MGP Ingredients Inc (MGPI) 2024 Q3 法說會逐字稿

Good morning and welcome to the MGP Ingredients third quarter, 2024 financial results conference call, all participants will be in listen-only mode. Should you need assistance? Please signal a conference specialist by pressing star. Then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions to ask a question. You may press star then one on your telephone keypad to withdraw your question. Please press star and two. Please note this event is being recorded. I would now like to turn the conference over to Amit Sharma, Vice President of Investor Relations. Please go ahead.

早安，歡迎參加 MGP Ingredients 2024 年第三季財務業績電話會議，所有參與者都將處於僅聽模式。您需要協助嗎？請按星號通知會議專家。然後在電話鍵盤上歸零。今天的演講結束後，將有機會提問。您可以按電話鍵盤上的星號然後再按一個來撤回您的問題。請按星號和二號。請注意此事件正在被記錄。現在我想將會議交給投資者關係副總裁阿米特夏爾馬 (Amit Sharma)。請繼續。

Thank you. I'm a, I'm a Vice President of Investor relations and joining me are members of the management team including David Bratcher, Chief Executive Officer and President and Brandon Gall Chief Financial Officer, Vice President - Finance.

謝謝。我是投資者關係副總裁，與我一起的管理團隊成員包括執行長兼總裁 David Bratcher 和財務長兼財務副總裁 Brandon Gall。

So, I'll begin the call, the management prepared to mods and then open the call to questions.

因此，我將開始通話，管理層準備好修改，然後開始提問。

However, before we begin today's call, it is my responsibility to inform you that this call may involve certain forward-looking statements.

然而，在我們開始今天的電話會議之前，我有責任通知您，本次電話會議可能涉及某些前瞻性陳述。

The company's actual results could differ materially from any forward-looking statements made today due to a number of factors including risk factors. In the company's most recent annual report filed with the Securities and Exchange commission.

由於包括風險因素在內的多種因素，該公司的實際結果可能與今天做出的任何前瞻性陳述有重大差異。在該公司向美國證券交易委員會提交的最新年度報告中。

The company has used no obligation to update any forward-looking statements made during the call except as required by law.

除法律要求外，該公司沒有義務更新電話會議期間所做的任何前瞻性陳述。

Additionally, this call will contain reference to certain non-GAAP measures which we believe are useful in evaluating the company's performance.

此外，本次電話會議將參考某些非公認會計準則衡量標準，我們認為這些衡量標準有助於評估公司的表現。

A reconciliation of these measures to the most directly comparable GAAP measures is included in today's earnings release. If anyone does not already have a copy of the earnings release issued by MGP today, you can access it at our website at www.MGPS.com.

今天的收益報告中包含了這些指標與最直接可比較的公認會計原則指標的調節。如果任何人還沒有 MGP 今天發布的收益發布副本，您可以透過我們的網站 www.MGPS.com 存取它。

At this time, I would like to turn the call over to MGPs Chief Executive Officer and President David Bratcher. David.

現在，我想將電話轉給 MGP 執行長兼總裁 David Bratcher。大衛.

Thank you, Amit. Good morning, everyone. I would like to begin with an overview of our third quarter performance and provide updates on key initiatives. I will then turn it over to Brandon to discuss our quarterly results in greater detail.

謝謝你，阿米特。大家早安。我想先概述我們第三季的業績，並提供關鍵舉措的最新情況。然後我會將其交給布蘭登，以更詳細地討論我們的季度業績。

Lastly, we will wrap up with discussions for our outlook for the full year as well as brief comments on 2025 before opening it up for your questions.

最後，我們將總結對全年展望的討論以及對 2025 年的簡短評論，然後開始回答大家的問題。

As for the third quarter, results were in line with the preliminary results we provided two weeks ago and below our prior expectations, like many in the industry, we are facing challenges in our distilling the solution segment. In regards to the American whiskey category, consolidated sales decreased 24% from the prior year. Period on a pro forma basis. When factoring in the Ais and distillery closure, consolidated sales decreased by 14% primarily due to the combination of our weak brown goods performance and export headwinds in our Great Solutions business.

至於第三季度，結果與我們兩週前提供的初步結果一致，低於我們先前的預期，與業內許多人一樣，我們在提煉解決方案領域面臨挑戰。美國威士忌類別的綜合銷售額比前一年下降了 24%。預計期間。考慮到 AIS 和釀酒廠關閉的因素，綜合銷售額下降了 14%，這主要是由於我們的棕色產品表現疲軟和 Great Solutions 業務的出口逆風所致。

Brandon will discuss our quarterly results in greater detail, but let me spend a few minutes outlining the actions we are taking to strengthen our brown good business as the market corrects for excess whiskey inventories and increase distilling capacity as we shared with you in our fourth quarter call at the start of the year. Part of our strategic plan has been to actively reduce our exposure to age sales by increasing our new distillate business.

布蘭登將更詳細地討論我們的季度業績，但讓我花幾分鐘概述一下我們正在採取的行動，以加強我們的棕色良好業務，因為市場糾正了威士忌庫存過剩並增加了蒸餾能力，正如我們在第四季度與您分享的那樣年初打電話。我們策略計畫的一部分是透過增加新的餾分油業務來積極減少陳釀銷售的風險。

Although our efforts are working as A I whiskey accounted for less than 20% of our consolidated gross profit in the third quarter. Down from nearly half in Q1 of 2021. The age market appears to be weakening at a faster pace than we originally anticipated.

儘管我們正在努力，但第三季威士忌占我們綜合毛利潤的比例還不到20%。較 2021 年第一季的近一半下降。年齡市場的疲軟速度似乎比我們最初預期的要快。

Softening whiskey consumption and elevated industrywide barrel whiskey inventories are having a larger and quicker than expected impact on not only our aged whiskey spot sales but also on our new dissonant volumes.

威士忌消費疲軟和全行業桶裝威士忌庫存增加，不僅對我們的陳年威士忌現貨銷售產生了比預期更大、更快的影響，而且對我們新的不和諧銷量也產生了比預期更大和更快的影響。

As we moved through the third quarter, our spot sales slowed and we saw some customers were having difficulties in meeting their contractual obligations to purchase whiskey.

隨著第三季的到來，我們的現貨銷售放緩，我們看到一些客戶在履行購買威士忌的合約義務方面遇到困難。

This dynamic is more pronounced than our sales to smaller craft customers who are likely to be more impacted by slower retail sales and ongoing destocking at a wholesale and retail level.

這種動態比我們對小型工藝品客戶的銷售更為明顯，這些客戶可能會受到零售銷售放緩以及批發和零售層面持續去庫存的影響。

To be clear, the American whiskey category is still growing but slower growth and higher inventories are leading to lower demand, lower prices and reduced visibility on our contract distilling sales.

需要明確的是，美國威士忌類別仍在成長，但成長放緩和庫存增加導致需求下降、價格下降以及合約蒸餾銷售的可見度降低。

We believe that the underlying environment will remain challenging and likely put even more pressure on our brown goods sales and profitability in 2025. We are disappointed by the impact this faster than expected deterioration is having on our financial results.

我們認為，基本環境仍將充滿挑戰，並可能給 2025 年我們的棕色商品銷售和獲利能力帶來更大壓力。我們對這種比預期更快的惡化對我們的財務表現的影響感到失望。

Although the American whiskey category has successfully navigated periods of temporary supply demand imbalance over the years, we are not setting idle and waiting for the industry dynamics to improve.

儘管多年來美國威士忌類別成功地度過了暫時的供需失衡時期，但我們並沒有閒著等待產業動態的改善。

Let me highlight four proactive actions to stabilize our brown goods business.

讓我強調四項積極行動，以穩定我們的棕色商品業務。

First, let me begin by reaffirming our commitment to remain a leading supplier of American whiskey to our craft and multinational customers.

首先，我首先重申我們的承諾，繼續成為我們的工藝和跨國客戶的美國威士忌領先供應商。

Our whiskey inventories remain an important part of the still expanding American whiskey category and we believe our ability to provide high-quality age and new disc lit with unique match bills at our scale is unmatched in the industry evident in our partnership with several high profile brands. Second, we are reducing our whiskey production and aging whiskey cutaways in 2025 to better align with lower category demand.

我們的威士忌庫存仍然是仍在擴大的美國威士忌類別的重要組成部分，我們相信，我們提供高品質陳釀和新圓盤的能力與我們規模的獨特匹配票據在行業中是無與倫比的，這從我們與多個知名品牌的合作中可見一斑。其次，我們將在 2025 年減少威士忌產量和陳年威士忌的切分，以更好地滿足較低類別的需求。

While we were optimizing our distillery cost structures to mitigate the impact of low production volumes, it likely will be a margin headwind in the near term.

雖然我們正在優化釀酒廠成本結構以減輕產量低的影響，但短期內這可能會成為利潤率的阻力。

Third, we are enhancing our efforts to expand into international markets, particularly Europe and Asia to leverage the American whiskey category, strong growth potential outside of the United States.

第三，我們正在加強拓展國際市場，特別是歐洲和亞洲，以利用美國威士忌類別在美國以外的強勁成長潛力。

Fourth and lastly, our exposure to spot sales is down substantially and we continue to reduce it further by focusing on multiyear new disc linked contracts.

第四，也是最後一點，我們的現貨銷售敞口大幅下降，我們透過關注多年新光碟掛鉤合約繼續進一步減少現貨銷售。

We believe this is the right strategy in the current environment as we optimize our brown goods profits by increasing our volume share at market based pricing.

我們相信，在當前環境下，這是正確的策略，因為我們透過以市場定價增加銷售份額來優化棕色商品的利潤。

I am confident that our actions will put our distilling solutions segment on solid footing over the longer term. However, given the pace of the changes in the Brown Goods contract distilling category, we expect it to be an even bigger headwind in our 2025 results with respect to brands. I am happy to report that our progress towards becoming a premier branded spirits company remains on track.

