Q4 2024 Utz Brands Inc Earnings Call
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Speaker Change: Hello, everyone and welcome to <unk> quality Foods arch branch fourth quarter and full year 'twenty 'twenty four earnings conference call.
Speaker Change: Now I'd like to hand over the call to Kevin powers head of Investor Relations you May now begin.
Speaker Change: [noise].
Speaker Change: Thank you operator and good.
Speaker Change: Morning, everyone. Thank you for joining us today for a lot of Q&A session and our fourth quarter and full year 2024 results.
Speaker Change: With me in today's call are Howard Friedman CEO, Andy Jacobs our CFO.
Speaker Change: Everybody has had a chance to listen or read our prepared remarks and also of your presentation all of which are available on our investor Relations website.
Speaker Change: Before we begin our Q&A session just a few housekeeping items. Please note that some of our comments today will contain forward looking statements based on our current view of our business and the actual future results may differ materially.
Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance today.
Speaker Change: Today, we will discuss certain adjusted or non-GAAP financial measures, which are described in more detail in this morning's earnings materials reconciliations of non-GAAP financial measures and other associated disclosures are contained in the earnings materials and posted on our website now operator, we're ready to open up the line for questions.
Speaker Change: We are now opening the floor for question and answer session. If you'd like to ask a question. Please press star followed by one on your telephone keypad. Your first question comes from Andrew Lazar from Barclays. Your line is now open.
Andrew Lazar: Great. Thanks, so much good morning, everybody.
Good morning, Good morning, Good morning, Yeah, maybe.
Andrew Lazar: Maybe to kick it off I'm Howard what is your category growth assumption for fiscal 'twenty five.
Andrew Lazar: Does that outlook and bad sort of holding value share in core while also expanding value share in your expansion markets as well as the plan laid out at Investor day.
Andrew Lazar: Yeah. Thank.
Andrew Lazar: Well I think we think the category is going to be somewhere around zero to 1% next year, so call it slightly better than flattish.
Andrew Lazar: And I think it will continue and continue to progression through the year.
Andrew Lazar: To your point on our strategy our strategy remains intact, we intend to hold our core market relative market share and actually grow in expansion markets as our distribution gains and increased marketing support come through and take hold.
Andrew Lazar: Okay.
Andrew Lazar: I know, it's just a part of the prepared remarks looking for a modest headwind from price and in fiscal 'twenty five I guess, what gives you the confidence that you're building in enough flexibility in light of you know what you've called out and we've seen in the data is still sluggish category and so you know some increased competitiveness as well. Thanks, so much yeah yep.
Andrew Lazar: I think there are a couple of things that we look at first of all I think we're looking to deliver value beyond price.
Andrew Lazar: Engaging some bonus bags were looking on our price pack architecture to be able to sell up and down the price ladder. So there are we don't believe those impacts will necessarily be significant drags to pricing I think the second thing we would expect because if you think about the how price happened. This year in the category you sort of saw a progressive March to a more promotional.
Andrew Lazar: <unk> category as you went through really the mid part of the year to the end of the year and eventually we believe that will normalize as we lap that behavior is I think the category participants take stock on what is motivating the shopper to buy to buy and participate in the category, which has always been marketing innovation and having the right assortment.
Andrew Lazar: Got it last quick thing just I know you expect on the top line pretty even.
Andrew Lazar: First half second half in terms of growth any anything to keep in mind, specifically discrete around <unk> around the top line that we should be aware of just given where some of the recent data has looked like you had for the category as well as thoughts. Thank you.
Andrew Lazar: Yes.
Yeah, I think for US you have to you'll recall the January of 2024 was actually our strongest month of the year, where we grew a little over 6%. So we would we had anticipated a decline in January given the nature of that lap, which was really promotional driven we would expect to see January continue or a Q1 to continue to improve as we.
Andrew Lazar: As we go through the years largely beginning as we would've expected.
