Joe Scalzo: Yes. Let me do one thing first. I think Geoff started to do this. I just want to remind the callers that our POS year-to-date [indiscernible] total company is up 12%, 13%, right? So we’re zooming in on one piece of the business and one form of the business. But I want to highlight the diversification of the portfolio by brand and by form and by channel has enabled us despite some slowdowns in part of the Atkins business to continue to show strong growth. So, kind of how to think about — how to think about support where the gaps in the portfolio were in the innovation pipeline. It was kind of a confluence of 2 factors a year ago. Factor number one was, as I mentioned, from the previous call, we saw heightened sensitivities to our first price increase which would have been in October of 2021.
We saw some velocity slowdowns in our snacking portfolio. So when those shelf resets were starting in September, we had some items in our snack portfolio that were weaker than we originally anticipated. And as we were putting new items in, those items fell out. And just to give you some context, year-to-date, Atkins distribution is up 6%, 7% nationally. So it’s not like we’ve lost shelf space. We’ve actually lost items in a particular part of the portfolio and that trade out has been actually detrimental to the brand. And then the second factor was innovation — in any innovation pipeline, you’re putting ideas at the top of the funnel, eventually products commercialize out the bottom what we normally would have experienced. So the combination of losing more items than what we anticipated and not as many items come falling down to commercialization led to the gap.
And roughly, the gap was, call it, 4 to 5 items lost in distribution, spring of last year. That takes time to rebuild that. Geoff and the team are on it. it will happen as we play out the next fiscal year, the resets in the spring, fall and next spring and we’re pretty confident that we’ll rebuild we’ll rebuild the snacking portfolio and the brand and the brand will get back to the kind of growth we wanted to have.
Geoff Tanner: Yes. The only build for me would be, as I mentioned in the scripted comments, I’ve been on the road talking with all our top retailers. They love this category and they really love Atkins. And so we expect we’re going to get a lot of support when we bring these new items to market over the sequential launch windows.
Pamela Kaufman: Okay. Yes, I was just curious if the innovation is going to be around flavors or different pack sizes, I guess, how you think about the opportunity to innovate and where you see attractive segment?
Joe Scalzo: Yes. Look, we’ll talk about — Geoff will talk about the items in distribution as they’re in distribution and starting to produce results. We don’t like to talk forward about how we think about innovation.
Pamela Kaufman: Okay, understood. And my other question is just around reinvestment. You talked about how improved gross margins will allow you to reinvest behind the brands and opportunity to step up investment behind Quest. So can you just talk about how you think about that time line for getting to 10% of sales on marketing and advertising and how you’re thinking about spending over the next couple of quarters behind brand building?
