too in coffee. I mentioned earlier, the fact that we had a new line with IHOP in terms of bringing coffee, a new IHOP coffee into the stores. That actually allows us to also expand our coffee category into the stores and actually win additional spaces as we go into the second half of the year.
So the innovation plays a couple of roles. It both attracts consumers and shapes our category to grow, but it also helps us expand our presence in order to increase the volume as well.
Andre Maciel : So volume expected to improve as a function of lapping prices from last year. We still have two rounds to lap. Innovation ramping up. Shelf resets in the fall. That I think would be favorable to us, that’s the expectation and service level recovery, particularly in cold cuts.
Pamela Kaufman : Got it. Thank you.
Operator: Thank you. One moment for questions. Our next question comes from Cody Ross with UBS. You may proceed.
Cody Ross : Hi. Thank you for taking our questions. I just want to focus on gross margin and specifically your inflation outlook. What’s driving you to move your inflation outlook lower this year?
