We have entered into shorter-term arrangements on certain lanes where we need to guarantee capacity, and particularly guarantee that the ships stop at the ports that we need them to, but those are typically two to three months’ commitments on specific lanes, so at this point in time we remain very under-contracted on a forward-going basis. And the reason for that is that when we’ve asked for sort of long-term proposals to us, those proposals look unreasonable as to what we think the overall pricing is likely to be over the next 12 months, given the excess capacity that exists in the shipping ocean business and given the demand for those containers. We still believe we’re in a over-capacity situation and that we are better off operating as we are than committing to long-term contracts that are being proposed at higher rates than we’re currently paying.
Michael Kirban: And then as it relates to increasing supply from Brazil or anywhere, our objective currently is to, as we see growth continuing well into the future, is to increase our supply in all of our regions. You might see that we announced a couple of deals in the Philippines over the last several weeks to expand supply there, and we’re looking at new supply partnerships in other places also as we continue to expand supply and prepare to keep up with the continued demand.
Eric Des Lauriers: Okay, that’s helpful. And then this last question from me on sort of innovation and new use occasions. So, you mentioned the sort of exclusive new drink at Target. I guess as far as on that, I mean, is this something that you expect to remain exclusive to Target? Might this expand to other retailers or channels? Should we see something similar to this partnership with Target elsewhere? And then, just kind of touching on the use education of coconut water as an alcohol mixer, obviously, last year, you know, there was the partnership with the Diageo and a few, I guess, featured cocktails at some summer events. Can you comment on plans for this year of sort of continuing to educate the consumer on the coconut water use occasion as an alcohol mixer? And maybe any specific comments on the Diageo partnership would be great? Thanks.
Michael Kirban: Yes. So treats, Vita Coco treats, we’re really excited about the initial results, but it’s early and it’s initial results. What we’re doing there is, you know, looking at a new occasion for consumers, which is using basically a coconut milk beverage as kind of a mid-afternoon treat type of thing. Initial results, scans at Target are great, probably better than we might have expected going in. And so we’re excited about looking at it and continuing to expand it over the course of the year and into next year. As it relates to Vita Coco as a cocktail mixer, that’s something we’ve been working on now for going on two years. It’s become a significant part of our communications, you know, our consumer communications.
And it’s working. And we’re putting, you know, we spoke about the fact that we’re building out a bigger food service team. And part of that is making sure that as bars and restaurants and clubs start putting cocktails on the menu, which we’re seeing happening everywhere, Vita Coco is the choice and is through the right distribution systems to be able to get there and be the primary coconut water that’s used for that occasion. So it is an important occasion and a growing occasion we believe for consumers.
Eric Des Lauriers: Great. Appreciate that color. Thanks for taking my questions.
Martin Roper: Thanks.
Michael Kirban: Thanks.
Operator: Thank you. One moment for our next question. Next question comes from the line of Eric Serotta of Morgan Stanley. Your line is now open.
Eric Serotta: Hey, just a quick follow-up. In terms of the top line guidance increase, was that attributable just to private label or branded or both? Any color on that would be helpful.
Martin Roper: It’s both. Eric, it’s just us taking a look at the underlying health of the business, the year-to-date performance, and trying to give you guys the best information we can on where we expect the year to land.
Eric Serotta: Got it. Thank you.
Operator: All right. Thank you. I am showing no further questions at this time. I would now like to turn it back to Martin Roper for closing remarks.
Martin Roper: Thanks, Stephen. I’d like to thank you all for joining our Q1 earnings call, and we look forward to talking to you when we report our Q2 earnings. Thanks very much.
Michael Kirban: Thanks, guys.
Operator: Thank you for your participation in today’s conference. This does conclude the program, and you may now disconnect.
