The Simply Good Foods Company (SMPL) Earnings Call Transcript & Summary

All right. Let's keep the show going. So next session is going to be bitter sweet. On one hand, I'm thrilled to have The Simply Good Foods Company on stage once again this year. Those who follow the company since it became public know that is quite simply been a better than good fundamental story and simply a great stock to own. And we're fortunate to have on stage for the first time this year, the company's President, COO and CEO, Geoff Tanner. The bidder side, however, is that today, we say goodbye to the one and only Joe Scalzo. The man who deserves credit for guiding the company on such a fantastic journey. So without further ado, let's sit down with the team and talk about what's next.

So Joe, let's start with you -- but Joe, what's next for you? You're bowing out like -- tell me like, first when is your last day and what are you going to do after that?

Orally, I'll step down as CEO in early July, moving to Executive Vice Chair role for at least another year, probably part-time on the business, just helping Geoff, with the transition of the business over time. I'll chase some passions I have, not have to go to the gym at 6:00 a.m in the morning, do some things that I'd like to do. And before I decide kind of what the next tractor is.

Okay. I think we're all going to want to live by vicariously, so you keep us posted on the story and then journey. And Geoff, those of us who followed Smucker know you, particularly to know you have to show up at the Analyst Day because you think you're not showing up very often on public conference calls or many of this type of circuits, at the Analyst Days, where we've had opportunity to get to know you. So I think there's a limited cohort of investors who've actually attended those. So give us your back story, tell us where you've come from, and then maybe closer look why are you here? What are you here? Aside from obviously, the role of CEO.

Yes. It's great to be here. So I have worked in food and beverage, mostly in North America for about 20 years. My most recent role was Chief Commercial and Marketing Officer at the Smucker Company, where we architected -- I hope you would agree, a bit of a turnaround of that company, Jason. Background is in marketing, general management, innovation and more recently, sales, kind of taking myself as a growth guy with 1 foot on the brand side and 1 foot in the customer side and increasingly looking at how to bring those 2 worlds together that I think is an emerging space. And obviously, we deliver the quarter, get the right to grow the business, generate the fuel, et cetera. What drove me to the company -- it's obviously very aware of Simply Good Foods had not to be within everything Joe has delivered. I worked in a previous life with some of our Board members, Jim Kilts and Dave West, then when I was looking at the next chapter of my career and looking for growth companies, this one just stood out on every dimension. The category that is in the early innings. I'm sure we'll talk about that. The brands have proven they can travel, the asset-light model means you can follow the consumer as opposed to trying to convince the consumer to follow what you can make. The strong commitment to marketing and innovation, all those factors just screams growth and runway. And so as such is a huge opportunity. And then I got to meet Joe. And I'm thrilled Joe is not going anywhere. It's one of the first things I said to Jim Kilts completely keep Joe around me -- can I have a really orderly transition with Joe. So that's what brought me here.

Yes. And you were -- before Smucker, you with Del Monte, right? And that's where you were.

That was the Dave West. He was the former CEO of Hershey and the Jim Kilts connection.

Yes. The long time with that organization between Del Monte and the transition of Smucker, so this is quite the adventure for you, breaking out. You mentioned categories in early stage -- that's interesting. I guess, I think about your business still is a bit of a health and wellness bars and shake business. And those aren't new categories. They've been around for a while. So what do you mean when you see categories in early stages?

I think if you look at the grocery store in the U.S., most categories have high household penetration. They're in the high 80s and low 90s, mature brands where it's mostly a share gain, okay? So that's my point of reference. You look at nutritional snacking. And I think it's a relative teenager compared to those categories, also penetration is in the low 50s. And we're just getting started, I think, in terms of the product offerings we're bringing. So yes, the category grew up in shakes and bars. But what Quest has been able to do, for example, in Salty shows the potential of this category to break well beyond as we see it today, and retailers see it too. So this is week 7 for me, so early, but I've met with most of our customers, they see the growth opportunity. And they're looking to us to provide that leadership and build plans together to grow that into much more of a destination. So I see nothing but category runway.

Okay. And you're in the part of the store that you referred to as -- what's that, HABA, the health and beauty.

Health and beauty.

Yes. Yes, yes, exactly. It's a different aisle. Is that a gating factor in terms of like that 50% household penetration. Can you continue to scale? Will be in there? Or do you have to break out and go like, if you want nutritional snacking to have those types of penetration, do you have to go where snacking is.