Andrew Lazar: Thanks, so much.
Speaker Change: Your next question comes from Peter Galbo from Bank of America. Your line is now open.
Peter Galbo: Hey, guys. Good morning, Thanks for taking my questions.
Debbie: Morning, Debbie.
Speaker Change: Maybe just a clarifying point to third or or an app.
Speaker Change: On behalf of all of that well.
Speaker Change: Will there be a further breakout historically of the branded salt D versus non branded downfall can you kind of breakout that you gave today on a quarterly cadence I think you said that in the prepared remarks, but you know the realignment will also allow.
Speaker Change: Allow us to better kind of track it relative to that so the scanner data. So just if theres a longer historical period at least allowed to protect us that so that would be just one one ask or are about to your plan.
Speaker Change: Hi, Pete this is Kevin absolutely, we're more than happy to provide those historical components out there in terms of the net sales breakdown for the for the first three quarters of last year, Yes, we will plan to do that.
Speaker Change: Okay, great. Thanks, and then on the back of that I promised to our actual questions in here.
Speaker Change: Howard when when do you fully lap kind of dips and spreads.
Speaker Change: The weakness that's been persisting now it feels like for maybe longer than you anticipated, but but I don't know if there's anything discrete in there you know that happened this quarter that you'll you'll lap over the next few quarters.
Speaker Change: Ah yes.
Speaker Change: Gibson and salsa and it was actually a.
Speaker Change: <unk> started to become a headwind as we had some assortment decisions last year really beginning in May is wherever you are and we should see.
Speaker Change: Lapping occur and then it will get progressively.
Speaker Change: Progressively it will progressively improve through sort of the back half of the year.
Speaker Change: Okay. Thanks, and then just the second kind of follow up there.
Speaker Change: Howard on on Tortilla chips and in particular, you called that out in the slides. It was one of the bigger kind of poor category areas of weakness.
Speaker Change: It seems like maybe there was some some channel dynamics or some some shifting that you had all within your portfolio, but.
Speaker Change: Just given the increased level of competitiveness certainly that seems like coming from your biggest competitor in tortilla chips, maybe you can address that more specifically thanks very much.
Speaker Change: Yeah, I think the issue we saw with.
Speaker Change: Tortilla chips in the quarter really wasn't an issue of lapping in some discrete choices that we've made on assortment.
Pete: Not really not been anything more significant than that Pete I think tortilla chips on the border specifically continues to enjoy.
Pete: Strong consumer reception is that I think we believe it's at a sharp price point.
Pete: We obviously have some some activity that we're now doing with bonus packs on that business as well.
Pete: Really more about that lap that we talked about in the last question really with.
Pete: December January February is really where prior year, you would've seen a lot of the consumption.
Pete: Improvements. So we are as we lap that we would expect that to continue to be strong.
Speaker Change: Your next question comes from Robert Moskow from TD Cowen. Your line is now open.
Robert Moskow: Hi, Thanks, a couple of quick questions first is.
Speaker Change: What are the big building blocks this year, we're expanding EBITDA margin.
Robert Moskow:
Robert Moskow: Given that the sale what gives you comfort that even though sales decelerate a bit.
Robert Moskow: Why is it that margins are still on track to expand in and you said even exceed in 2026 so.
Robert Moskow: How do we just associated with these two things from each other.
Robert Moskow: And then I just had a follow up.
Jay: Hey, Rob this is Jay.
Speaker Change: So what youre going to see in 2025 very similar to 'twenty four.
Speaker Change: Opportunity program remains pretty strong we delivered about $60 million of productivity in 'twenty, four and we have line of sight.
Speaker Change: 250 million or more.
Speaker Change: Sure.
Over the three year period of 24 through six.
25 is going to be similar to what we called out at Investor Day, the algorithm is going to be.
Speaker Change: Productivity sort of generates gross margin you make investments in our supply chain capabilities and then net out.
