Jim Salera: Okay. Great. And then, if I could ask you a question on private label. You guys mentioned, seeing some consumer shift into retail formats that have more private label coconut water. Do you have a sense of if those are existing coconut water consumers that are just buying private label in a format with more private label? Or are they shopping in a value concept, but they’re actually new to the private label category as a whole in that, you know, when economic conditions normalize, that might be an opportunity to get a trade up from private label into branded?
Martin Roper: I think our belief is that, you know, those sorts of channels where you’re typically buying a multi-pack, tend to lend themselves to consumers who are already familiar with the category, because it’s a multi-pack purchase. We certainly believe that you can trade consumers up from private label to branded and we look at that as an opportunity and we think that we monitor the price gaps carefully. Long-term, we just think it’s indicative of the, you know, the health of the category. Private label in our shipments is sort of helped by both our inventory position relative to other suppliers and the addition of new accounts, particularly on the international side that are generating very strong growth. We certainly recognize that private label volume growth is ahead of branded growth, partially because it’s operating at slightly lower price points in this time last year, but it’s very healthy.
And we just view it as part of a very healthy category and are very happy we’re playing in both sides of it.
Michael Kirban: Yes, I was just going to add, Jim. Consumers are coming into the category, so the category is increasing households and the brand is increasing households. They’re coming through multiple channels, but it’s the underlying health of the category that’s supporting the growth of both branded and private label.
Jim Salera: Appreciate it, guys. I’ll hold back in the queue.
Operator: All right, thank you. One moment for our next question. Next question comes from the line of Trevor Sahr of William Blair. Please go ahead.
Trevor Sahr: Hey, thanks. Trevor on here for Jon Anderson. That question was just on the multi-pack rollout, wanted to hear maybe some context from you guys, the performance so far, whether that’s been meeting expectations, we’re seeing some good trends in this kind of measure channel data, but wanted to kind of hear from you guys how the multi-pack rollout has been and any distribution gains to come to this year and next regarding to that?
Martin Roper: Yes, I think we’re very happy with the progress of the multi-packs, so the impact both on our business and our share, given that we’re one of the few brands that offers multi-packs in food and mass. And we’ve seen obviously very good wins. Those winds are, you know, the size of those wins is sort of laid out in the investor deck. I think it’s sad to say that we hope for more distribution this year. Some of the retail sets are a little delayed. It’s a little unclear when that’s going to get delivered, but we’re optimistic that the velocities of those items and the profitability of those items for retailers justify closing, you know, the ATV [ph] gaps that we have on those items relative to our singles. So we’re going to keep hammering away at that. We’ve obviously presented that. We do expect some wins as the resets happen. It’s just too early to know exactly when those are going to get completed.
Trevor Sahr: Okay, great. Thanks. It’s all for me.
Operator: Thank you. One moment for our next question. Our next question comes from the line of Eric Serotta of Morgan Stanley. Please go ahead.
Eric Serotta: Hey, thanks, guys. I want to circle back on multi-pack case. Want to circle back on multi-packs, quick question here. The absolute contribution in the quarter per your slides was a little bit less than the run rate last year. Wondering were multi-packs in particular or as part of the broader picture impacted by some of the promotional timing and inventory issues that you spoke about. And then on the private label side, you’ve spoken in the past about private label has being a door opener for your branded business. We’re probably coming on a year now of pretty robust private label growth. And just wondering what you’re seeing in terms of if private label is in fact helping unlock some branded customers? Thanks.
Martin Roper: Yes, on the sort of multi-pack question, I think we’re happy with the trends and the contribution that multi-packs are having to our business. We certainly have some sort of supply challenges on a couple of the multi-packs that is probably limiting retail execution. We alluded to, I think, on the call that we moved the major distributor incentive out of Q1 to later in the year. And so that would reduce the retail execution and promotional activity that might help the scan numbers. So, I think we look at the scan numbers and we’re not worried in any shape or form. It’s a function of all of these things and it’s reflective of a very healthy category and we think a very healthy brand. And as Corey mentioned, all the household numbers that we have show good year-on-year trends.
As it relates to private label, when we talk about our private label business is very healthy. The accounts we’ve gained that have opened doors for us are mostly in the European markets and we are basically making good progress with our brand in those markets too. And so, I think in our remarks, we talked about Germany being an exciting opportunity beyond just the UK. I think each of these markets is at different stages of coconut water development and so the UK is potentially ahead of where Germany, France and Spain are, but the private label business for us in mainland Europe is opening some doors and the branded sales trends that we’re seeing as we sort of have an opportunity to participate in those markets are encouraging. So, I think our long-term goal in those markets is to build the number one premium coconut water in those markets from, you know, frankly almost nothing and grow the category to the same penetration as the UK or the U.S, which would mean that Europe could be as large as North America.
That’s the long-term goal.
Eric Serotta: Great. And then just a quick follow-up in terms of that distributor incentive that moved from first quarter to later this year. Should we expect that in the second quarter or the third quarter and in terms of any color you could give us in terms of order of magnitude, in terms of the impact on your sales growth and whatever quarter that’s going to fall in, whereas it’s incorporated into your guidance, but it would help us in terms of quarterly cadence?
Martin Roper: Yes. So, I think it’s currently, you know, planned for Q3, but it’s subject to move based on supply chain inventory demand of product availability and all those sorts of factors. Really hard to quantify what the impact might have been, and so, a little uncomfortable doing that. It was a program with our largest distributor, so it wasn’t a national program, but it was a largest distributor, which covers a significant part of our DSD business, and, again, very hard to quantify the exact impact.