我相信，從長遠來看，我們的行動將使我們的蒸餾解決方案部門奠定堅實的基礎。然而，考慮到 Brown Goods 合約蒸餾類別的變化速度，我們預計這將成為我們 2025 年品牌業績的更大阻力。我很高興地向大家報告，我們在成為一流品牌烈酒公司方面的進展仍然順利。

We continue to focus on expanding our premium plus price tier portfolio to better align it with consumer preferences and structurally lift our merger and profile.

我們繼續專注於擴大我們的優質加價產品組合，以更好地滿足消費者的偏好，並從結構上提升我們的合併和形象。

In fact, year-to-date our premium plus sales are up 13% compared to last year.

事實上，今年迄今為止，我們的保費加銷售額比去年增長了 13%。

Premium plus now accounts for approximately half of our branded spirits segment sales which is up from 30% for the full year 2021.

目前，Premium Plus 約占我們品牌烈酒細分市場銷售額的一半，高於 2021 年全年的 30%。

Though our premium plus sales growth slowed down to 1% in the third quarter as we cycled the launch of Penelope in many key markets in the prior year period. The rest of our premium plus brands continued to post solid growth.

儘管我們的溢價加銷售成長在第三季放緩至 1%，因為我們在去年同期在許多主要市場上循環推出了 Penelope。我們的其他高端品牌繼續實現穩健成長。

As I look ahead, I expect further inventory tightening at the distributor level to be a headwind in the near term.

展望未來，我預期經銷商層級的庫存進一步收緊將在短期內成為不利因素。

While days on hand inventory for our unit cases remain stable. Our shift to higher price premium plus brands adds cost to the distributors' balance sheets. Leading to further tightening that aside, I expect our premium plus portfolio including Penelope to continue to gain traction with our customers.

雖然我們的單位箱的現有庫存天數保持穩定。我們向更高溢價+品牌的轉變增加了經銷商資產負債表的成本。除了導致進一步收緊之外，我預計包括佩內洛普在內的我們的優質產品組合將繼續吸引我們的客戶。

With that, let me hand it over to Brandon for a review of our core results and revise full year guidance. Brandon.

接下來，讓我將其交給布蘭登，以審查我們的核心績效並修改全年指導。布蘭登.

Thanks David for the third quarter of 2024. Consolidated sales decreased 24% from the prior year period to $161.5 million excluding the impact of the and distillery in both periods, consolidated sales decreased by 14% reflecting lower sales in all three operating segments within the Distilling Solutions segment reported sales declined by 36% excluding the impact of the Access and distillery in both periods. Segment sales declined by 18%.

感謝 David 為我們帶來了 2024 年第三季的成果。合併銷售額較上年同期下降24%，至1.615 億美元，不包括這兩個時期的釀酒廠和釀酒廠的影響，合併銷售額下降14%，反映出蒸餾解決方案部門報告的銷售額下降36 %，不包括蒸餾解決方案部門內所有三個營運部門的銷售額下降兩個時期的訪問和釀酒廠的影響。分部銷售額下降 18%。

Grounded sales declined by 22% as compared to the prior quarter due to lower age and distillate sales. A warehouse related sales increased by 12%.

由於酒齡和餾分油銷量下降，停飛銷量較上一季下降 22%。倉庫相關銷售額成長了 12%。

Our brand and spirit segment sales decreased by 6%. Primarily due to the planned optimization of our mid and value tiered brands sales for our mid and value portfolio collectively decline by double digits. Largely consistent with year-to-date trends. This decline is driven by lower sales volumes as we increase pricing on certain lower margin made in value brands. Our premium plus sales increased by 1% as our brands being American whiskey and tequila categories within this price tier continue to perform well.

我們的品牌和烈酒部門銷售額下降了 6%。主要是由於計劃優化我們的中端和價值級品牌，我們的中端和價值產品組合的銷售額總體下降了兩位數。與今年迄今的趨勢基本一致。這種下降是由於銷售下降造成的，因為我們提高了某些價值品牌利潤較低的定價。我們的高端附加銷售額成長了 1%，因為我們的品牌美國威士忌和龍舌蘭酒類別在這個價格層繼續表現良好。

Our premium plus growth decelerated from the second quarter as we cycled the initial launch of the Penelope brand in key large markets. During the third quarter of last year, the green solution sales declined by 18% driven primarily by decreased sales volumes of specialty protein as well as lower commodity and specialty start sales.

隨著我們在主要大型市場上首次推出佩內洛普品牌，我們的溢價加成長從第二季開始放緩。去年第三季度，綠色解決方案銷售額下降了 18%，這主要是由於特種蛋白質銷售下降以及商品和特種產品開始銷售下降所致。

Specialty protein sales were negatively impacted by the stronger US dollar. We expect specialty protein sales to return to growth in the fourth quarter as we onboard new domestic customers to offset lower export sales.

特種蛋白質銷售受到美元走強的負面影響。我們預計特種蛋白質銷售將在第四季度恢復成長，因為我們引入了新的國內客戶以抵消出口銷售的下降。

Our specialty store sales which provide FDA approved dietary fibers under the fibroin brand continue to benefit from the long term consumer driven tailings across several large food categories.

我們的專賣店銷售以絲素品牌提供 FDA 批准的膳食纖維，繼續受益於長期消費者驅動的多個大型食品類別的尾料。

Third quarter, consolidated gross profit decreased by 10% to $65.8 million representing 40.8% of sales excluding the impact of the distillery in both periods. Third quarter, consolidated gross margin improved approximately 30 basis points from the prior year period as we delivered the second consecutive quarter of higher than 50% gross margins in our brand and spirits segment.

第三季度，綜合毛利潤下降 10%，至 6,580 萬美元，佔銷售額的 40.8%（不包括釀酒廠對這兩個時期的影響）。第三季度，綜合毛利率比去年同期提高約 30 個基點，我們的品牌和烈酒業務連續第二季實現高於 50% 的毛利率。

Distilling solutions and ingredient solutions gross profit declined to 28.6 million and $4.7 million. Respectively.

蒸餾解決方案和配料解決方案毛利分別下降至 2860 萬美元和 470 萬美元。分別。

Distilling solutions segment, gross margin increased by 10% points in Green Solutions gross margin declined by 16% points excluding the impact of the still in both periods. Distilling solutions gross margin declined by 3% points due to lower ground good sales.

蒸餾解決方案部門的毛利率上升了 10 個百分點，而綠色解決方案部門的毛利率則下降了 16 個百分點，排除了蒸餾器的影響。由於銷量下降，蒸餾解決方案毛利率下降了 3 個百分點。

While Green solutions gross margin declined by 11% points, primarily due to lower specialty protein sales and incremental costs to commercialize the way our stream advertising and promotion expenses for the third quarter increased modestly to $9.6 million. Reflecting ongoing investment behind our premium plus portfolio granted spirits related MGPs totaled $8.7 million for the quarter and represented 14% of segment sales.

雖然綠色解決方案的毛利率下降了 11%，主要是由於特種蛋白質銷售額下降以及第三季的串流廣告和促銷費用商業化的增量成本小幅增加至 960 萬美元。本季與烈酒相關的 MGP 總額為 870 萬美元，佔該部門銷售額的 14%，這反映了我們的溢價+投資組合背後的持續投資。

We remain committed to investing behind our faster growing higher margin premium plus price tier brands as we seek to capture a greater share of the American whiskey and Tequila categories.

我們仍然致力於投資我們成長更快、利潤率更高的溢價加價位品牌，因為我們尋求在美國威士忌和龍舌蘭酒類別中佔據更大份額。

Third holder operating income increased 64% to $32.6 million. While adjusted operating income decreased 9% to $39 million as lower gross profits, more than offset lower SG&A costs.

第三人營業收入成長 64% 至 3,260 萬美元。雖然由於毛利下降，調整後的營業收入下降了 9%，至 3,900 萬美元，但足以抵消 SG&A 成本的下降。

Net income for the third quarter increased 82% to $23.9 million. While adjusted net income decreased 5% to $28.8 million.

第三季淨利成長 82%，達到 2,390 萬美元。調整後淨利下降 5%，至 2,880 萬美元。

Basic earnings per common share increased to $1.07 per share from $0.59 per share in the prior year period. While adjusted basic earnings per share decreased to $1.29 per share from $1.36 per share in the prior year period, adjusted I bead decreased 9% compared to the year ago period to $45.7 million.

每股普通股基本收益從去年同期的每股 0.59 美元增至每股 1.07 美元。雖然調整後的每股基本收益從去年同期的每股 1.36 美元下降至每股 1.29 美元，但調整後的每股收益比去年同期下降了 9%，至 4,570 萬美元。

Moving the cash flow cash flow from operations was $73.5 million for the year-to-date period. Up from $48.6 million in the prior year period. I'm proud of our cash generation there in a tough quarter. As we continue to focus on managing our working capital, including lower accounts receivable and barrel inventory put away our balance sheet remains healthy and we remain well capitalized with debt towing $290 million in a cash position of $20.8 million. At the end of the third quarter, our net debt leverage ratio remained largely stable at approximately 1.3 times at the end of the quarter.

年初至今，來自營運的現金流量為 7,350 萬美元。高於去年同期的 4,860 萬美元。我為我們在艱難的季度中創造的現金感到自豪。隨著我們繼續專注於管理我們的營運資金，包括減少應收帳款和庫存，我們的資產負債表保持健康，我們的資本充足，債務額為 2.9 億美元，現金頭寸為 2,080 萬美元。三季末，我們的淨負債槓桿率基本上穩定在季末的1.3倍左右。

Capital expenditures were $20.9 million during the quarter and $43.5 million year-to-date. We now expect full year 2024 Capex of approximately $78 million as work on some projects is now expected to carry into 2025 to reduce overall costs and better line up with our needs.

本季資本支出為 2,090 萬美元，年初至今資本支出為 4,350 萬美元。我們現在預計 2024 年全年資本支出約為 7800 萬美元，因為一些項目的工作預計將持續到 2025 年，以降低總體成本並更好地滿足我們的需求。

The mini fuel plant which is expected to mitigate additional costs related to treatment and disposal of waste wheat starch is an example of such carryover and is now likely to come online by the end of the first quarter, 2025 we continue to expect 2025 Capex to be below 2024 levels and we'll share more on our Q4 in this call.