Speaker Change: About 100 basis points.
Speaker Change: 80 ish basis points of EBITDA margin expansion.
Speaker Change: Okay, but maybe is there anything specific that you can call out as to what's what's giving you such.
Speaker Change: Such strong productivity is it like capital investments at the plants is that the new distribution center is there any like one or two things that really stand out.
Speaker Change: Yes, so I'll start.
Speaker Change: Sure you should live in all of the above we are making.
Speaker Change: Capital investments.
Speaker Change: Network, you've seen that do.
Speaker Change: To do that in 'twenty, Florida will continue at that pace in.
Speaker Change: 25, the capital investment is driving automation is driving more capacity in the plants.
Speaker Change: And sort of leveraging our fixed cost of spreading our fixed cost.
Speaker Change: Yeah.
Speaker Change: That's one piece of it and then we have done a lot of work around procurement.
Speaker Change: Logistics.
Speaker Change: We just opened.
Speaker Change: RBC distribution center.
Speaker Change: In December so that's consolidating.
Speaker Change: Multiple buildings and inventory in there so a lot of work that's going into the supply chain a lot of heavy lifting that was done in 'twenty four.
Speaker Change: That process should continue in 2005.
Speaker Change: I'll just add on two things I think we feel great about the project progress we've made in our supply chain optimization and network optimization efforts and really as you will recall it was predicated on a couple of things one was getting our footprint in order.
Speaker Change: Which we are ahead of schedule on two was to start to make investments in automation and actually making sure that our distribution network as efficient as possible to get the total delivered cost lower across the network.
Speaker Change: You look at things like the RTC or you look at a lot of the automation that we've done and you look at sort of the capacity expansion that we've been doing it actually allows us to be able to produce products closer to where they are sold as well. So we're taking.
Speaker Change: Product often off the road, we're actually doing it in a far more efficient and effective way and a lot of that has really been coming online over the last call. It back half of this past year and will continue into the first half of next year and I think the last thing I would say is we are getting better at understanding our business is understanding demand and as we.
Speaker Change: Do that Theres, some waste that comes out of the system that are benefit. So just make us more efficient overall I think we're ahead of schedule on supply chain I think we've done a lot of good work and frankly, we still have probably another year to year and a half consistent effort that we have to apply to continue to make that accelerate before we get away.
Speaker Change: A much younger more modernized more efficient network overall.
Thanks, My follow ups.
Speaker Change: You put it in the prepared remarks, but is there an outlook for the the non branded side of the business. You know it was down I think 18% in the fourth quarter I think that includes the dips also so should we expect another double digit decline in 'twenty five.
Speaker Change: Impacting your sales.
Speaker Change: The short answer is no you should not expect a another double digit decline impacting our sales part of it was the lap that we saw on our dips and it's also a business, which we control and part of it has been on the non branded side of our business as well, which we've been carefully managing as we go but I feel like we're in a pretty good place that those businesses.
Speaker Change: We will continue to be important for us in our consumer and our iOS, but that you should not see that type of decline fluid.
Speaker Change: Okay. Thank you.
Speaker Change: Thank you.
Speaker Change: Your next question comes from Michael Lavery from Piper Sandler Your line is now open.
Speaker Change: Thank you good morning.
Speaker Change: You touched on some sort of price pack architecture adjustments can you, maybe just unpack that a little bit and maybe touch on some of the timing and how that may look for the consumer end.
Speaker Change: But also maybe what if any margin impact.
Speaker Change: Some of those.
Speaker Change: Incremental.
Speaker Change: Skus might have.
Speaker Change: Yes.
Speaker Change: I. Appreciate the question look I think there are a couple of things just in terms of credit it's really a price pack architecture and it's also a class of trade question right and so I think our price pack architecture, what youre seeing as to what you see right now in the marketplace. We have bonus bags out on potato chips, and tortilla chips to be able to add value to the business is basically 20%.
Speaker Change: Or.
