Steve Powers: Yes. Great, thanks. Maybe to follow up on that point. Can you just — Shaun, can you clarify if sales are coming in slightly ahead of your expectations, can you just talk a little bit more about why the ingredient costs are flowing through slower than expected, this is the disconnect there or maybe I am missing something.
Shaun Mara: Well, a couple of things, Steve, I would say first of all as we’ve worked through, again, the commodities that we have out there, the commodities are at different price point. I’ll give you an example, one of the biggest pieces of our commodity favorability we’re seeing is whey. And whey protein is actually fairly down overall. The burn through that from our co-man is just coming at a slower rate than we originally had thought going forward. So even though we’re selling product as we go through it, how we actually reduced the inventories to get to the point where we’re actually recognizing that savings in our P&L, they just come at a slower rate. I think the second piece is, yes, we’re doing better from a POS standpoint.
Obviously, volume is not increasing as much POS as obviously Joe talked you through. So we’re not seeing the volume and we are basically adjusting that in a co-man environment as well, getting to lower volumes. That’s what they’re making obviously as volume, not necessarily the price piece of that. Does that help?
Steve Powers: Yeah. That does help. Okay.
Joe Scalzo: And Steve, just say — just so you understand, right, so you’re — we’ve come out — we’ve come from an environment where you wanted as much inventory as you could have in your system backlog, right. So there is — when you produce to a supply plan, not to a demand plan. So as you’re bringing inventory levels down to more normal levels, your actual production levels come down. So units are running slower as we bring our inventory levels down against the same demand, right. The other context here is, we’re talking about really small changes. Shaun said this. In the quarter, we’re talking about a $1.5 million or nearly $200 million of cost. And as you dig into the (ph) of it, none of it is really big things. It’s a smattering of small inflationary things, slightly worse than what we have anticipated.
And if you just step back from all of this, we own contracts for lower ingredients. We can see the cost environment in our business changing fundamentally. It’s just happening a little slower than what we anticipated.
Steve Powers: Okay. I mean that — because that — that’s going to — I mean, that was sort of that’s the crux of my question, because there had been these slow kind of slices that it impacts your forecast and have come cost — results come in slightly below external forecast as this has been progressive. So the question I guess as you look forward, maybe you just answered it, but do you have the visibility and is there anything else you need to do? I mean, we’ve been talking about sort of a climb back to that 40% objective over time. And in this quarter we’re a long — we’re a long way from it. So I’m just trying to get your