預計將減少與廢小麥澱粉處理和處置相關的額外成本的小型燃料廠就是此類結轉的一個例子，現在可能會在 2025 年第一季末上線，我們繼續預計 2025 年資本支出將達到低於2024 年的水平，我們將在本次電話會議中分享有關第四季度的更多資訊。

That whiskey put away was $12.1 million. During the quarter and $32.7 million year-to-date. Well below your levels.

存放的威士忌價值 1210 萬美元。本季和年初至今的收入為 3,270 萬美元。遠低於你的水平。

During the first quarter, the board approved a $100 million share repurchase program. And during the third quarter, we repurchased approximately $2.5 million of our common stock, bringing the year-to-date share repurchase amount to approximately $10 million.

第一季度，董事會批准了一項價值 1 億美元的股票回購計畫。在第三季度，我們回購了約 250 萬美元的普通股，使年初至今的股票回購金額達到約 1,000 萬美元。

The board of directors also authorized a quarterly dividend of 12¢ per share which is payable on November 29th to stockholders of record. As of November 15th, the board continues to view dividends as an important way to share the success of the company with stockholders turning to the outlook for the full year. You're reiterating the updated full year guidance provided along with our preliminary third quarter results. Two weeks ago, the updated 2024 guidance includes full year sales in the range of $695 million to $705 million adjusted in the range of $196 million to $200 million adjusted basic earnings per share in the $5.55 to $5.65 range.

董事會還授權每股 12 美分的季度股息，將於 11 月 29 日支付給登記在冊的股東。截至 11 月 15 日，董事會繼續將股息視為與股東分享公司成功的重要方式，並展望全年前景。您重申了我們提供的更新後的全年指導以及我們的第三季初步業績。兩週前，更新後的2024 年指引包括全年銷售額在6.95 億美元至7.05 億美元之間，調整後在1.96 億美元至2 億美元之間，調整後每股基本收益在5.55 美元至5.65美元之間。

The basic weighted average shares outstanding expected to be approximately $22.1 million at year end, an effective tax rate of approximately 24%.

截至年底，基本加權平均已發行股票預計約 2,210 萬美元，有效稅率約為 24%。

As we look to the fourth quarter, we continue to expect our brown goods sales and profit to remain under pressure as unfavorable category supply demand dynamics will lead to lower spot and contracted whiskey sales than previously anticipated.

展望第四季度，我們繼續預期我們的棕色商品銷售和利潤將繼續面臨壓力，因為不利的類別供應需求動態將導致現貨和合約威士忌銷售低於先前的預期。

While retail trends for our premium plus portfolio continue to improve further inventory tightening at distributors is expected to pressure our brand and spirit shipments in the fourth quarter.

雖然我們的優質產品組合的零售趨勢繼續改善，但分銷商的庫存進一步收緊預計將對我們的品牌和烈酒第四季度的出貨量帶來壓力。

We expect the ingredient solutions segment to return to positive sales growth in the fourth quarter as we continue to win new specialty protein business.

隨著我們繼續贏得新的特種蛋白質業務，我們預計配料解決方案部門將在第四季度恢復正銷售成長。

But we will provide 2025 guidance with our fourth quarter results. I'd like to provide some additional color.

但我們將在第四季度業績中提供 2025 年指引。我想提供一些額外的顏色。

As David mentioned, given the current category dynamics, we're significantly reducing our brown goods production to better align with demand in 2025. At the same time, softer American whiskey growth in elevated barrel inventories continue to constrain demand for each whiskey and increasingly our new tot. While we are optimizing our cost structure to mitigate the impact of lower production. Lower aged and distillate sales are expected to drive a nearly 35% decline in distilling solution segment sales and a nearly 50% decline in distilling solutions segment gross profits in 2025.

正如 David 所提到的，鑑於目前的品類動態，我們將大幅減少棕色商品的產量，以更好地滿足 2025 年的需求。同時，美國威士忌成長疲軟，桶裝庫存增加，繼續限制對每種威士忌的需求，並日益限制我們的新威士忌的需求。同時，我們正在優化成本結構，以減輕產量下降的影響。預計到 2025 年，陳釀油和餾分油銷量下降將導致蒸餾解決方案部門銷售額下降近 35%，蒸餾解決方案部門毛利下降近 50%。

On the other hand, we expect our ingredient solutions segment to stabilize and return to profitable growth in 2025.

另一方面，我們預計我們的原料解決方案部門將在 2025 年穩定並恢復獲利成長。

Additionally, we expect our Brande saying to deliver top line growth and margin expansion in 2025.

此外，我們預計 Brande 品牌將在 2025 年實現營收成長和利潤率擴張。

And now let me turn things back over to you and the market.

現在讓我把事情轉回給你和市場。

Thanks Brandon. While I am not pleased with our 2025 outlook for the Brown goods business. This reset reflects current market conditions. And more importantly, our proactive actions I discussed earlier to stabilize our Brown goods business.

謝謝布蘭登。雖然我對 2025 年棕色商品業務的前景不滿意。此次重置反映了當前的市場狀況。更重要的是，我之前討論過我們採取積極行動來穩定我們的棕色商品業務。

We are actively engaging our customer list, tightening our contract terms and further reducing our exposure to spot and age sales which I believe will light and mitigate risk in our contract distilling business.

我們正在積極吸引我們的客戶名單，收緊我們的合約條款，並進一步減少我們對現貨和陳釀銷售的敞口，我相信這將減輕和減輕我們合約蒸餾業務的風險。

Our ingredient solutions segment continues to be well positioned to thrive to independently post the distillery closure though unexpected complexities from that transition have impacted recent performance. We expect this segment to return to positive growth next year.

我們的原料解決方案部門繼續處於有利地位，可以在釀酒廠關閉後獨立蓬勃發展，儘管這種過渡帶來的意想不到的複雜性影響了最近的業績。我們預計該細分市場明年將恢復正成長。

Finally, I am most enthusiastic about our progress towards becoming a premier branded spirits company. The Luxco acquisition firmly puts us on that path. I anticipate 2025 could mark the 1st year in which our branded spirits business not only becomes our biggest segment by sales but also our primary growth engine. Most importantly, our key premium plus brands continue to have growth runway ahead, positioning us to deliver attractive growth for years to come.

最後，我對我們成為一流品牌烈酒公司的進展感到非常興奮。收購 Luxco 堅定地讓我們走上了這條道路。我預計 2025 年可能是我們的品牌烈酒業務不僅成為我們銷售額最大的細分市場而且成為我們主要成長引擎的第一年。最重要的是，我們的主要高端品牌繼續保持成長勢頭，使我們能夠在未來幾年實現有吸引力的成長。

I would like to close by thanking the NGP team for their hard work and focus in this challenging environment.

最後，我要感謝 NGP 團隊在這個充滿挑戰的環境中的辛勤工作和專注。

I'd also like to welcome Kathleen Melany to our NGP team keep joins us as general counsel and we'll continue to add strong talent to our organization that concludes our prepared remarks. Operator, we are ready to begin the question and answer portion of the call.

我還要歡迎 Kathleen Melany 加入我們的 NGP 團隊並繼續擔任總顧問，我們將繼續為我們的組織增添強大的人才，這是我們準備好的發言的總結。接線員，我們已準備好開始通話的問答部分。

We will now begin the question and answer session to ask a question. You may press star then one on your telephone keypad. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time, your question has been addressed and you would like to withdraw your question. Please press star. Then two at this time, we will pause momentarily to assemble our roster.

我們現在開始問答環節來提問。您可以按下電話鍵盤上的星號，然後按一個。如果您使用免持電話，請在按鍵之前拿起聽筒。如果您的問題已解決，而您想撤回您的問題，則可以隨時這樣做。請按星號。那麼此時兩點，我們將暫停一下以集合我們的名單。

First question comes from Bill Chappell with Truist Securities. Please go ahead.

第一個問題來自 Truist Securities 的 Bill Chappell。請繼續。

Thanks. Good morning.

謝謝。早安.

Just I guess we want to start with kind of this year and then, and then a couple questions on visibility into next year. But 1st this year for this quarter, is it fair to say that ingredient and branded were actually in line with expectations and, and majority of the, the my comes from Distilling Solutions and within that miss from aged or was there more to it for the quarter and to the guidance?

我想我們想從今年開始，然後再問幾個關於明年可見度的問題。但今年本季的第一，可以公平地說，成分和品牌實際上符合預期，而且大部分來自蒸餾解決方案，並且在陳年的失誤中，或者還有更多的內容嗎？

Yeah, I'll, I'll start with the numbers bill and then they can chime in. But yes. The, the myth and the reduction in our expectations for the year is, is brown goods distilling solutions driven. However, Q3 performance for ingredients was under our initial expectations as we as you know, are trying to repurpose sales from export markets domestically. And a couple of those large sales that we had planned on this quarter actually got pushed to the fourth quarter. So ingredients came in under for Q3, but we expect that to rebound in Q4 for our remarks. The other change and this isn't necessarily a Q3 change. More of a Q4 change is the distributor tightening that we're now seeing in the Brain Spirits segment, which has resulted in in our Q4 outlook for brands to now be taken down a little bit in our recent numbers with sales for the segment to be down in the high single digits, you know.