Speaker Change: The business we're also.
Speaker Change: We continue to expand the distribution we've been fortunate we have a lot of the right pack sizes, and making sure that we are putting appropriate emphasis on sort of lower price point in.
Speaker Change: Certain classes of trade to make sure that we're hitting critical price thresholds and.
Speaker Change: Steps on the ladder. So those things I think we're really just pushing more.
Speaker Change: The other thing I would say is youre going to see us actually at the high end of the at the high end of the price ladder as well when you think about club, which took on a new low C plus with convenience actually will help us be able to read a little bit better.
Speaker Change: So youll see a step up in that selling there as well so you'll see it I think across the entire ladder in terms of the margin I'll, let Jay answer, but I think our view is that our guidance largely contemplates the impact of margins.
Speaker Change: Yes, it does we have carefully.
Speaker Change: The mix impact and put that in our models.
Speaker Change: Okay, Great and just a follow up on distribution expansion.
Speaker Change: Let me touch on that.
Speaker Change: What expectations might be baked into guidance, especially for for maybe geographical expansion.
Speaker Change: Sort of investments might be needed to move let's say further west for example.
Speaker Change: Yeah. So one of the things I think you saw through the rest of last year as we continue to see a lot of.
Speaker Change: Interest and enthusiasm in our portfolio as we continue to work with not only mass and club, but obviously larger national grocers.
Speaker Change: Regionally and so I think what you saw at ultra the back half of last year really.
Speaker Change: September through the end of the year as we started to gain distribution.
Speaker Change: Really kind of building through the end of the year and so you'll see more out west is going to see a continuation of.
Speaker Change: The same geographies that we've talked historically about we've invested in Texas, we've invested in Michigan, and we've invested in Colorado as well.
Speaker Change: And so youll see more of that.
Speaker Change: This year and.
Speaker Change: I think what you saw in the last quarter.
Speaker Change: So as you have seen our powerful brands and our expansion geographies growing quite nicely.
Speaker Change: So we would expect to see more of that in the year to come in terms of.
Speaker Change: And what kind of spending you need to do remember, it's not as much a promotional price point, because we're relatively new to the market. It's a lot more about consumer awareness and Thats. How you swipe part of why you saw that step up of 70% in the fiscal year last year and our initial guide as we gained distribution. We have we will then add incremental advertising too.
Speaker Change: Those markets to make sure that consumers can find our brands.
Speaker Change: Okay, great. Thanks, so much.
Speaker Change: Yes.
Speaker Change: Your next question comes from Robert Rob Dickerson from Jefferies. Your line is now open.
Speaker Change: Yeah.
Robert Dickerson: Great. Thanks, so much good morning.
Speaker Change: I guess just quickly.
Speaker Change: I just wanted to kind of.
Just your perspective on any channel dynamics, taking.
Speaker Change: Taking place there that just got it.
Speaker Change: How do you view C store channel.
Speaker Change: So we think there could be some improvement hopefully as we get through.
Speaker Change: I'm kind of more of a seasonal peak period.
Speaker Change: As we head into summer.
Speaker Change: Consumers are by maybe a little bit more the bonus bag.
Speaker Change: On the smaller side of it.
Speaker Change: The channel.
Speaker Change: General consumer behavior on purchase rates.
Speaker Change: Yeah.
Speaker Change: I appreciate the question a couple of things I think first of all I'm going to kind of tick through a couple of channels a.
Speaker Change: A couple of a couple of things I think we feel really good about what's been going on in traditional grocery we continue to.
Speaker Change: Outperform there and it continues to be one of our biggest bigger.
Speaker Change: Biggest.
Speaker Change: One of our one of our biggest growth opportunities as we go forward, we understand it well, we performed well in the category and our brands.
Speaker Change: Work extremely well.
I think similarly, youre going to see continued expansion and movement in club, we're working very hard with our club.