Early for me, so week 6, but I don't -- I think we can build it where we are today. I like our position in that category. I would rather build it from a position of strength. It helps to be category advisor. I mean that relationship with the retailers, it probably matters more, I think, than ever before. So it's up to us. We partner with retailers to create the space, optimize the assortment, use combined media and analytic capabilities and build that as a destination. What would worry me is if we start trying to show up around the grocery store, we're the small player in large aisles against large competitors, and that scares me. Might we push for some situations where the secondary display, yes, sure. We've got some of that going on with Kroger right now, and it's working fine. But my orientation, I think, Joe, feels the same way, build from a base of strength.

Yes, we've learned in -- with Atkins and with Quest, where you enter different part of the store with a product, where you don't have scale. Your knowledge is important to that aisle, to that buyer, to that retailer, yet difficulty gaining traction. So the [indiscernible] business on Atkins 7 years ago, the pizza business on Quest, successful businesses, but you lack scale and importance in those aisles. So I'm completely where I've been where Geoff is, from the very beginning. Scale profitability really important. Our role in that aisle for retailers is to bring -- if you think of the aisle, the aisle is long purchase cycle, personal care products, basically, cough/cold, hair care, oral care, so they don't get frequent shopping occasions. So our category is actually a foot traffic driver into a very profitable, important part of the store for retailers. So they use it that way, right? They look at us as building market basket for them. So you don't give that up, right? You just continue to figure out how to get more space as you grow the category. And I'm kind of were Geoff, lots of runway for growth. I've been in the business now for over 10 years. We are in the low 30s in-house category household penetration back then. We're in the kind of mid-50s now. So you're seeing 20 points of growth. There's another 40 points coming, doesn't matter how do you capture? How quickly can you capture and who's going to win the game of capturing it. I like Geoff's hand.

Makes sense. So you're diversifying across categories, and we'll touch on this a little bit more, but you're diversifying with 2 brands, 2-brand portfolio now with Quest and Atkins, which I think everyone in the audience knows -- that's the 2 brands. They have 2 different trajectories right now. Quest has been absolutely on fire. I think it certainly exceeded my expectations. I think you guys had high expectations. I suspect it's also exceeded yours. Tell me about the drivers of the success. What's the magic there? And like it's a brand that's proving to have very broad shoulders and be able to extend it for places like what have you learned from that? So let's give you a lot to chew on. Take it as you want.

I'll start and then I'll turn it over to Geoff, exceeded our expectations. It was the #1 asset we wanted to buy as we were looking for M&A. We're able to -- we're fortunate enough to get the asset. We believe the brand had a long runway. I would say that has exceeded our expectation. And in fact, we think the runways, there's a lot more growth in front of us than we've already captured. So very, very optimistic. The drivers of it quite simply have been our ability to invest in it. So we've stepped up marketing investment from kind of low to mid-single digits as a percent of net sales to 8%, 9%. I think we've captured a really compelling positioning around athlete-worthy nutrition for your own personal quests. We're macro nutrient right, low carb, protein-rich is the approach to nutrition these days and in particular, in the athletic community. And then I think we've -- we inherited a brand with really good innovation pipeline that it's enabled us the combination of distribution gains, innovation in particular, around Salty snacks, marketing investment positioning that we just -- it's on fire. And I'll turn it over to Geoff because he's coined. He wants to throw gasoline on the fire. And I think that there's an opportunity for us to do that.

Yes. Quest is a rocket ship. I mean you don't see too many brands of that scale, delivering that level of growth. And we see it week to week. I'm sure you see it in consumer takeaway. It is uniquely positioned. The products deliver. So one of the things coming into Simply that I've been really impressed by is the innovation capability. I've worked on innovation roles in different companies. Nobody does it better than team at Simply Good. And it is a legitimate true capability. And you see it in Quest. The products taste fantastic. I'm sure many of you in the room eat them, hope so, high-protein products that just tastes fantastic. And what they've been able to do is to take that and push it out beyond just bars and shakes. And that for me is proof-of-concept, Jason, not just of the broad shoulders the brand has. Salty snacks in just a few years, $200 million of sales. So it's proof-of-concept of the brand has showed us. It's proof-of-concept that the category can extend beyond bars and shakes. The opportunity is in front of us because I'm sure you're going to ask how do you keep it going, right? The opportunities in front of us. Keep innovating like we have both in the core and beyond. Keep pushing distribution. There's been a 68% increase in distribution since the acquisition, but there's still a lot of runway, the runway online. There's runway in terms of getting our high-volume SKUs, fully distributed, and we're missing -- we've got some gaps in key channels. And then lastly, I think we can do a better job of marketing this brand. I think the positioning is spot on, but I don't yet believe, and I've been quite clear with us with the team, and I think Joe and I talked about it a lot, we need marketing at a level that is commensurate with the size and cultural relevance of this brand. And we need a media plan so people see it. So that will be -- you have to believe, I'm going to jump into that with both feet. We need market and commensurate with the level of product delivery that we have right now.

