They will make or break the volume number that we’re going to see in 2023.
David Burwick: Okay, Nadine. I’ll take up the second question about how can Truly succeed in that space. I’d say first of all, our consumers have asked us for a long time to get into into the Vodka Seltzer or Vodka soda space. And when you look at the category, if you look at RTDs, it’s about $1.6 share of total beer. Half of it is the Vodka Seltzer space. So that will be high noon and neutral to be the top to top 2 brands. It is clear overlap in the high end of Hard Seltzer and the other brands. We have a large consumer base. They want us to go. We develop great product. And actually, it is — it’s a different approach because if you look at the channel distribution, it’s really driven by the liquor class of trade that’s about 45% or so of the total.
Hard Seltzer goes through a liquor class of trade, which is a little bit different. A lot of it is mostly independent. 90% are independents. It’s very cluttered. Sales per point is lower, prices are higher. It’s a different approach. So we’re going there. We didn’t — we don’t expect it to be an overnight success, but it’s something that other brands have 5 or 6 years has started us so we’re going. And if you look at the numbers, it’s way early, but fairly high newness that is number one. neutral is just a smidge above us as #2, and we’re #3 in the box of seltzer space. So in just a few months, and we really haven’t even brought what we’re going to bring to the table yet. So we think we can compete. And again, we’re not expecting it to be something that’s going to be hugely material right away, but it’s an area where our consumers want us to go where consumers are sourcing their occasions from Hard Seltzer anyway, and we need to be there.
And the last thing I would say about this is that we’re in with 1 variety pack right now. There are 1,100 SKUs in RGDs right now. That’s more than Hard Seltzer has. So RTDs are 1/5 the size of heart cells, so they have more SKUs, they have more brands. You cannot stand out with 1 variety pack, which is why we announced today that we’re going to have 2 more variety packs. And because you have to create presence on the shelf in order to compete in this space. So we’ve learned over the last several months, what we need to do to compete well. and we’re going to start to implement that and less as we get into the second quarter.
Operator: And the next question comes from the line of Vivien Azer with Cowen.
Vivien Azer: I was hoping just to pick up on the thought that you just offered in terms of what consumers are telling you about how far truly can reach. And if you could just touch on Truly Vodka versus Truly Vodka soda. How much confidence do you have that the Truly brand can straddle so many different categories, Hard Seltzer, Ken cocktails and the fill spirits entirely.