Speaker Change: Partners to try and make sure that we have the right assortment items and make sure that when consumers want to pay for the inventory that they can get our products, where they are selling there.
Speaker Change: There's no question that C store has been more of a persistent challenge for us through the course of the year for decisions that we made in the past and we are not near what we have not moved as quickly to get those things sort of be reflected in the data that as we would like we would expect that to improve as we go through the year and we would expect that challenge that we're trying to.
Speaker Change: Modest growth.
Speaker Change: When we when we have this call a year from now.
Speaker Change: Terms of the consumer behavior.
Speaker Change: Thank you continue to see value seeking you continuing to see promotional activity and promotion shopping and you continue to see them chopping up and down the ladder. If you are looking for an absolute price point at a low relative cost you could find that if youre looking for a lower per ounce cost. When you can afford the cost of the inventory you can see that as well.
Speaker Change: <unk>.
Speaker Change: The one thing I would certainly say as the promotional mix and the category has been interesting as well as you see household penetration.
Speaker Change: And the category being up for the year.
Speaker Change: Really been buy rate as consumers or for a holiday there doing multi by purchases and taking the inventory and consuming it and in other cases, maybe buying it and actually then being out of the market for a minute, which is causing promotional efforts to be a little bit more lumpy that I think will kind of sorted itself out as we go through the year.
Okay, Great and then maybe just a follow up.
Speaker Change: Last point, we did hear from.
Speaker Change: Okay.
Speaker Change: Earlier this week.
Speaker Change: So and quite frankly, a number of food companies that I spoke to some of that Lumpiness right.
Speaker Change: And the promotional spend in place.
Speaker Change: And then I hear you also speak to the price pack architecture, who are introducing new skus some smaller pack sizes.
Speaker Change: Is that also how you're viewing it quite up collectively.
Speaker Change: I'm talking about.
Speaker Change: Price effects, but also sounds like maybe you know its just more efficient to not be promoting as much given.
Speaker Change: Given the Lumpiness of labor.
Speaker Change: And real demand to other product offerings I don't know if thats okay.
Speaker Change: Especially the fortunate.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: Look I think that.
Speaker Change: As you think about price pack or if you're a shopper who's going with a fixed amount of money in your wallet.
Speaker Change: You want to make sure that youre hitting an absolute price point, because that's the fixed amount of money. That's in your wallet needs to cover all of your demands which is why.
Speaker Change: Making sure that we are shy sharp on a.
Speaker Change: In absolute price point basis is important for us as we move I think when you some of that Lumpiness I think that we're seeing is when you. When you look at multi buys you have to make sure that it's at a price point in that.
Speaker Change: Nothing to assortment, which we are fortunate to have.
Speaker Change: And by a range of products in that in that.
Speaker Change: Multi purchase occasions.
Speaker Change: I think that's kind of what the what the Lumpiness is I'm not sure we've always been a little bit of a relatively speaking lower promoted.
Speaker Change: Category, because brand building and innovation has always been so important for the shopper in these.
Speaker Change: In this chat, which I still think will remain the same.
Speaker Change: I think I think promotional intensity will normalize as we go through the year and I think Theres no reason to believe at least in my opinion.
Speaker Change: This category is going to be fundamentally different moving forward I think innovation communication and <unk>.
Speaker Change: Promotional pricing will always remain important along with obviously quality and availability.
Speaker Change: Alright, so but thank you.
Speaker Change: Thank you.
Speaker Change: Question comes from John.
Speaker Change: Bob.
Speaker Change: Sir.
Speaker Change: Mizuho Your line is now open.
Speaker Change: Good morning, Thanks for the question.
Hey, Jonathan.
Speaker Change: Howard I wanted to touch on promotions for 2025 and in particular, the planned investments in display and non price promo at the category level are you expecting or seeing I guess any notable changes relative to history in terms of the allocation provided the salty snacks from retailers given the softness we've seen either in terms of Cui.