So that's what we're going to hold you to next year. Next year, when you're on stage, I want to hear the success story. You're going to show me the stock.

I'll show you the stock. He just set himself up's.

Totally, you did --

And by the way, I agree with it completely. I think our strategy on the brand is smart, dead on. I think our execution against it, both from a communication standpoint and a BD by standpoint, there's always opportunity to improve. But the brand has grown household penetration like nothing I've seen in a long time. So we're at 13.5 -- 14.1% and I think we took the brand over. We were at 11.5% penetration. So the penetrate combination of marketing investment, communication, new products, distribution has just drove penetration, which has driven -- driving the growth rate of the business. And I'm with Geoff, I think he can use exactly the guy to take this brand to the next level. [indiscernible] a fit, [indiscernible] rugby player. That's his brand.

All right. I didn't realize the rugby component [indiscernible]

[indiscernible] play rugby.

Did you, really?

Yes.

All right. Well, we could go down the [indiscernible] but not today. That's over a beer some other time, we'll talk about that story. So the innovation front, you pumped about, which I think is actually reuniting the legacy Atkins innovation team that went through Quest and sat back with the whole family. The you've had success in Salty snacks, but this brand has been extended lots of different places. What have you learned? Like where has the brand successfully been able to go where you learned, like, "All right, this is pushing it too far, and we shouldn't be there.

Can I start? I'll give it to you. So I don't think it's -- first of all, I would say, stay in your own aisle, we learned in pizza. You can have a success, but if you're not -- if you don't have scale in the aisle, it's very difficult to sustain it. So lesson learned is play to your strength in your supply chain, in the bag that your salespeople sell in the aisle where consumers can find. I think that's an important component to it. Second, we've had success innovating on Quest where we can flip the macros of a snacking category, right? So if you think of Salty snacks or cookies, lots of sugar, lots of carbs, not a lot of really good things for it. So if you can flip the macros, no carbs, no sugar, rich and protein, make a great-tasting product and you're the first one to get there, you can have a lot of success tortilla chips being an example, $200 million business. Where the categories already gone there, less certain, so ready-to-drink shakes, standard of Scandi in that category with Premier Protein with a number of other brands, it's already low carb, low sugar, right, protein rich, right? So we've got a nice business, but we don't have the kind of breakout success. So be first, where you can flip the macros with a great-tasting product. And it's like a big category, right? It's a -- I would encourage you to watch the cheese crackers that we just launched on Quest. So I would encourage all of you to try them side by side, but the leading bad for you alternative and tell me you can taste the difference. I don't think you'll be able to -- so it's going to be -- and we're the only low-carb alternative in cheese crackers. It's going to be a monster. So I think kind of that's our profile, enter aisle, flip the macros, be first to do that with a great-tasting product. And I think you can create -- I think as you walk around the store and look at what people snack on, you now know what our R&D people are working on. And can they make a low carb protein-rich version of that, if they can and it tastes great, coming to a store new year sometime in the future.

That's exciting.

I stole your thunder there.

Everything you said, I don't think it's rocket science. Look at these large snacking categories and think there is a percentage of people who would pay up, very high protein, good for you, same tasting version of that snack. And that's not rocket science. We will be there first. And Joe's right, that's what we're telling.

We have a real weak spot for cheese to try to keep them out of my house because I just can't help myself. Okay. What percentage of Quest is still bars? I think is where the brand was born.

Half.

Okay. So half. It's still big. It matters as well. How is the bar business doing?

