So, do I think it’s a, I think it’s certainly an opportunity for us, we are very much focused on making sure that we’re growing in those channels, that we’re meeting with the shopper once, we have a great offering to do that, but it’s still more a white space opportunity for us than established business.
Peter Galbo: Okay, no, that’s helpful and then Ajay, maybe just a really quick clarification. I think you gave some color on the fourth quarter volume mix, I think you said there would be a 2.5% point drag from SKU rat, otherwise your volume mix would be up 3%, so netting to like a 0.5% positive, do I have that right or did I miss something?
Ajay Kataria : Yeah, I think that’s right.
Peter Galbo: Okay, perfect. Thanks guys.
Howard Friedman: Thanks Pete.
Ajay Kataria : Thanks Pete.
Operator: Your next question comes from the line of Rupesh Parikh with Oppenheimer, your line is open.
Rupesh Parikh : Good morning and thanks for taking my question. So as we look at cost pressures in your business, just curious if you have any early reads in terms of what inflation could look like next year and whether you see a need to take pricing at this juncture.
Ajay Kataria : Yep, thanks for the question Rupesh. So as is our, first we are expecting a normalized inflation and price environment pre-2020, next year and secondly, as is our normal cycle, we are in the contracting cycle for next year and we are about 30% of the way there. The big nugget for us is potatoes. Those contracts will be signed in the next, I want to say four to eight weeks, so we’ll know more about the inflation basket as a whole for the year, so we should be able to talk more about it when we see you in December and definitely as we guide in March.
Rupesh Parikh : Great. And then maybe one additional question. Just on the competitive front, given the category is slowing, how do you characterize the competitive environment? Is it still rational or do you see any changes out there?
Howard Friedman: No, look, I think the overall environment is rational and is what we would expect. I think what we saw in the category to your point, when we looked at the quarter even a few weeks ago, what we saw was the category was starting to slow more than we would have anticipated. In terms of competition, pricing, customer or competitive behavior, they’re all largely in line with what we would expect, nothing crazy.
Rupesh Parikh : Great. Thank you. I’ll pass it on.
Howard Friedman: Thanks, Rupesh.
Operator: Your next question comes from the line of Michael Lavery with Piper Sandler. Your line is open.
Michael Lavery: Thank you. Good morning.
Howard Friedman: Good morning.
Michael Lavery: Just, I was wondering if you could touch on Boulder Canyon. Its growth obviously is extraordinary. What are some of the drivers there and how sustainable might that be?
Howard Friedman: Yeah. So, look, I think we feel really good about where Boulder Canyon is and it really is a good example of a brand that we acquired and can show the strength of our network. It’s really predominantly a better-for-you story because obviously it’s the avocado oil and olive oil trends that we’re obviously seeing that are driving a lot of it. But consumer acceptance of the brand has been quite strong, mostly in our natural channel, in some of the unmeasured channels, and then obviously coming into groceries. So I think we believe there’s a long runway for the brand. It’s got a clear point of difference. It’s got a consumer cohort that is clearly interested in it and as you see the economy continuing to move and we talk about value, Boulder Canyon for a segment of the consumer base is valuable and so it’s one of the places where it’s not just about pricing but it’s over the total offering of the brand.
Michael Lavery: And is it broad distribution and velocity gains or is there a big win that have a certain timing cycle we should keep in mind as far as how that goes?
Howard Friedman: Yeah. No, it is distribution and velocity gains and household expansion. It is not a — we gained a class of trade that we didn’t have previously. I think there’s a lot of runway left for that brand.
Michael Lavery: Okay, great. Just on Zapp’s, obviously that one’s been on fire and it’s had a much more regional SKU that you’ve begun to broaden pretty nicely but maybe can you touch on how the Pretzel launch is going in that brand and what else you can do with the Zapp’s brand overall?