是的，我會，我會從數位帳單開始，然後他們可以插話。但是是的。我們對今年的預期的神話和降低是由棕色產品蒸餾解決方案所驅動的。然而，第三季原料的表現低於我們最初的預期，正如您所知，我們正試圖將出口市場的銷售重新轉移到國內。我們計劃在本季進行的一些大型銷售實際上被推遲到了第四季度。因此，第三季的原料價格有所下降，但我們預計，根據我們的言論，第四季的原料價格將會反彈。另一個變化並不一定是第三季的變化。第四季的變化更多的是我們現在在 Brain Spirits 領域看到的經銷商收緊，這導致我們在最近的數據中對品牌的第四季度前景有所下調，該領域的銷售額將下降你知道，下降到高個位數。

Bill I I would add that I think you're spot on the, the the disappointing part of this is the contract is still in brown goods business ingredients is as I reflect on what Brandon and I talked it roughly within line of what we thought, you know, there's a lot of transformation going on in that business today. A lot of noise in that business that we plan to to wrap up very quickly here as we allude to in our script and I think brands is is right where we need it. Now, as we mentioned, you know, as we continue to premiumize our portfolio, even though our days on hand of physical cases are the same, the value at which we're setting at an inventory of seller is forcing them to look at the balance sheets, not just for us, for everybody, which is why we continue to hear this about the stocking because they have people just like Brandon. So then they're looking at the balance sheet. So we monitor that closely. But we still, I think there the takeaway here is what we said in the script. You know, this the American whiskey category deteriorated faster than we expected. We'd always planned at this at some point. It's a normal cycle in in any category within beverage alcohol, but it did happen a little quicker than we anticipated.

比爾我想補充一點，我認為你是對的，令人失望的部分是合約仍然是棕色商品業務的成分，正如我反思布蘭登和我大致所說的，與我們的想法一致，你要知道，如今該產業正在發生許多變革。正如我們在腳本中提到的那樣，我們計劃在這裡很快結束該業務中的許多噪音，我認為品牌正是我們需要的地方。現在，正如我們所提到的，您知道，隨著我們繼續優質化我們的產品組合，即使我們手頭上的實體箱天數相同，我們為賣家設定的庫存價值迫使他們考慮資產負債表，不僅對我們來說，對每個人來說，這就是為什麼我們繼續聽到有關長襪的消息，因為他們有像布蘭登這樣的人。然後他們就會查看資產負債表。所以我們密切關注這一點。但我們仍然，我認為這裡的要點是我們在劇本中所說的。你知道，美國威士忌類別的惡化速度比我們預期的要快。我們總是在某個時候計劃好這一點。對於酒精飲料的任何類別來說，這都是一個正常的循環，但它發生的速度確實比我們預期的要快一些。

Got it. And then just following up, I mean, in terms of visibility, I think that the question I hear most often is as we look at consumer takeaway in Nielsen or, or government data or disus what have you, we've seen a slowdown in in American whiskey consumption now for 12, almost 18 months. And so I guess the surprise factor is is that you're just realizing it, seeing it now? And so do you not have that kind of visibility, especially to the newer distilled contracts? And what gives us confidence that I mean, why, why make any aged for next year? What you know if, if things are putting back, why, why not, why, why only just do cut it back where you're just making new and age goes to zero? I mean, help us understand kind of how you have any visibility or confidence, especially, you know, for, for next year.

知道了。然後，我的意思是，就可見性而言，我認為我最常聽到的問題是，當我們查看尼爾森的消費者外賣或政府數據或討論什麼時，我們看到了增長放緩美國威士忌消費量已經持續12 到18 個月了。所以我想令人驚訝的因素是你現在才意識到它，看到它？那麼，您是否沒有這種可見性，尤其是對於較新的精煉合約？是什麼讓我們有信心，我的意思是，為什麼，為什麼要為明年做任何陳釀？你知道，如果事情正在推遲，為什麼，為什麼不，為什麼，為什麼只是在你剛剛製作新的地方削減它，年齡為零？我的意思是，幫助我們了解您的知名度或信心，特別是明年的知名度或信心。

You know, Bill, it's a great question. If you think about the the new business and contract business, as we did mention in our script, we have a few smaller craft, regional type customers. We've had some contractual issues with, but the the multinationals not so much. I mean, they, they, they are moving forward with with the obligation. So therefore we do have visibility and know that that's stable business. I think as you look forward into this, I think everybody, this is my, my view, people across the industry, we remain very, very, very bullish on American whiskey and we're buying inventory and buying new businessline and buying this left and right. It's been a great, great time. But at some point when you do see a little softening and you do see American whiskey in a branded category still has growth, but it has definitely softened. It's going to force all of them to go back and start looking at it. And that is what we're seeing now. It's just people putting everything out, holding it back to where they can. That's why our age and our spot business is, you know, it, it stalled for the moment. Now to the second part of your question as we go into 25 it's a great question. The quick answer is we're not, you know, if you heard in my point that we are, our put away for next year is related just to our brands. We spent the last two years building a nice inventory for future sales. We always think the sales are always going to be there. But in looking at and in stabilizing the business, we've taken the actions I outlined by looking at what level should we run? How do we cut cost and how do we generate cash. One of the biggest cash outlays that we have is put away an inventory that put away an inventory for future sales on this. We basically taken to zero for 2025.

你知道，比爾，這是一個很好的問題。如果您考慮新業務和合約業務，正如我們在腳本中提到的那樣，我們有一些較小的工藝、區域類型客戶。我們與跨國公司存在一些合約問題，但問題不大。我的意思是，他們，他們，他們正在履行義務。因此，我們確實具有可見性，並且知道這是穩定的業務。我認為，當你們展望這一點時，我想每個人，這是我的觀點，整個行業的人們，我們仍然非常非常非常看好美國威士忌，我們正在購買庫存，購買新業務，併購買剩下的威士忌對了。這是一段非常非常美好的時光。但在某些時候，當你確實看到了一點疲軟時，你確實看到品牌類別中的美國威士忌仍然有成長，但它肯定已經疲軟了。這將迫使他們所有人回去並開始審視它。這就是我們現在所看到的。只是人們把一切都拿出來，把它保留在他們能做到的地方。這就是為什麼我們的時代和我們的現貨業務暫時停滯了。現在到你問題的第二部分，我們進入 25，這是一個很好的問題。快速的回答是我們不是，你知道，如果你從我的觀點中聽說我們是，我們明年的庫存只與我們的品牌有關。我們在過去的兩年為未來的銷售建立了良好的庫存。我們始終認為銷量永遠存在。但在審視和穩定業務的過程中，我們採取了我概述的行動，看看我們應該運行什麼水平？我們如何削減成本以及如何產生現金。我們最大的現金支出之一是儲存庫存，為未來的銷售儲存庫存。到 2025 年，我們基本上將其歸零。

Got it. And then just one last one as I'm looking to 25 and I just want to clarify. It sounds like the majority of when you're saying that the distillery profits down 50% is aged because the other question I get is with so much supply out there, nobody needs to buy new and, and even your existing contracts are going to see massive pricing pressure and you're going to have to give concessions of what you're making it for. Can you maybe just address that?

知道了。然後是最後一項，因為我正在尋找 25，我只是想澄清一下。聽起來，當你說酒廠利潤下降50% 時，大多數情況都是老化的，因為我得到的另一個問題是，那裡的供應量如此之大，沒有人需要購買新的，甚至你現有的合約也會出現這種情況。你能解決這個問題嗎？

Yeah. They'll all start and that, that's exactly right. Next year, the the majority of the reduction next year is driven by age, which is actually the same story this year as well. And as far as pricing goes, this is something that we're really, you know, we pay a lot of attention to, as you'd imagine. On the new contract side, a lot, those agreements are, are put in place ahead of time. So, on the existing contracts, obviously, we're not seeing any price decreases. And on the age from the eight sales we are making are still clearing at, you know, pretty good levels. Price wise, it's more volume at this point. But, you know, as we look into next year, we do have some pricing factored into that for the agents that we are for the sales we do have in our, in our outlook.

是的。他們都會開始，這是完全正確的。明年，明年的大部分減少是由年齡驅動的，實際上今年也是同樣的情況。就定價而言，正如您想像的那樣，我們確實非常關注這一點。在新合約方面，很多協議都是提前落實的。因此，在現有合約中，顯然我們沒有看到任何價格下降。從我們正在進行的八次銷售來看，年齡仍然處於相當不錯的水平。從價格角度來看，目前的銷售量更大。但是，你知道，當我們展望明年時，我們確實在我們的前景中考慮了一些針對代理商的定價因素。

Yeah, I think Bill let me add to that a little bit. So as we look at it today, we're, we're not seeing that price compression today. We do though. It's a law of supply and demand when you have excess inventories and excess capacity over time, we do expect pricing pressure. So within the, the, the color commentary that we gave you on revenue and profitability for brown goods, we did factor in price compression.

是的，我想比爾讓我補充一點。因此，當我們今天看到它時，我們今天沒有看到價格壓縮。但我們確實這麼做了。這是供需規律，當庫存過剩和產能過剩時，我們確實預期會出現價格壓力。因此，在我們向您提供的有關棕色商品收入和盈利能力的彩色評論中，我們確實考慮了價格壓縮。

Great. Thanks so much.

偉大的。非常感謝。

Thank You.

謝謝。

The next question comes from Robert Moskow with TV Cowen. Please go ahead.

下一個問題來自 TV Cowen 的 Robert Moskow。請繼續。

Hi, thanks for the question. You know, I, I appreciate the, the effort to kind of pull the band aid on, on 2025. But, but I am curious to know, you know, what, what percent of your, your distillate customers have you had these conversations with you know, you have hundreds of them. So I imagine that, you know, that they're giving you their outlook as it stands today. And you have, you, do you feel like you've, you've, you've encompassed the full set is the first question and then the second is, you know, are the small ones going to stay in business? Like do you expect another, another hit possibly in 2025 from, you know, the long tail of your customers that that may not be around.