Onto your format and then secondly, as you ramp innovation and diversify the pack sizes and expand and seasonal are there any notable changes that we should expect from your activity year on year in 2025, whether it's increased concentration certain channels are a larger concentration for certain events any insights there.
Speaker Change: Yeah. So a couple of things John I have not we have not experienced any change sort of in the customer allocation for display activity and if anything I think one thing that I hope youre seeing because we are selling them as youre seeing a lot more display activity and end cap activity from us in both our core and expansion markets.
Speaker Change: It's important for us, especially.
Speaker Change: As we start to compete not only on price, but also obviously on availability and in expansion markets is a great way for us to enter and start to gain the consumer traction that we need.
Speaker Change: So we have not seen any change in display activity both in terms of like around the perimeter as well as end caps.
Speaker Change: And I think part of what is what continues to be a.
Speaker Change: A positive for this category is again household penetration for this category is up on the year, which I think is.
Speaker Change: Something that we all should be mindful and proud of as we go it continues to prove that consumers want the product in their pantries.
Speaker Change: In terms of kind of how do we think about the year coming I think what you'll continue to see is we will continue to compete up around our core four.
Speaker Change: Obviously Boulder Canyon continues to be a brand that is gaining traction given it's neutral.
Speaker Change: Nutrition profile and non seed oils, we continue to see that business is growing and obviously passed the $100 million. This past year, I think youll see more activity there and more classes of trade as we go forward and I think you'll also see from us.
Speaker Change: Some innovation that we're that we're proud of and that we expect will continue to allow us to drive consumer interest probably on the on the on this other.
Speaker Change: Other branded Salt business. We also are I think in a really good place and allow value.
Speaker Change: Seekers to be able to participate in other products that we that we sell on other brands should they should they choose to do that which we continue to believe that they will.
Speaker Change: Okay, and then in terms of the broader portfolio I know, it's early to speak to M&A in terms of activity, but I am curious your last couple of deals focused on capacity and routes to market as you look at the broader category at this point and some of the changes do you think the portfolio might need to take another stab or a larger stat in the in the future at at brands that are <unk>.
Speaker Change: This is better for you or do you feel as though with the scalability of Boulder that sufficient to grow organically in that in that space.
Yeah. So first I'll say I feel great about our portfolio I mean broadly speaking I think we have assembled and obviously.
Speaker Change: Over the last 15 years, we've assembled a portfolio of brands that we feel great about and consumers love them.
Speaker Change: And they have a lot of elasticity that we can go do in terms of like what the consumer would be interested in buying from those brands.
Older. Obviously is one of them and is certainly a place where we believe that it continues to have the flexibility to enter into different subcategories and into different classes of trade and we will continue to do that I feel the same way frankly about about Hudson on the border and some of our other.
Speaker Change: Brands, where they do have permission to travel and they have permission from consumers to be able to respond to our marketing message as well as incremental innovation, which you'll see.
Speaker Change: In terms specifically of do we need to go should we go and acquire a brand look we will always pay attention to what's going on out in the marketplace and if there's something out there. That's interesting. The first thing. We ask ourselves is are would we be good owners of it and the answer is yes to that then we will do some work but.
Speaker Change: I don't necessarily feel like there is a brand out there at the moment that we have that we would look at and say boy. We don't think we can do that within our existing portfolio of whether it's better for you or.
Speaker Change: Value I think our portfolio is pretty solid and pretty excited about it.
Speaker Change: Thanks Howard.
Speaker Change: Thank you.
Speaker Change: Your next question comes from Jim <unk> from Stephens, Inc. Your line is now.
Speaker Change: Hey, guys. Good morning, Thanks for taking my question, Hey, Jim I wanted to maybe circle back to the beginning of the conversation just with the outlook for for 25 and the category kind of.
Speaker Change: Flattish to up modestly.
Speaker Change: If you think about.
Speaker Change: You guys did in 24 with both household penetration and the repeat rate increasing simultaneously.