Well, so we had an innovation in the last year, so we reformulated the [indiscernible] if you've ever been a Quest Bar eater, it is -- probably the biggest knock on the original bar was it could get kind of hard over time. It didn't age well. So the pack was, you pull it out of the foil wrapper, you stick it in a microwave, you heat it for 15 seconds, and it's nice and soft. Well, we've solved that with a reformulation changing out the fiber system. So the new product now is amazing. And at 8, 9 months, if it just came off the line, and that has been a nice driver for growth on the business. And one of the really positive things of the brand, the core of the brand, the bar business continues to grow even as we've added line extensions to the business. So you now got a nice-growing cookie business, nice-growing tortilla chip business. The shake business is growing really well. But if you're not -- if your bar business isn't growing, it's less incremental. So there's enough innovation on bars that we're pretty comfortable that's going to continue.

That category has transformed a lot, rewind the clock 5, 10 years ago, like growth attracts competition, always and forever, massive proliferation. I walked the aisle now it feels a lot cleaner. And obviously, Kind has been folded into Mars, Clif has been folded into Mondelez. It feels like there's just been a lot of cleanup in consolidation. Is my perception reality?

You're right. There has been -- I mean, I think that's happened across the store. It's that uncovered. -- if you remember prior to COVID proliferation everywhere. COVID pushed retailers to take a hard look at their shelves. And -- because in-stocks made. And now you have labor issues with stores. And so they've, I think, across the store, and this is -- this is happening in our category. How do I simplify assortment? How do I improve in-stock? How do I take out inventory levels from a retailer's point of view? So you're not wrong. I can tell you when that's happening, it absolutely helps to be category advisor. You want it straight at the table. And I think bar 1 of our top 10 customers, we're a category adviser. That's why I love this category because retailers are looking to us, to chart the course forward both in the near-term tactical assortment piece as well as long term, what is just look like.

Now when Mondelez acquired Clif, we all mocked at them, is it mockable, jaw dropping for the business of that size to go out with that type of multiple. And they say don't worry will prove that it's worth this because it's been an under-managed asset in terms of margin. And I think last earnings call, they boasted of a 1,000 basis point improvement in margins since the last acquired and said we're not done. We've taken 2 rounds of price, like they are just being complicit. They're riding the same price point for years despite inflation. Usually, you see a company with a massive brand say, I'm going to pivot to a margin. It creates opportunity for those underneath the [indiscernible] say, it's a price umbrella. I can move up or I can take market share. I imagine the same is happening for you. What are you seeing in that interplay? And which path are you going to?

No, there's not a lot -- it's a very unusual in a lot of categories and in food, beverage and personal care. This is not a category where you have a lot of brand interaction based on price, right? So work to Coca-Cola, Coke and Pepsi, 2-liter bottle, got to be close to each other in price, work in the juice business. That's not this kind of category. So you kind of take care of your own house, you protect your margins -- however you feel is right, you protect your margins based on cost, try to get the price points that are relevant for consumers. But it's not a category that has brand interaction like price gap relative to competitor that leads you to a different pricing strategy. So I think they just feel like I assume that Clif missed the opportunity to price, and cost of goods have been going up, and they took the opportunity to take price...

[indiscernible] take sequential price increases on Quest. And by the way, the volumes just kept growing -- so that's how we look at how do we get our own house in order, manage our margins versus what Kind or Clif might be doing.

All right. and we're not even in the aisle of it, right? So it's -- they're in our category, but not a lot of interaction with it, a very different place. And I want to bring us back to margins and get Shaun into the mix in a minute. But before I go there. But let's -- let's first close the loop on portfolio. We talked a lot about Quest. The Atkins business has not been performing as robustly, as it historically has, as I think I would certainly like to see. And this is the second year in a row, you're on stage, and we're having the same conversation because this is the last year, like I asked the same type of question, like, hey, Atkins ain't doing so great. What's going on? So here we are a year later, Atkins isn't doing so great. What's going on?