你好，謝謝你的提問。你知道，我，我很欣賞 2025 年為實現創可貼所做的努力。但是，但我很想知道，你知道，你的餾分油客戶中有多少百分比是你與你進行過這些對話的，你知道，你有數百個這樣的對話。所以我想，你知道，他們正在向你展示他們今天的觀點。你，你，你是否覺得你已經，你已經，你已經涵蓋了全套，這是第一個問題，然後第二個問題是，你知道，小公司會繼續經營嗎？就像你預計 2025 年可能會出現另一次打擊一樣，你知道，你的客戶的長尾可能不會出現。

Great question. So I I can confidently say all of our customers, our commercial team has been fully engaged, either they're calling us or we're calling them because we, we really wanted to be able to give you good solid color commentary while we didn't give you f guidance for 25 yet we gave you good solid color commentary. And part of that was making sure that we actively engage with every customer out there as far as far as speculating on some of the crafts. And what happens. I don't know, it makes logical sense that over time if they can't hold up in the retail markets, that they disappear. But that also I'm going to remind you that that is also what Brandon and I've said for a couple of quarters. Now is this is the reason why we felt like if we can contract new this L A multiyear, it provides an annuity to business, the future of this company is in brands that that's the future of this company. And I know we've been consistent in saying we look at our contract distilling business. Our ingredient business is feeding the cash to grow the most profitable segment. So yes, we reached out to all of our customers. I can't speculate on what happens to those customers, but the ones that we put into 2025 are bigger multinational contract customers and those that we feel even on a spot basis that we've had the conversation with that have the intent to do.

很好的問題。所以我可以自信地說，我們所有的客戶，我們的商業團隊都全力投入，要么他們打電話給我們，要么我們打電話給他們，因為我們真的希望能夠為您提供良好的純色評論，而我們卻沒有。其中一部分是確保我們積極與每位客戶互動，就某些工藝品進行投機。會發生什麼。我不知道，從邏輯上講，隨著時間的推移，如果它們無法在零售市場上站穩腳跟，它們就會消失。但我還要提醒您，這也是布蘭登和我幾個季度以來所說的。這就是為什麼我們覺得如果我們可以在洛杉磯簽訂一份多年期新合同，它可以為企業提供年金，這家公司的未來在於品牌，這就是這家公司的未來。我知道我們一直一致表示我們正在研究我們的合約蒸餾業務。我們的原料業務正在為成長最有利可圖的業務提供現金。所以，是的，我們聯繫了所有客戶。我無法推測這些客戶會發生什麼，但我們投入到 2025 年的客戶是更大的跨國合約客戶，以及我們甚至在現場就感覺到我們已經與他們進行過對話並有意向的客戶。

Okay. And, and maybe I'll pivot to the branded side. You said yourself that things slowed in the third quarter, but you're forecasting growth on the branded side in 2025. Given that the distributors are, are cutting back and, and are facing, you know, higher, higher cost of carrying inventory. And also that you've left this, this major launch on Penelope, like what's the, what's the path to further growth in 2025 for that branded business? What are the tactics to get there?

好的。而且，也許我會轉向品牌方面。您自己說過，第三季的情況有所放緩，但您預計 2025 年品牌方面將出現成長。鑑於分銷商正在削減開支，並且面臨越來越高的庫存成本。另外，您已經離開了 Penelope 的這一重大發布，例如該品牌業務在 2025 年進一步增長的路徑是什麼？到達那裡有哪些策略？

It's moving to where the customers are, you know, look, if you look at our premium plus portfolio is primarily whiskey driven today, but we've actively been adding products to a good, good quality, higher end tequila, but I don't think it stops there. We, we're not going to rest on this whiskey business. It's about moving where the customers are. Yes. Overall, the industry has softened it back to, you know, precovid levels. So we said many, many times that everybody enjoyed the sales during COVID, but now the market is correcting itself and you're seeing players across the industry to correct themselves. What will also happen and it happens every time is the consumer correct? You know, they're, they're, they're going to move to other products. They're going to, doesn't mean whiskey goes away or tequila goes away. But who knows what the next category is and what we tend to research and focus is what Brandon and I've said over and over, it's a diversification. What's great about the branded business is this diversification? Very rarely. I can only think of one major company that has only one item. Most of the big, big multinationals you're dealing with, have a portfolio of items across many price tiers. And the reason why they do is to react to customer demand. That's what we have to continue to do. We have to shore up our brand portfolio so that it's not on the, especially on the premium plus just whiskey focused. We are hiding tequilas gins, whatever we need to do to move where the customer is. And I think that's what we have, and I've said this in previous calls, the advantage that we have, we're nimble, we're not pulled in by your bureaucratic system, we can respond quickly to what those customers are. And I think the question is, is a lot of people trying to figure out where they are going. But once that's all done and we do spend a lot of time researching this, we can get there faster.

它正在轉向客戶所在的地方，你知道，如果你看看我們的優質產品組合今天主要是威士忌驅動的，但我們一直在積極地將產品添加到優質、高端的龍舌蘭酒中，但我不這樣做不要認為它就停在那裡。我們，我們不會停留在威士忌業務。這是關於移動到客戶所在的地方。是的。總體而言，該行業已將其軟化回新冠疫情前的水平。因此，我們多次說過，每個人都喜歡新冠疫情期間的銷售，但現在市場正在自我糾正，你會看到整個行業的參與者都在自我糾正。每次消費者正確時都會發生什麼事？你知道，他們、他們、他們將轉向其他產品。他們會這樣做，並不意味著威士忌消失或龍舌蘭酒消失。但誰知道下一個類別是什麼，以及我們傾向於研究和關注的內容，布蘭登和我一遍又一遍地說，這是多元化。品牌業務的偉大之處在於這種多元化嗎？很少。我只能想到一家只有一種產品的大公司。大多數與您打交道的大型跨國公司都擁有跨多個價格等級的產品組合。他們這樣做的原因是為了回應客戶的需求。這就是我們必須繼續做的事情。我們必須加強我們的品牌組合，使其不再專注於威士忌，尤其是高端威士忌。我們正在隱藏龍舌蘭杜松子酒，無論我們需要做什麼才能將其轉移到顧客所在的地方。我認為這就是我們所擁有的，我在之前的電話會議中已經說過，我們擁有的優勢，我們靈活，我們不會被官僚系統所吸引，我們可以快速回應這些客戶。我認為問題是，很多人都在試圖弄清楚他們要去哪裡。但一旦這一切都完成了，我們確實花了很多時間來研究這個問題，我們就可以更快地實現這一目標。

Okay. And, and there's an appetite among the major distributors for, for, for making a bigger commitment to your, for you to you at, in terms of market share because I know that I know they're cutting back, right? But.

好的。而且，主要分銷商有興趣在市場份額方面向您做出更大的承諾，因為我知道我知道他們正在削減，對嗎？但。

Would you say cutting back, are you referring to their inventory or the rumors about them cutting heads or which would you say cutting back.

你會說削減，你指的是他們的庫存還是關於他們砍頭的謠言，或者你會說削減。

The rumors to cutting heads?

傳言要砍頭？

Yeah. So, well, what you hear on that primarily is a wine focus because wine has been quite a, quite a laggard in the, in the business. So, most of what we hear on that is in their wine portfolio. You got to remember the two major wholesalers in the US tend to firewall spirit sales from wine sales. Okay? So, they've had a bigger impact there. They're optimizing their structure there. Once again, they're private companies. You can only go by one here gets reported. So, I don't read that as a sign. I actually if what they're saying or what we hear is true. I think it's a positive thing for spirits, okay, in overall consumption because they're going to put more energy into what drives in profit. They're not public companies, they're private companies, but they want that money the same way. All of the both of them, the big ones are leveraged, and they need to generate it and they're going to take their energies and put it into the business that's still there and that's the spirit sector.

是的。所以，嗯，你聽到的主要是對葡萄酒的關注，因為葡萄酒在這個行業中一直是相當落後的。所以，我們聽到的大部分內容都是在他們的葡萄酒產品組合中。您必須記住，美國的兩家主要批發商傾向於將烈酒銷售與葡萄酒銷售隔離。好的？所以，他們在那裡產生了更大的影響。他們正在優化那裡的結構。再次強調，它們是私人公司。在這裡你只能透過一個被檢舉。所以，我不認為這是一個標誌。事實上，如果他們所說的話或我們聽到的是真的的話。我認為這對烈酒的整體消費來說是一件積極的事情，因為他們將把更多的精力投入到利潤驅動的事情上。他們不是上市公司，他們是私人公司，但他們以同樣的方式想要這筆錢。他們倆，大公司都有槓桿，他們需要產生它，他們將把他們的精力投入到仍然存在的業務中，那就是烈酒行業。

Okay, great. Thank you for that.

好的，太好了。謝謝你。

Thank you. Thank you, Rob.

謝謝。謝謝你，羅布。

The next question comes from Marc Torrente with Wells Fargo. Please go ahead.

下一個問題來自富國銀行的馬克‧托倫特 (Marc Torrente)。請繼續。

Hey, good morning. Thank you for taking my questions. You are into your typical contracting season. Now, I think this is when you have in the past made initial comments on visibility into the next year. So I guess how much of your plan do you think is committed at this point for 25 either through existing multiyear contracts or new contract renewals. And just on this visibility you have, how confident are you with the security of those commitments? You called out some contract non performance in the quarter. So just any color there would be helpful.

嘿，早安。感謝您回答我的問題。您正進入典型的合約季節。現在，我認為這是您過去對明年的可見性發表初步評論的時候。所以我猜你認為目前 25 歲的計劃中有多少是透過現有的多年合約或新合約續約而承諾的。就您所擁有的可見性而言，您對這些承諾的安全性有多大信心？您指出了本季的一些合約未履行情況。所以任何顏色都會有幫助。

Yeah, as it goes for 25 what we, when we, we gave you some of the color commentary on revenue and profitability that's through us analyzing all the business that's there. Who those contract customers are? Which ones we weeded out over it? The impact of sales as somebody asked earlier, did we contact our customers? We look at their sales history. They have a I have strong confidence in, in, in 2025. I think the visibility we have there is strong now. But if you're dropping revenue, part of it is we shrank that size of the business. Okay. So, we weeded through a lot of let's say the not the good situation there to get down to the core business because what Brandon and I discussed many times is we want to, we want to give you results that we can deliver. So, it's our obligation to come back to you and go. We've done our work and based on what we know today that we have good confidence in 25 in our Brown goods. We're not proud of the revenue number and the profit number for 2025 and comes to Brown's goods, but we have confidence in it and not only confidence for our analysts, for our investors, for our board, for our own employees.

