Bill Morachnick: Hey Scott, it’s Bill. Thanks for the question. Yes, I mean to – obviously, there is seasonality built into Q4. But just looking at the metrics that we can see as it relates to D2C, I feel very confident that we are taking all the right steps on D2C that are going to bear fruit for us as we move forward. Jessica was referring to the IT stack earlier. That’s really at the nexus of where the prioritization is because until the IT stack is sorted out, you can’t layer on top of that the marketing stack that you use to do all the things that were in the process of deploying for customer acquisition, generating loyalty, incremental sales, subscription, etcetera. So, we have made really good headway on reconfiguring the IT stack initially so that we have been able to deploy a new CRM system, which candidly has been lacking.
It’s very difficult to do targeted marketing without a proper CRM infrastructure, so that’s now in place. The next – I call it the next big unlock is the Shopify platform, so a new e-commerce platform, that we will deploy in Q2 and with that comes a whole set of tools that allows us to do things that we are not able to do today.
Scott Fortune: Great. I appreciate the color there. Real quick on the MLB extension through 2027, congrats on that, but can you provide any additional color there and kind of expectations with the partnership moving forward? That does kind of smooth out your costs over the next 4 years from that standpoint, correct?
Bill Morachnick: Yes, that’s exactly right. So, all of our partnerships, whether it would be MLB, PLL, FC, or others, are multiyear partnerships that we engage in or attempt to engage in. So, with MLB, let me first just say, they are a fantastic partner and their willingness to work with us for – to create win-wins is greatly, greatly appreciated by us. So, by extending that out by a couple of years, our existing agreement, as you mentioned, it flattens out the cost structure associated with it, but it also gives us time to work together, to come up with the type of activation that’s in both parties’ interest to really drive not only sales for us, but great awareness for the MLB brand and associated in a positive way.
I would say potentially a nice improvement for 2024 is that we are not wasting a second and our activations and our strategies begin with the first pitch thrown in March, and it will end with the last out in October. So, we are really, really dialed in on all of the things that we need to do to fully leverage the sponsorship fees associated with it.
Scott Fortune: Got it. And a follow-up on that kind of you are doing a lot of rebranding here or kind of rationalize the brands, whatever you call, but kind of what ReCreate, but the overall product portfolio, you continue to expand that with the CBD and keep our offering there. But you have always had high-quality products and it really serves the health and wellness. But more importantly the healthcare practitioners channel, kind of step us through kind of consolidation of CBD Medic and CBD Clinic brands under CWEB, and are you looking to put more emphasis on medical channel, or can you expand there? And just kind of a follow-up around the ReCreate and the strategy for that price product now to further penetrate kind of the sports and lifestyle that you mentioned on MLB side that would be helpful.
Bill Morachnick: Yes. Sure, Scott. Let me break those apart a little bit because a couple of things in there. I just want to make sure I hit on them all kind of independently there. So, on the branding, what we are referring to as two components, it’s a redesign of the branding architecture, and it’s a refresh of the brand look and feel and some – they sometimes get conflated, but it’s actually two different things that will come together. So, as you mentioned CBD Medic, CBD Clinic, ReCreate and our core brands, what we are in the process of doing and stay tuned, we are going to be talking about this very soon when we are able to show this to you. Our philosophy on this is we have kind of showed up with different looks and feels across those.
We want that to have a common look and feel. So, if you were to see it on a shelf, you would say, I got it, that’s Charlotte’s Web. I know then there is common trade dress across it, not that they all have to look alike, but it looks like a common brand family. So, that’s a big exercise that we are in the process of doing. For a whole host of reasons, but as you can imagine, you get a much better return on marketing investment if you can leverage a singular brand across multiple products. So, that’s the spirit of why we are doing it. As it relates to ReCreate, what we are doing is we are pulling to ReCreate products into Charlotte’s Web branding architecture, stay tuned for what that naming will look like. But think of it as the same product, same price points, same intentionality with it, but within a different look and feel.
To your other question, I think around a bit of our channel strategy, we are continuing to refine our go-to-market strategies as it relates to B2B, so any of those retail partners. We believe that medical is a phenomenal opportunity. And we have got really great growth potential that we are going to lean into more and more in these coming quarters, so more to come on that.