I'm going to miss the provocative questions for me, Jason. I have to admit that. Let's get to -- look, I love this brand. I'll talk to you a little bit about what I love about this brand. I have some aspirations for it, based upon my understanding of it. But let's talk to facts first, right? The first fact is consumption was up 5% in the second quarter, right, which is -- we would expect more based upon how we've been performing from a household penetration standpoint, but it's an acceptable growth rate. As we moved into the third quarter, we warned on the earnings call. We had some overlaps from last year in and out items in club store, not being repeated at the time. Club stores were looking for foot traffic due to COVID. So -- and what they did is they basically took items not in distribution, put them out on pallets. So we got a lot of incremental volume from those. So if you just back that out a year ago number, we have decent growth on the business, right? So I think quarter-to-date, we're down 3% in tracked channels and then obviously, much better performance in untracked channels. So I think I would characterize somewhere to you. We have higher expectations for the brand. So let me tell you what I love about the brand and let me tell you where I think the opportunities are. And I've been working on this brand for 10 years. This is a brand that is -- it's very, very difficult in your career to find a brand that is more sharply positioned. It is a low-carb, protein-rich brand for people looking to be better, be well and look better. And that is a very compelling positioning. And it's proven out. When a consumer comes to this brand, they're loyal and they buy a lot. So a multiyear buyer back-ends is buying over 100 servings in a year. There is no snack brand on the planet, Cheetos, Doritos, dozen exit. So this is a highly loyal lifestyle brand. And we've shown the ability over a decade to bring consumers to the brand. And that has not changed in the last 3 years. The challenge has been we've not been able to -- the aspiration for this business is can we keep the consumption at the rate of growth of buyers? And that has not been the case. During COVID, it was driven by snacking behavior. You can imagine if you're snacking that much on a product like that, the difference between being at work and being at home, your snacking behavior is disrupted, and it wasn't a positive for the brand, right? So we had less meal replacement, less on the go, less convenience, more confection snacking in the evenings. So we had arrived through that during COVID. Since then, it's been trade down per purchase due to us. And we didn't innovate as well as we should have on bars, where we were innovating the package size for purchase was smaller. And so we're seeing high single, low double-digit buyer growth, but the consumption growth is much lower because we've traded people down. We got to fix the portfolio. We got to get innovation on bars better to get the buy rate back up. And there's no reason that we can't do this. And in fact, the plans are in place, just running the business, you'll see innovation rolling out as we move through the spring and the summer, and you'll see the bar business get back on track because of that. And just so you understand, bars are 5s and 10 packs, chips are singles. So just traded people down from 5s and 10s to 1s and cookies are 4 packs and shakes are 4 packs. So any time you don't pay attention to your mix of the business on Atkins, you can actually force a unit and trade yourself down 20%, 30%, 40%, and it has a significant impact on consumption. So we don't have a brand relevance issue in my mind. We just got a portfolio execution issue that we need to fix.

Do you have a diet relevance issue? I mean if we look across and I think a lot of people still perceive Atkins to be a diet brand. Correct me if you think I'm wrong, and I think you will. So I'm looking forward to that correction. But as we canvass the landscape like hey, Nutri system like every freaking legacy diet brand is under pressure other than these new drugs, which are just in Wegovy. And we'll hear from weight watchers later on how they're pivoting to try to capture some of that because the core business just keeps going out. Is that at the core, the real problem with Atkins?

If it were, I couldn't recruit buyers? So it's not, right? So if I weren't bringing people to the brand, the brand would have a relevance issue. And if you just step back, so 10 years, how different the landscape has changed over 10 years. 10 years ago, low carb was a lunatic fringe of nutrition. Today, it's mainstream. 10 years ago, fast weight loss was the benefit, lifestyle change is the benefit now. We dealt with Keto as a trend, right? We're now dealing with weight loss drugs as a trend. The brand has always been able to adjust to the business situation that we're facing and continue to recruit buyers to the brand. That's not the issue. The issue is keeping buy rate growth similar so that your growth in buyers is growth in consumption, and we can get that back on track. Our track record is just too good for it. And I just want to remind you, in -- when I started on the business, Atkins was a $150 million brand. It's 4x the size now. We've shown the ability to grow this brand consistently year after year after year. And I'm staring at really good buyer numbers. We don't have a relevance issue on this brand. We've got some executional issues we need to clean up, and we're going to clean them up.

So the snack bar portion, right, which is a large portion of the business. Because we didn't bring innovation, we lost 25% of distribution. So that's going to have an impact, right? And we are working furiously to bring back innovation there. So I'd characterize it. That's a pretty big impact on our business when you lose 25% of distribution. And we will get it back.

Yes, if we had executed it that way on Quest. We'd be a different story on Quest, too, right? So you have to -- we learned that, that was our fault. We executed badly. -- should not allow that to happen. And so we're -- the good news is we have good customer relationships as we innovate, we'll fix that problem. The better news actually short term is you start lapping those losses right now, right? So you're going to see the business as we move into the fourth quarter. We'll be through the club store comparisons a year ago. You start lapping the distribution losses before you'll see the business start to pick up.

