Alexia Howard: So two questions. Firstly honing in on Quest, obviously, the pace of growth the consumer takeaway is still very strong and has been for quite some time. I’m just wondering what innings are you in on the distribution gains? Is it new outlets or is it more of the expansion of SKUs in certain channels? Presumably velocity is improving over time as well. But I’m just trying to figure out, you mentioned a slowdown is expected as the business gets bigger, but at what point does that happen and what are the levers can you pull? And then I have a follow-up.
Joe Scalzo: I had the benefit of having watched Atkins for 10 years and watch the progress of distribution gains on average. I think Atkins MULO + C has 45 items in distribution, top retailers 60 to 65. So Quest is in very early innings. And you have to remember, we bought a business that was principally a singles business. The team — the Quest team prior to the acquisition started looking at multi-packs. So there is opportunity in the bar business alone for us to build out distribution in larger pack sizes. You then have — you then have the opportunity for us as we’ve been innovating in other snacks to build out that platform over time. So very early innings in distribution gain. More importantly on this business, lots of opportunity to drive brand awareness and trial.
So relative to Atkins, everybody knows Atkins, high, high brand awareness. Quest is still relatively unknown as a brand. So the money that we’ve added and invested in this brand, I think when we took the brand over, we were — the team was spending about 4% of net sales and marketing, we’re now up to close to 8%. We got to keep the pressure on there to keep the brand awareness and trial growing because it’s still not particularly well known as a brand. And you can see the brand promise is big. This is a big business still with relatively low brand awareness and still growing with a lot of opportunity and trial. So that’s the game and I’m really excited, Geoff is exactly the guy to make that happen.
Alexia Howard: Great. And as a quick follow-up, now that you can sort of see light at the end of the tunnel on the supply chain and input cost pressures, are you beginning to see expectations that promotional activity will step up in retail or is that still on the back burner for now? Thank you. And I’ll pass it on.
Joe Scalzo: Really early innings, right. So no, we’re not seeing, you’re asking the question as costs get better, so I appreciate that question. How do you see investing, how will you invest back? For us, we would be — we would be looking to get marketing investment back to where we feel like is a healthy level. So as gross margins approach 40%, we want to get the marketing spend up in the 9% to 10% range, right. We will be spending that with customers on a tactical basis. Especially, we’ve seen some issues with pricing elasticity on some of our products. So you might start using temporary price reduction or base price reduction to get those more in line with what our consumers see the value. But those are decisions that Geoff and the team will start wrapping their mind around as we start thinking about the next fiscal year and where cost are going to come in and how we want to deploy those funds.
Alexia Howard: Great, thank you very much. I’ll pass it on.
Joe Scalzo: Have a good day, Alexia.
Operator: Next question comes from the line of John Baumgartner with Mizuho Securities. Please proceed with your questions.
John Baumgartner: Good morning. Thanks for the question.
Joe Scalzo: Hey, John.