是的，就像 25 一樣，我們透過分析所有業務，為您提供了一些關於收入和盈利能力的彩色評論。這些合約客戶是誰？我們淘汰了哪些？正如之前有人問的那樣，銷售的影響，我們是否聯繫了我們的客戶？我們查看他們的銷售歷史。他們對 2025 年充滿信心。我認為我們現在在那裡的知名度很高。但如果你的收入下降了，部分原因是我們縮小了業務規模。好的。因此，我們排除了很多不利於核心業務的情況，因為布蘭登和我多次討論的是我們想要的，我們想要給你我們可以提供的結果。所以，我們有義務回到你身邊然後離開。我們已經完成了我們的工作，並且根據我們今天所知道的情況，我們對 25 款棕色產品充滿信心。我們並不為2025 年的收入數字和利潤數字感到自豪，而且對布朗的產品充滿信心，但我們對此充滿信心，不僅對我們的分析師、對我們的投資者、對我們的董事會、對我們自己的員工有信心。

Okay? And then how much inventory do you think needs to be worked through out there previously? It sounded like you're generally comfortable with what was sort of out there in the channel from I guess the selling standpoint any more specifics on managing production versus supply. Is this going to be temporary Pullbacks? Are there more fixed costs that you can address? And I guess what are you hearing from actions of other suppliers who have also recently brought on capacity?

好的？那麼您認為之前需要處理多少庫存呢？聽起來你對通路中的情況普遍感到滿意，我想從銷售的角度來看，管理生產與供應的更多細節。這會是暫時的回調嗎？還有更多的固定成本可以解決嗎？我想您從最近也增加產能的其他供應商的行動中聽到了什麼？

Yeah, the question how much inventory out there is, is, is a good question. We do spend a lot of time trying to figure out who ho who's holding what you know, who are the brokers out there? Who are the multinationals inventory they have? Because remember they got substantial inventories as well. So, we, we constantly are looking at that and trying to analyze it. Do we have perfect visibility into it? No, no, that, that's the H1st. Do we know what we've sold and what we hear and what we see in some of the TV reports? Yes. So, there is inventory out there and it's held. But one of the things that people, the reason why we have, I think we haven't seen tremendous pricing pressure yet is because everybody is sitting and waiting, everybody is sitting here going like I may not, if I'm buying spot, I may not be buying spot right now. But I want to see how this plays out. I want to see how my own inventory plays out. I also, I think I've said this in the past, but now I'm saying it now is if you're a major supplier in our industry, you know, they're, they're, they're brands companies, okay? And one of the things that you will start seeing on the shelves and you already see it to a certain degree is they'll age up their their offerings, you know, for the longest time for years. And I know we've had this in prior calls. People couldn't sell anything over a four year old because we didn't keep up with it. Now, they got inventory. So you're going to see the players on the brand side start to offer seven year old, 10 year old, 12 year old products. They're, I don't speculate and I'm just speculating that they're going to dump that on the market. Could they sell some barrels? Yes or no? What you will see hit the market is P/E back companies that have invested in it, brokers that invested in it. But as Brandon, I've said many, many times that's a one off.

是的，庫存有多少是個好問題。我們確實花了很多時間試圖找出誰持有您所知道的東西，誰是那裡的經紀人？他們擁有哪些跨國公司庫存？因為請記住，他們也有大量庫存。所以，我們不斷地關注並嘗試分析它。我們對它有完美的了解嗎？不不不，那是H1。我們是否知道我們賣了什麼、我們在一些電視報道中聽到了什麼、看到了什麼？是的。所以，那裡有庫存並且被持有。但人們所面臨的原因之一是，我認為我們還沒有看到巨大的定價壓力，因為每個人都在坐著等待，每個人都坐在這裡，就像我可能不會那樣，如果我購買現貨，我現在可能不會購買現貨。但我想看看結果如何。我想看看我自己的庫存如何發揮作用。我也，我想我過去說過這一點，但現在我說的是，如果你是我們行業的主要供應商，你知道，他們是，他們是，他們是品牌公司， 好的？你將開始在貨架上看到的一件事是，你已經在某種程度上看到了，他們的產品會老化，你知道，多年來最長的時間。我知道我們在之前的通話中也遇到過這種情況。人們不能出售四歲以上的任何東西，因為我們沒有跟上。現在，他們有了庫存。所以你會看到品牌方開始提供7年、10年、12年的產品。他們是，我不是猜測，我只是猜測他們會把它扔到市場上。他們可以賣一些桶子嗎？是還是不是？你將在市場上看到的是市盈率支持的公司，他們投資了它，經紀人投資了它。但身為布蘭登，我已經說過很多很多次了，這只是一次性的。

But those are one offs. Once they dump that, then it's back to the hatch directly to the brand's growth. So look, the supply, the excess inventory was built all around huge optimism across the industry on American whiskey and that softened enough that people are sitting back and doing their jobs and going, oh, wait a minute, let's take a breath, let's analyze where we're at, right? Anything you want to add to that?

但這些都是一次性的。一旦他們放棄了這一點，那麼它就會直接回到品牌成長的孵化器。所以看，供應和過剩的庫存都是圍繞著整個行業對美國威士忌的巨大樂觀情緒而建立的，這種樂觀情緒已經足夠軟化，以至於人們坐下來做好自己的工作，然後，哦，等一下，讓我們喘口氣，讓我們分析一下我們現在在哪裡，對吧？您還有什麼要補充的嗎？

Yeah. As far as the cost market, you're exactly right. So firstly, in 2024 we have reduced our putaway on a net basis, you know, more, more than 30%. So that work's already begun this year. And as David said, it's going to continue next year as well. And and there is, yeah, there's a number of fixed costs that that will need to be absorbed. And the team has been working now for, you know, some time already on addressing that to mitigate those as much as possible.

是的。就成本市場而言，你是完全正確的。首先，到 2024 年，我們的淨庫存量減少了 30% 以上。所以這項工作今年已經開始了。正如大衛所說，明年也將繼續。是的，還有許多固定成本需要消化。您知道，該團隊現在已經花了一段時間來解決這個問題，以盡可能減少這些問題。

Okay, thanks guys.

好的，謝謝大家。

Thanks, Mark. Thank you, Mark.

謝謝，馬克。謝謝你，馬克。

The next question comes from Ben Klieve with Lake Street. Please go ahead.

下一個問題來自 Lake Street 的 Ben Klieve。請繼續。

All right. Thanks for taking my questions. Got one on the ingredient business. You noted an expectation that that business was going to improve here in the fourth quarter as some of the export ones kind of dissipated and you brought in some new domestic customers. I'm wondering if you can kind of help parse out those two part of the business. Can you talk about the kind of success year-to-date of the domestic business? That, that gives you, you know, a sense of optimism in the fourth quarter and then, and then really how, how material that export had one has been not only in the third quarter but year-to-date.

好的。感謝您回答我的問題。得到了一份關於配料業務的資訊。您指出，預計第四季度的業務將會有所改善，因為一些出口業務有所消散，並且您引入了一些新的國內客戶。我想知道您是否可以幫助解析業務的這兩部分。您能談談今年以來國內業務的成功嗎？這給你帶來了第四季度的樂觀情緒，然後，出口的材料不僅在第三季度，而且是今年迄今為止的情況。

Yeah. And I'll, I'll start. Yes. So for specialty protein business, which is a very high margin product line for us. A lot of those sales were in export specifically to Japan historically. And that's been, you know, due to the strength of the US dollar as it relates to the end, that's been a tremendous headwind for us, year-to-date. And while we did have some success in Q1 and Q2, about the life cycle of a new sale for the ingredients business takes time and it can take anywhere from 2 to 3 to 4 quarters to get something speced into a new product and actually make that sale. And there are two, you know, customers we had in mind for Q3 that we were anticipating, that we've made a lot of great ground with year-to-date and, those two customers, while they're still, while they're still planning to purchase, it's now got pushed into Q4. So the good news is we are making a lot of progress on that and, you know, we expect it to continue in the, you know, Q4 and then in the next year as well.

是的。我會，我會開始。是的。因此，對於特種蛋白質業務來說，這對我們來說是一條利潤率非常高的產品線。歷史上，其中許多銷售額專門出口到日本。你知道，由於美元與年底相關的強勢，今年迄今為止，這對我們來說是一個巨大的阻力。雖然我們在第一季和第二季確實取得了一些成功，但原料業務新銷售的生命週期需要時間，可能需要 2 到 3 到 4 個季度才能將某些內容納入新產品並實際生產出來銷售。你知道，我們預計第三季有兩個客戶，我們今年迄今已經取得了很大的進展，而這兩個客戶，當他們還在的時候，當他們還在的時候還在計劃購買，現在已經推到第四季了。因此，好消息是我們在這方面取得了很大進展，並且我們預計這種情況將在第四季度以及明年繼續下去。

Okay. And, and one clarifying question there were those two customers based in Japan or domestic or elsewhere?

好的。而且，有一個澄清問題，這兩個客戶是在日本、國內還是其他地方？

Yeah, thanks for letting me clarify them. Yeah, they are domestic. That's right.

是的，謝謝你讓我澄清它們。是的，他們是國內的。這是正確的。

Okay. All right. Very good. Okay, I appreciate you taking my question plenty more to talk about, but I'll leave it there. I'll get back into you.

好的。好的。非常好。好的，我很感激您對我的問題進行了更多討論，但我將其留在那裡。我會回到你身邊。

Thank you guys.

謝謝你們。

The next question comes from Sean McGowan with Roth capital markets. Please go ahead.

下一個問題來自羅斯資本市場的肖恩·麥高恩（Sean McGowan）。請繼續。

Hi. Thanks. First a quick one. Would you come back, you know, give them.

你好。謝謝。首先是快速的。你會回來嗎，你知道，給他們。

Yes. Can you hear me?

是的。你聽得到我嗎？

Yes, yes, sir. Okay. Okay. Yeah. Do you expect given the headwinds that you described that advertising as a percentage of revenue in 25 would be at a higher level than what we've seen in 24 so far?

