Ken Goldman : Thank you.
Operator: Thank you. One moment for questions. Our next question comes from John Baumgartner with Mizuho. You may proceed.
John Baumgartner: Good morning. Thanks for the question. I wanted to stick with North America and the comments on promotions, but more so on delivery. Is there – Carlos, you highlighted the ROIs you’re seeing and you touched on the quality promos a bit, but to dig inside a bit more deeply versus history, how are you seeing the lift sort of changing from quality promo programs, the feature, the display relative to the pre-inflation era? Are you seeing a greater role for price reductions going forward? Does quality programs still have the same degree of lift in terms of the influence of those drivers? Just trying to get a sense for, as you lean into promo more in the back half and programming, does pricing need to be a larger driver at the margin than you would have thought relative to feature and display a couple of quarters ago?
Carlos Abrams-Rivera: John, thanks for the question. I’ll say, I think some of the parts were a little hard to understand, but I think I got the gist of your question. Related to the second half that we think about promotional level, and we have said this in final calls and within our guidance, there is a step up that we’ll do in promotional levels as we go into the second half of the year in selected categories, but always with a disciplined approach of positive returns. What I would add to is that, one of the things that we are able to do with our promotional investment to improve the effectiveness of those things, of that investment, is to make sure we level the entire portfolio and that we are thinking through how do we make sure we have the right product selection to the right audiences.
So for us, when you look at our, whether it’s back to season, and we combine the different kind of categories that we can bring together, as we think about back to school in which we can bring in Lunchables and our Capri Sun business together, that idea of us being able to kind of go into the retail environment and actually leverage the entire scale of our business allows us to be more effective in terms of the returns of those promotions. So it’s both, looking at the true ROI, through the AI management tools that we have, as well as maximizing our presence in store, leveraging our scale. The last thing I will say is, as we think about going into the second half of the year, we’re also seeing consumers behaving in a way, in two different kind of camps.
They are the consumers who are going to be looking for those more, I would say larger packs in which they are going to look for the value by looking at the total size of the products that they are going to get and why we are introducing more products in the club type of packages, whether that is in our Mac and Cheese, in our Lunchables and you see that that is focused on driving that particular type of behavior with consumer effectiveness. There’s also going to be a number of programs specifically to making sure that we are keeping consumers who are also focused on the cash flow within our categories, which is why we also have been introducing more of the smaller package, more of the dollar type of products that allows us to maintain our consumers within the category for longer.
So we’re approaching that in those two prongs, at the same time, always looking at making sure we have the right ROI in every investment that we make.
John Baumgartner: I apologize for my connection there, but just to clarify, if we think about price promotions versus sort of non-price, the quality, the feature, the display, have you seen any sort of changes in terms of how deep you may have to go on price reductions going forward or do you think that kind of quality promo, you’ll still see attractive lift? You don’t really have to get deeper on pricing.
Andre Maciel: But what we have said Andre here, what we have seen throughout these past three years is that we can have very attractive lifts without having to go as deep. And I think that that, when you look across, at least based on data from my review [ph], that’s what we have been observing for ourselves and I think that still remains true moving forward. The other thing that as Carlos mentioned, that I think moving forward we’re going to start to see more and more increasing importance of mix, and that’s vis-a-vis only doing more promotions or playing with these prices. So I think we’re going to be hearing a lot more about mix-related actions.
John Baumgartner: Okay. Thanks for your time.
Miguel Patricio: Thanks, John.
Operator: Thank you. One moment for our next question. Our next question comes from Bryan Spillane with Bank of America. You may proceed.
Bryan Spillane : Hey, thanks operator. Good morning, everyone.
Miguel Patricio: Good morning.
