Chasen Bender: Got it. Thanks for that. And just kind of staying in the vein of inventory and cash management and as it relates to the updated credit agreement. Obviously, you’ve said that you expect to remain compliant and clearly, with the amendment, you’ve got a little bit more breathing room over the coming years. But can you just speak to your confidence in remaining in compliance with that and perhaps touch on some of the assumptions you have for the business that kind of underpins that confidence?
Mariela Matute: Yes, so we have a very supportive bank group with our €“ across our negotiation process. We have a plan to continue to produce EBITDA in this company and better EBITDA than the past year of 2022, plus cash generation from our working capital management, as well as our re-engineering plans that will produce benefits in the years to come as we continue to right-size this company and place Tupperware products in all the channels where consumers look for them. So we expect to continue to generate cash as a company and then the bank agreement will now allow us to continue the turnaround plan for the year 2023. So as of today, we are confident that we will be able to operate without a substantial doubt in 2023.
Chasen Bender: Got it. Thanks for that. And then, just switching gears, I believe on the pricing side, you’ve mentioned further price increases expected in ’23. Just wanted to confirm if that’s still the case. And if so, can you kind of wrap some color around what the magnitude of those increases might be? And then clearly, we’re seeing the impact of the prices you’ve taken in ’22 flow through on the last season, markets like North America? But perhaps you can dimensionalize how less of these have shaped up compared to your expectations. And how do you think about managing the trade-off between the two?
Miguel Fernandez: So, Chasen, again, Miguel here. So basically, 2022 was a really tough year from the pricing point in the U.S. As you know, we had inflations everywhere in the world, really high. We took even a double-digit price increase in countries that we’ve never €“ we haven’t taken a price increase in ten years. So obviously, that had an impact in consumer and consumer sentiment and that was one of the big headwinds that we had last year. This year, which is very different, we are going back to our normality of price increases, which in the countries that they have higher inflation, this is what we’ve been doing for years, so we don’t expect anything different. In the ones that we haven’t taken or we traditionally take less than 5%, we’re going to take less than 5%.
We feel that we’re already protecting our margin. We’re in a good space. The variations that you see are perhaps either country mix or product mix, but we’re in the range that we want to be in. So that is one of the big headwinds that we’re going to have in 2023.
Chasen Bender: Got it. I appreciate that color. And sorry, just one last one, and I apologize for being a hog. I get that the expansion to Target and some of these omni-channel efforts are still relatively small and I get that they were structured originally in such a way that they would be augmentative to the additional efforts from the sales force. But now that the product has been on shelf for effectively a quarter, has there been any change in sort of behavior or attitude from the sales force members now that they are, in a sense, competing with Target? And I get that competing is not exactly the word, but now that the two are effectively live and product is available at the same time.
Miguel Fernandez: So you’re right, competing is not the right word. I think it’s for us is a learning and it’s balancing. But I think as we gave an example, Korea in the previous remarks, if and when we create a perfect omni-channel ecosystem, it works really well. I mean, some of them obviously grow more than other ones. In terms of the U.S., the products that we’ve chosen are just a couple of them are very similar, but other ones are products that we never sell in the U.S. And some of them are heritage lines, which are the top sellers that we used to sell them in the U.S., but long time ago and this is the way we want to operate because it brings brand relevance. And it’s like, I’m going to call it, paid advertising because we obviously we made €“ we want to make money in these retailers, but also it brings the Tupperware brand and that iconic brand that we have brings it to the mind of consumers that we’re not accessing right now.
So, it’s a matter of time to get there. But you got to remember that our sales force, they normally, on any given month, they sell over 200 different SKUs, whereas we have a very limited amount in Target. Right now, Target is, I am going to call it, probably 1% to 2% of our sales and 98% is coming from direct selling. So it’s €“ obviously, it’s a journey and we’re going to continue to learn. But right now, Target has such low penetration that is €“ we haven’t seen any change in the behavior of our sales force.
Chasen Bender: Got it. Appreciate the color. Thanks, Miguel. Thanks, Mariela. I’ll pass it on from here.
Operator: The next question comes from the line of Linda Bolton Weiser.
Mariela Matute: Linda?
Miguel Fernandez: I’m sorry. We cannot hear.
Doug Lane : Operator?
Miguel Fernandez: It might be on our side. Check on our side.
Doug Lane : No.
Mariela Matute: Maybe Linda can redial.
Doug Lane : Operator, can you hear us?
Operator: Yes. I do apologize. I just had technical difficulties.