是的，是的，先生。好的。好的。是的。考慮到您所描述的不利因素，您是否預計 25 年廣告佔收入的百分比會高於我們迄今為止在 24 年看到的水平？

Yeah. We'll, we'll give more detailed guidance. Sean in Q4 But right now, I can tell you our plan and expectation is still to continue investing for branded spirits between 14 and 16% of net sales in advertising and promotion. We still feel that that's a good level knowing that a lot of that spend is going towards our premium plus portfolio, which is about as David said on the prepared marks about half of our brand spirit sales. So right now, we're there's no change in thinking there. That is still as we view it, the, you know, the future of this, of this company and where we plan to grow in the future.

是的。我們將提供更詳細的指導。Sean 在第四季 但現在，我可以告訴你，我們的計劃和期望仍然是繼續將淨銷售額的 14% 到 16% 投資於品牌烈酒的廣告和促銷上。我們仍然認為這是一個很好的水平，因為我們知道大部分支出都用於我們的優質產品組合，正如大衛在準備好的標記上所說，這大約占我們品牌烈酒銷售額的一半。所以現在，我們的想法沒有改變。這仍然是我們所認為的，你知道的，這家公司的未來，以及我們計劃未來發展的地方。

Okay. Thank you. And then a kind of a more general question, you know, given not only the change in the landscape and your outlook but also the change in the stock price. Do you, do you see a change in your capital allocation plans regarding, you know, sharing purchases or, or our acquisitions? You know, just general commentary there. Has there been a shift?

好的。謝謝。然後是一個更普遍的問題，你知道，不僅考慮到情況和你的前景的變化，還考慮到股價的變化。您是否認為您的資本分配計劃發生了變化，涉及共享購買或我們的收購？你知道，那裡只是一般性評論。有轉變嗎？

Yeah. So yeah, great question. We talked to some of this already but so M&A remains you know, a very high priority for us. We're always looking to, to do you do something that's going to strengthen our position within branded spirits. For Capex, we've said on these calls before Sean as you know that we, we view 2024 as the high-water mark for cap for capital expenditures this year, we're now expecting $78 million. We'll share more specifically what our outlook is for 2025 on the Q4 call, but it will be reduced from this year. We're, we're being consistent there and you know, another big you know, capital allocation priority has been put away. And David's already said that we're going to, that's going to be driven down to really what we need for our own brands next year. So, yeah, it is shifting. You know, from the Capex and from the put away standpoint, both of those should be free cash flow, creative. All the things being equal as it relates to dividend, We still, you know, we feel the dividend we're paying today is manageable and it's still a good way to reward shareholders over time. And then, yeah, for repurchasing as, as we discussed, you know, the board did approve $100 million share buyback plan in in the first quarter. There's no there's no end date to that. So that's open ended. We bought about $10 million worth of shares to date. But you know, when you look at the future of this company and we're to add shareholder value, we like some of our other priorities ahead of the share buybacks, but it's still something we're going to continue to watch.

是的。是的，很好的問題。我們已經討論過其中的一些問題，但併購仍然是我們的首要任務。我們一直希望您能做一些事情來鞏固我們在品牌烈酒中的地位。對於資本支出，我們在肖恩之前就這些電話會議說過，我們認為 2024 年是今年資本支出上限的高水位線，我們現在預計為 7800 萬美元。我們將在第四季度電話會議上更具體地分享我們對 2025 年的展望，但會比今年有所減少。我們在那裡保持一致，你知道，另一個大公司，資本配置優先權已經被擱置了。大衛已經說過，我們明年將降低到我們自己品牌真正需要的水平。所以，是的，它正在轉變。你知道，從資本支出和儲存的角度來看，這兩者都應該是自由現金流和創造性的。在與股息相關的所有條件相同的情況下，我們仍然認為我們今天支付的股息是可以管理的，並且隨著時間的推移，這仍然是獎勵股東的好方法。然後，是的，對於回購，正如我們所討論的，董事會確實在第一季批准了 1 億美元的股票回購計劃。不，沒有結束日期。所以這是開放式的。迄今為止，我們購買了價值約 1000 萬美元的股票。但你知道，當你展望這家公司的未來時，我們會增加股東價值，我們喜歡在股票回購之前優先考慮一些其他事項，但這仍然是我們將繼續關注的事情。

Okay. Thanks for that clarity. I appreciate that.

好的。感謝您的清晰說明。我很欣賞這一點。

The next question comes from Mitch Pinheiro with Sturdivant, please go ahead.

下一個問題來自 Mitch Pinheiro 和 Sturdivant，請繼續。

Yeah. Hey, good morning.

是的。嘿，早安。

So on me.

所以對我來說。

So just getting to, you know, the, the barrel distillate that you've put away, you know, it's up like $40 million roughly year over year and I know there's some inflation in those numbers but is all that is, is all that related to your own, you know, your own branded spirit brand.

所以，你知道，你儲存的桶裝蒸餾物，你知道，它比去年同期大約增加了 4000 萬美元，我知道這些數字存在一些通貨膨脹，但僅此而已，僅此而已與你自己的，你知道的，你自己的品牌烈酒品牌有關。

Yeah. Just to clarify year-to-date, we, we put away on a net basis, match approximately $32 million worth of inventory last year for the full year of 2023. We put away north of $51 million. So, we are down, you know, more than 30% this year. And we expect to, we expect that year end put away to be 30 to $35 million, which is up a little bit from what we talked on previous calls. But really that has less to do with our put away in production and more to do with our less paid sales coming in on the spot market. And yeah, as we move forward, you know, we feel really good about our, our inventory position. We, we feel like, you know, we put away, you know, record amounts in the in, you know, in the last say 2 to 3 years. So we feel like we're in a unique position where we can hit pause for some time as we plan to do in 2025 for Distilling Solutions speculative put away. And and monetizing the inventory we have historically, the majority of our, you know, put away has been for Distilling Solutions. That that relationship has become, you know, less less of a proportion to brands put away in 2024. And as David said next year, our plan is any barrel we put away at this point in time is going to be for our brands, for its portfolio.

是的。澄清一下，今年迄今為止，我們以淨值計算，為 2023 年全年儲備了價值約 3,200 萬美元的庫存。我們存入了超過 5,100 萬美元。所以，今年我們的業績下降了 30% 以上。我們預計，我們預計年終儲備將達到 3000 至 3500 萬美元，這比我們在之前的電話會議上談到的略有增加。但實際上，這與我們的生產庫存關係不大，而是與我們在現貨市場上的較少支付的銷售有關。是的，隨著我們前進，你知道，我們對我們的庫存狀況感覺非常好。我們感覺，你知道，我們在過去的 2 到 3 年裡記錄了金額。因此，我們覺得我們處於一個獨特的位置，我們可以暫停一段時間，就像我們計劃在 2025 年對蒸餾解決方案投機性擱置所做的那樣。透過將我們歷史上擁有的庫存貨幣化，我們儲存的大部分庫存都用於蒸餾解決方案。你知道，這種關係在 2024 年品牌庫存中所佔的比例已經不再那麼小了。正如大衛明年所說，我們的計劃是，我們目前儲存的任何桶子都將用於我們的品牌及其產品組合。

Yeah, I mean, I mean that, that, that that's good color. Thank you for that. But the I would have to imagine you would never disclose this. But the average age of your barrel distillate has has I guess that's been increasing over the years. I know you're putting a lot more away now, but you still had a fair amount before your accelerated put away. I mean, the the age only gets more valuable in, in, in generally speaking and all your premium whiskeys are all higher age products and that's what's growing in the premium plus. So is it fair to assume that the your age, your barrel distillate is higher aged in inventory now?

是的，我的意思是，我的意思是，那個，那個顏色很好。謝謝你。但我不得不想像你永遠不會透露這一點。但我猜你的桶裝蒸餾物的平均年齡多年來一直在增加。我知道你現在儲存了更多的錢，但在加速儲存之前你仍然有相當多的錢。我的意思是，一般來說，年份只會變得更有價值，所有優質威士忌都是年份較高的產品，這就是優質威士忌的成長。那麼，假設您的桶裝餾出物的年齡現在庫存中的年齡較高是否公平？

Yeah, it's a little tricky because you know, the age barrels we sell in bottle tend to be, you know, 34 more years old. So meanwhile, anything we put away, for example, this year is starting off at zero years. So, it's going to keep that average age and right, which we don't disclose that for competitive purposes, you know, pretty, you know, pretty, you know, pretty low in terms of, you know, less than, you know, 43 years. But, but yeah, I think as David said, the, the tendency right now in the market is, is to age up, that's a really good way to, to, you know, resonate your brand with consumers in this market and to differentiate yourself. And to your point, you know, these, you know, barrels tend to, you know, grow in value with age and not the other way around. It's just distinct to our industry. So, you know, we've been here before this number of years ago where we slowed our put away. That was pretty short lived as you all recall because this, this market can be dynamic and fluid. But that's that, that's the beauty is we can, you know, plan as we are now for 2025. And if things change then, you know we'll change with them.

是的，這有點棘手，因為你知道，我們出售的瓶裝酒桶的年齡往往是 34 年以上。因此，同時，我們擱置的任何東西，例如今年，都是從零開始的。因此，它將保持平均年齡和權利，出於競爭目的，我們不會透露這一點，你知道，漂亮，你知道，漂亮，你知道，相當低，你知道，低於，你知道，43歲。但是，但是，是的，我認為正如大衛所說，目前市場的趨勢是年齡增長，這是一個非常好的方法，可以讓您的品牌與這個市場的消費者產生共鳴並實現差異化自己。就你的觀點而言，你知道，這些桶子往往會隨著年齡的增長而增值，而不是相反。這與我們的行業截然不同。所以，你知道，我們在幾年前就已經出現過這種情況，我們放慢了儲存速度。大家都記得，那是相當短暫的，因為這個市場可以是充滿活力和流動性的。但就是這樣，這就是我們可以按照現在的方式為 2025 年制定計劃的美妙之處。如果事情發生變化，你知道我們也會隨之改變。

Yeah, I I'd add just one piece of that. If you look at the brand side of the business that we have, we've intentionally grown our aged. Okay? Because of what I said earlier, we want to be able to age up. So what Brandon is referring to is the MG put away for future sales and, and, and yes, I mean, we've been fortunate that we were able to sell those off or refill it as fast as we can. So, you know, you've got, you know, two years ago, one year ago in there. And, but I do think to your point that that only gets better with time again, this market is not going away, it's going to push down, it's going to consolidate a little but it's there. And this is why we were able to say, you know, we remain committed to this, this section of our business. It's a good cash generating piece of our business. It's just not going to be our growth engine, the future.