Speaker Change: How should we think about that in in 'twenty five because I would think that you know as you add new households that that might have a negative impact on the repeat rate, but obviously, we didn't see that.
Speaker Change: In 'twenty four and so just.
Speaker Change: Maybe give us some detail around the composition there what's driving those both up at the same time and as that in the core market expansion market just any color around that would be helpful.
Speaker Change: Yeah. So.
Speaker Change: So I agree with you that the.
Speaker Change: Marketing math would always say that as household penetration rises.
Speaker Change: Super pleased that our household penetration is achieved.
Speaker Change: And all time high for us.
Speaker Change: Every time, I say things like that it makes me nervous I'm not going to lie but.
Our household penetration is very strong.
Speaker Change: We would expect for naturally that consumers some consumers will try it and they will no longer be interested and thats not what were experiencing we're actually seeing both both metrics moving together higher and I think that speaks to the quality of our products and the diversity of our portfolio. So consumers can come in and try a potato chip and then.
Speaker Change: We can offer them a whole range. Obviously part of that is also driven by our expansion geographies and what where we've been able to do on end caps and being able to present to our entire portfolio. So I think it goes to the quality of the product and the strategy of how we're entering markets of why those two things are traveling together.
Speaker Change: I would also say that we feel very good about our plans for <unk>.
Speaker Change: Expansion markets.
Speaker Change: Going forward into 'twenty five obviously, we've done some work in the <unk> quarter four of this past year, and we would expect a lot of that momentum to continue into the year and we feel pretty good about the distribution opportunities that we have in our core markets as we've always talked about our core markets for us have or have always been more expansion markets for.
Speaker Change: The other three power brands and what we're gaining is distribution and those were shifting the assortment a little bit on those brands and bringing them into the core. So those two things together, we will continue to be centerpieces to our expansion strategy I think we feel we feel like next year should be another strong year of household penetration gains and households overall.
Speaker Change: Okay, Great and then maybe if I could shift gears, a little bit, but still tied back to that first question.
Speaker Change: In the.
Speaker Change: The data and the slide deck that you provided on Boulder, obviously <unk> in the real World plus data.
Speaker Change: Over over 100% over the full year trend.
Speaker Change: Talk to what's driving that outside of the natural channels is it just better shelf placement and appearing on shelf and consumers are.
Speaker Change: Becoming aware of it or do you see higher repeat rates, there and the guy that back.
Speaker Change: Can you be do you have the data available offer up.
Speaker Change: Which brands you see the highest repeat rates on in that power brands portfolio.
Speaker Change: Yeah in terms of the repeat rates I, probably need to get back to you.
Speaker Change: With an answer on but I think that what youre seeing on older. There's two things happening. One is we are gaining distribution as consumer interest in the products.
Speaker Change: <unk> to grow we're obviously, having great success in expanding our distribution of that item, but probably more exciting.
Speaker Change: Exciting is the fact that it's a velocity led growth story. So yes, we're gaining distribution, but it is actually accelerating.
Speaker Change: Accelerating and certainly we are proud of the avocado oil chip in.
Speaker Change: Get a little bit of in the last four weeks. It's January so I've always wanted to be a little bit careful but it was a number one chip in the natural channel for the period. So we see the consumers loving the item velocities are very strong and I think what we're now seeing is as more retailers are interested in looking at that piece of the portfolio of better for you and.
Speaker Change: Avocado oil and non seed oils boulders, obviously square that center in in that trend with a great product that actually delivers on taste and affordability.
Speaker Change: Okay.
Speaker Change: I'll pass along thanks for the color.
Speaker Change: Yeah.
Speaker Change: They don't have any questions at the moment, we are now closing the floor for questions. Thank you. So much for attending today's call. You may now disconnect have a wonderful day.
Speaker Change: Yeah.
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Speaker Change: Okay.
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Speaker Change: Yeah.