And when -- what's the innovation fix. Your snack wires didn't work, they fell out of market. You didn't have a backdown? When is the backfill coming?

Well, we've got -- we're launching some right now, but we have a much larger pipeline that is a really good-looking pipeline. And we'll be bringing that to market over the next 1, 2, 3 years.

Okay. Okay. I'm going to pivot to margins. But real quick, Anyone in the audience have a question? No. Okay.

[indiscernible] margins took 30 minutes. I'm surprised about that.

Well this is a growth story -- so if the top line is not working. Nothing else is working. It all falls apart after that. So margins are important, though, obviously. We need to turn that top line into penny profit. And your margins have come under a reasonable lot of pressure. You're not the whole industry has, right? There's been a lot of inflation. But if consensus estimates are right, you're going to finish the year around 400 basis points lower than where you were 2 years ago. Hopefully, consensus is wrong, and it won't be as bad. But I want to talk that, like what have been the drivers of the margin compression? And what are the levers you can pull to recover that?

Well, we did take 2 price increases as these guys talked about already. So over the last couple of years on both brands 16%, 17% about $170 million, give or take, over 3 years in inflation costs. But if you take a step back and say, okay, when we started this year, we thought the cost of goods sold will be up low double digits, and we thought our margins would be down versus the prior year. Basically, most of that will be in the first half. And if you remember the first half of last year, we actually had improvement in that. We didn't have any inflation in our numbers the first third of the year give or take. So we're about 6 months behind because we actually tend to have people buy about 6 months. So that inflation stuff is going to start going in the second half of the year. We're going to be sequentially better and we're going to be better than last year in Q4 versus the previous year overall [Audio Gap]

How about deflation? And we were seeing some like the dairy protein commodities have come way off some of these really high peaks. What are the key commodities we should be looking at? And what are you seeing in the market today?

Protein for sure. I think the dairy protein is a big part of our thing overall. I think the piece you got to remember, too, is we've got to burn off some of the older inventory that's a little bit higher priced. So you're going to see start of that. So our first half of next year is going to be much better from a standpoint of margins versus where it was this year overall.

Now as an 3PL outsourced manufacturing company, I can't imagine there's a lot of productivity you can go after. Is that fair? Or are there opportunities to go out and pick up?

We target anywhere from $15 million to $20 million in cost savings every year. That's kind of our target overall. Some of that's reformulation that Joe talked about. Some of that just kind of productivity out there, tolling increases. We renegotiated our contract with our 3PL in terms of the logistics providers. So you'll see some savings for that. So we're pretty focused on both of those things. So what's commodity outlook and then what are the cost savings, how much that's going to drop overall.

Yes. The freight markets look like they should be your friend as you go to renegotiate that. Labor is really tight. Is that the primary thing to look at as we think about tolling costs, and how they change?

We're -- generally speaking, we're locked in from a standpoint of contracts for tollings. Occasionally, we'll get some surprises as it relates to minimum order quantities as they kind of work through how that works. But we haven't seen much in terms of them trying to pass that on other than new categories that we get into overall. So we haven't seen as much on that side. The nice thing about our business being outsourced, we have a lot more predictability as it thinks through what's coming for us.

Okay. That's good to hear. Last question for me, and then we're out of time. Capital allocation. You've done 1 deal. Just 1 deal. And that's fine. It's being a home run. If we can find something that you have that successful. It will be another home run by all accounts. But what is the priority? Are you guys looking to pay down debt? Do you want -- are you always looking for more deals? What should we expect for you going forward?

Always look on deals, right? So in our category, in our aisle, consumer brands, growth runway, in the absence of that from a capital allocation standpoint.

Yes, pay down debt we just renegotiated, but we're in

Yes. With great to where they are today. It makes a lot more sense to be paying down debt than a couple of years ago.

Awesome. Guys, Gentlemen, thank you so much. Joe, congratulations on what's been a phenomenal run with this business. And Geoff, congrats on the new role. I'm eager to hear you grow next year on some of the proof points and success.

I'll bring you some stuff to look at.

Yes, some of those high-protein crackers too.

You're going to love them.

Sounds like it.

Thank you.

Thank you.