是的，我只想添加其中的一小部分。如果你看看我們業務的品牌面，你會發現我們有意讓自己變得更老。好的？正如我之前所說，我們希望能夠變老。因此，布蘭登指的是為未來銷售而存放的 MG，並且，是的，我的意思是，我們很幸運，我們能夠盡快出售或重新填充它們。所以，你知道，你知道，兩年前、一年前。而且，但我確實認為，就你的觀點而言，隨著時間的推移，情況只會變得更好，這個市場不會消失，它會向下推，它會稍微鞏固，但它就在那裡。這就是為什麼我們能夠說，你知道，我們仍然致力於我們業務的這一部分。這是我們業務中一個很好的創收業務。它只是不會成為我們的成長引擎和未來。

And, and just one other thing on that. And, and David said this, but, you know, we are, we do be ourselves and we believe ourselves to be one of one of the only contract suppliers that can offer the scale of age and distillate as we can. And so David shared that one of our strategies is, is selling con you know, barrels internationally and a lot of what they're looking for is aged and they also want that assurance that they can, you know, have, have more age to come in the future. So our ability to both have to sell, but also distill today to sell to them again in the future, we feel really differentiates us in the future as we go forward.

而且，還有另一件事。而且，大衛說過這一點，但是，你知道，我們確實是我們自己，我們相信自己是唯一能夠提供陳年規模和餾分的合約供應商之一。因此大衛分享說，我們的策略之一是，在國際上銷售騙局，你知道，桶，他們正在尋找的很多東西都是陳年的，他們也希望得到保證，他們可以，你知道，有更多的年齡未來會來。因此，我們既要銷售，又要在今天提煉，以便將來再次出售給他們，我們覺得在我們前進的過程中，我們在未來確實與眾不同。

Oh, thank you for that. And then you know, you expanded luxury this year. Is that with, with a little bit of the slowdown? Is that going to have some fixed cost, negative leverage in 2025?

哦，謝謝你。然後你知道，今年你擴大了奢侈品範圍。是不是有一點點放緩？到 2025 年，這是否會產生一些固定成本、負槓桿？

Yeah, good question. Right now we reserve the right to maybe share a little bit more on the Q4 call but that type of headwind is not anything that we anticipate at this point in time is going to be material.

是的，好問題。目前，我們保留在第四季度電話會議上分享更多資訊的權利，但我們目前預計這種阻力不會產生重大影響。

Okay. Then getting back to the just, it, it does surprise me that industry wide, everybody sorts of missed the slowdown. I'm curious whether any of that has to do with, any on premise off premise trends that that may have been missed. And then the second question is what also may have been missed, which, you know, I've been seeing for a while is, you know, consumer liquor cabinet, destocking. Once you can, once you're able to get your favorite brand, when, you know, back during the COVID error, you know, it was hard to find it. If you found a bottle or two, you bought two or three or four bottles because you weren't sure you're ever going to see them again.

好的。然後回到正義，它確實讓我感到驚訝，整個行業，每個人都錯過了經濟放緩。我很好奇這是否與任何可能被錯過的內部部署外的趨勢有關。第二個問題是，也可能錯過了什麼，你知道，我已經看到有一段時間了，你知道，消費酒櫃，去庫存。一旦你可以，一旦你能夠找到你最喜歡的品牌，當你知道，在新冠疫情期間，你知道，很難找到它。如果你發現了一兩瓶，你就會買兩瓶、三瓶或四瓶，因為你不確定是否會再看到它們。

And I guess at some point consumers decided, you know, they felt more comfortable with starting to see their favorite brands on the shelves and starting to, you know, instead of buying it just, you know, going through their own cabinet and reducing their own inventory. And I guess there's no way has you done any research on, on that part of the equation as far as the slowdown in consumption is concerned? And just also the comments on the premise versus on premise versus off premise missing, missing the slow down here.

我想在某個時候，消費者決定，你知道，他們對開始在貨架上看到他們最喜歡的品牌感到更舒服，並且開始，你知道，而不是僅僅購買它，你知道，透過他們自己的櫥櫃並減少他們的購買量。我想您沒有對方程式的這一部分就消費放緩進行過任何研究嗎？而且還缺少對前提、內部和外部的評論，錯過了這裡的減速。

And I, I, I'll take that one. So in general, if you think about on premise versus off premise, the mix is roughly the same. But the problem post COVID, you know, there's not as many as on premises there was. So you're still seeing that being relaunched over time, I'm not going to attribute that mix to the industry's view on why it happened. I I tend to take more of a macro view on this. I tend to think that, you know, we're in the middle of an election, we've had all kinds of interesting things going on in the environment. You know, consumer spending is a little bit slower than this. You know, it, it's, I think there's a lot of external pressures going on here that is making that consumer, make different choices. All right. And so I don't want to speculate on they're selling more there or not selling more there. I'm I'm attributing to that to that consumer. I also bring it back to this COVID piece having done this for 30 years in the brands, you know what we're selling back to is about what we should be in the industry. COVID was, you know, great for our industry for the period of time. And now when we all reflect back and we look at these last few years of correction and it is inventory stocking at the wholesaler. It is inventory stocking in the pantry. And you got, you got multitudes of variables coming to a to a head and those two shall pass. Now, what we all are terrible at doing myself and everybody else in the industry is telling you exactly when that's going to pass. You know why? Because we can't read the consumers' minds. We can only watch what they're doing and react to their needs.

我，我，我會接受那個。因此，總的來說，如果您考慮內部和外部，則混合情況大致相同。但新冠疫情之後的問題，你知道，問題沒有現場那麼多。因此，隨著時間的推移，您仍然會看到重新啟動，我不會將這種組合歸因於行業對其發生原因的看法。我傾向於更宏觀地看待這個問題。我傾向於認為，你知道，我們正處於選舉之中，我們的環境中發生了各種有趣的事情。要知道，消費者支出比這慢一些。你知道，我認為這裡存在著許多外部壓力，促使消費者做出不同的選擇。好的。因此，我不想推測他們在那裡銷售更多或不在那裡銷售更多。我將其歸因於該消費者。我還把它帶回這篇關於新冠疫​​情的文章上，我在品牌領域已經做了 30 年了，你知道我們要回饋的是我們在這個行業中應該做的事情。您知道，新冠疫情在一段時間內對我們的產業非常有利。現在，當我們回顧過去幾年的調整時，我們發現這是批發商的庫存庫存。這是食品儲藏室的庫存儲備。你得到了，你有很多變數達到了頂峰，這兩個都會過去。現在，我們自己和業內其他人最不擅長做的就是告訴你這一切何時會過去。你知道為什麼嗎？因為我們無法讀懂消費者的想法。我們只能觀察他們在做什麼並對他們的需求做出反應。

Okay? Thank you. Appreciate the appreciate the answers.

好的？謝謝。欣賞欣賞答案。

Thank you much.

非常感謝。

This concludes our question and answer session. I would like to turn the conference back over to David Bratcher for any closing remarks.

我們的問答環節到此結束。我想將會議轉回給大衛·布拉徹（David Bratcher）發表閉幕詞。

Thank you very much. Everybody for listening. I, as we said, you know, we're not pleased with our results, but what I'd like to take a moment to remind everybody, the MGP is a transformation story. All right, we clearly said what we intend to be in the future. We intend to become a premier branded spirit's company. Transformation for MGP is nothing new. If you go back 10 years ago, MGP was a white goods producer. The margins were thin, very skinny. They transformed it into a contract. Brown goods stilling. Their timing was perfect. They rolled the wave up now and started with the acquisition of Luxco. They're transforming it into a branded spirits company. And since the day I took the seat on January 1, we have consistently said every earnings call everything starting with the very first release of what we believe we will become. That is the plan for the future. Yes, our Brown goods business deteriorated faster than we anticipated. I think it deteriorated to some of the questions faster than anybody across the industry anticipated. But thank goodness, we have a vision of what we want to become. All right. And that is a premier branded spirits company. That's what I want our analysts, our investors, our employees, our board, everyone to know it's a transformation story and we're going to, we're going to accomplish that mission. So with that, thank you for your interest in our company for joining us today for our third quarter call and we definitely look forward to talking to you in the fourth quarter.

非常感謝。大家來聽聽。正如我們所說，我們對結果並不滿意，但我想花點時間提醒大家，MGP 是一個轉型故事。好吧，我們已經明確地說出了我們未來的打算。我們打算成為一流的品牌烈酒公司。MGP 的轉型並不是什麼新鮮事。如果你回到 10 年前，MGP 是一家白色家電生產商。邊緣很薄，非常薄。他們把它變成了一份合約。棕色物品靜止。他們的時機非常完美。他們現在掀起浪潮，從收購 Luxco 開始。他們正在將其轉變為品牌烈酒公司。自從 1 月 1 日我就任以來，我們一直在每次財報電話會議上表示，一切都從我們相信我們將成為的第一個版本開始。這就是未來的計劃。是的，我們的棕色商品業務惡化的速度比我們預期的要快。我認為某些問題的惡化速度比業內任何人預期的都要快。但謝天謝地，我們對自己想成為的人有一個願景。好的。這是一家一流的品牌烈酒公司。這就是我希望我們的分析師、投資人、員工、董事會、每個人都知道這是一個轉型故事，我們將完成這個使命。因此，感謝您對我們公司的興趣，今天參加我們的第三季電話會議，我們非常期待在第四季度與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。