Russell Diez-Canseco: But our own internal — Rob, our own internal expectations assume some uptick in Q3, Q4, just with seasonal volumes and always there’s the potential for hurricane season to have seem us sop up a bunch of capacity as well.
Robert Dickerson: Fair enough. Fair enough. Super.
Russell Diez-Canseco: Thanks, Rob.
Operator: The next question comes from the line of Ben Klieve of Lake Street Capital Markets.
Ben Klieve: Congratulations on a great quarter. Two quick ones from me. First, on the various dynamics that you’ve been talking about with kind of choppiness in volume and inventory expectations over the next couple of quarters. Can you talk about how all these dynamics are informing your outlook for bringing in new farmer suppliers here throughout this year and into next year to provide additional supply in ’24? Are you slowing that down? Or is that continuing as expected?
Russell Diez-Canseco : Yes. Thanks, Ben. So we sort of start working on those plans about two years in advance, and that lends itself to that long-term through-cycle mentality that we use when we kind of plan everything we do. We have to make a final call about a year in advance of the demand. So the purposely vague answer is we’re planning now for the supply we need a year from now. And we’re adding — we add farms throughout the year and throughout the life of our company. But the reality is to tell you how much we’re adding is to signal what we think our growth is going to be next year, and we’re not quite ready to do that.
Ben Klieve: Okay. Fair enough. And then one other one. Pete, on your prepared comments, you discussed that your SKU volatility was in excess of your peers for most of your products, which certainly tracked. I’m wondering if you can elaborate a bit on the categories that — on the SKUs that are — that have a lot of you that are below some of your counterparts and kind of how that is informing your strategy here for future product expansion.
Peter Pappas : Ben, I’m not quite sure I understand the question. I’m sorry.
Ben Klieve: So in your prepared remarks, you said that there are some SKUs that were — that most of your SKUs were outperforming on a velocity basis relative to counterparts in the shelf, and — which implies that some are underperforming. And so I’m curious if you can elaborate a bit on the dynamics that are leading to certain SKUs having velocity below kind of what you would probably be expecting. And then if you can elaborate on the dynamics behind that and how that’s informing future growth strategies in different product categories, that would be great. If that still doesn’t make any sense, that’s okay.
Russell Diez-Canseco : Ben, it’s Russell. The thing I’d say is, we, like any company in our category, have a portfolio of SKUs. We’ve got our heavy hitters, our high-volume SKUs, which are going to show up in just about any retailers top 5, if not top one list. It’s things like our core dozen black carton conventional pasture-raised eggs. Our organic brown carton dozen pasture-raised eggs. And then we’ve got 18-count versions of both of those. I think those are probably our top four most popular SKUs. We also have, like any other CPG company, a longer tail of items that move more slowly than those things. For example, some retailers, for strategic reasons, have asked us to sell them, what we call, off-sized eggs, jumbo eggs or media eggs, for example, or perhaps in some retailers, they’d like to see a smaller pack size, for example, apartment dwellers in Manhattan, sometimes for a 6-count because a single household may not eat 12 eggs in a week.
Those items perform the need of that retailer, but they may not be in our top 4. They may not be the items we take to any retailer across the country. But for specific retailers in specific geographies, they’re wonderful. That’s all we meant by that. We’ve got some clear winners that no matter where we go, these top four items should be in your set. We’ve got a long tail of more specialty items, blue eggs, regenerative egg, 6-count, medium, jumbo, that belong in some, but perhaps not all stores.
Ben Klieve: Got it. Got it. That’s helpful. Congratulations again on a really good quarter, and I’ll get back in line.
