UTZ Brands Inc (UTZ) 2024 Q2 法說會逐字稿

Hello, and welcome to the UTZ Second Quarter 2024 earnings call. This call is being recorded and all participants are currently in a listen-only mode. (Operator Instructions) I will now turn the call over to Kevin Powers, Senior Vice President of Investor Relations.

您好，歡迎參加 UTZ 2024 年第二季財報電話會議。此通話正在錄音，所有參與者目前都處於只聽模式。（操作員指示）我現在將電話轉給投資者關係高級副總裁 Kevin Powers。

Thank you, Jeremy, and good morning, everyone. Thank you for joining us today for a live Q&A session for our second quarter results. With me today are Howard Friedman, CEO; Ajay Kataria, CFO; and Carey Devore, COO and Chief Transformation Officer. I hope everybody had a chance to listen or read our prepared remarks that we posted this morning and also a presentation that is available on our Investor Relations website.

謝謝傑里米，大家早安。感謝您今天參加我們第二季業績的現場問答環節。今天與我在一起的有執行長霍華德‧弗里德曼 (Howard Friedman)；阿傑‧卡塔里亞 (Ajay Kataria)，財務長；營運長兼首席轉型長 Carey Devore。我希望每個人都有機會聆聽或閱讀我們今天早上發布的準備好的言論，以及我們投資者關係網站上提供的簡報。

Before we begin today's Q&A session, just a few housekeeping items. Please note that some of our comments today will contain forward-looking statements based on our current view of our business and actual future results may differ materially. Please see our recent SEC filings, which identify the principal risks and uncertainties that could affect future performance.

在我們開始今天的問答環節之前，先簡單介紹一些內務事項。請注意，我們今天的一些評論將包含基於我們目前對業務的看法的前瞻性陳述，未來的實際結果可能存在重大差異。請參閱我們最近向 SEC 提交的文件，其中確定了可能影響未來業績的主要風險和不確定性。

In today's call, we will discuss certain adjusted non-GAAP financial measures, which are described in more detail in this morning's earnings materials. Reconciliation of non-GAAP financial measures and other associated disclosures are contained in our earnings materials that are posted on our website.

在今天的電話會議中，我們將討論某些調整後的非公認會計準則財務指標，這些指標在今天早上的收益資料中進行了更詳細的描述。非公認會計準則財務指標和其他相關揭露的調節包含在我們網站上發布的獲利資料中。

And with that, operator, we are ready to now to open up the line for questions.

接線員，我們現在準備好開通提問熱線了。

All right, perfect. (Operator Instructions) Our first question comes from the line of Andrew Lazar from Barclays. Please go ahead.

好吧，完美。（操作員說明）我們的第一個問題來自巴克萊銀行的安德魯·拉扎爾（Andrew Lazar）。請繼續。

Great. Thanks so much. Good morning, everybody.

偉大的。非常感謝。大家早安。

Morning, Andrew.

早安，安德魯。

Thanks again for shifting around your sort of reporting schedule, and it's really helpful on a busy morning.

再次感謝您調整報告日程，這在忙碌的早晨確實很有幫助。

Howard, I guess 3% or about call it 3% volume-driven organic sales growth for the full year certainly requires, as you know, a healthy step-up in growth in the second half, all in the context of a more competitive salty category. What drives the confidence in this outlook? I guess, how much of the step-up is coming from sort of the whitespace distribution actions that are maybe a bit more in your control or sort of locked in, if you will, versus the underlying business? And what is enabling UTZ to sort of raise the percent of sales on promo quite a bit less than the category average? And why would that be sustainable? Thanks so much.

霍華德，我猜全年3% 或大約3% 的銷量驅動的有機銷售增長肯定需要，正如你所知，下半年的健康增長，所有這一切都是在更具競爭力的鹹味的背景下進行的。是什麼推動了人們對這前景的信心？我猜想，有多少提升來自於某種空白分佈操作，這些操作可能更多地在您的控制範圍內，或者如果您願意的話，與基礎業務相比，有點鎖定？是什麼讓 UTZ 能夠將促銷銷售額的百分比提高得遠低於同類產品的平均值？為什麼這是可持續的？非常感謝。

Yes. I appreciate the question. I think the first thing I would offer you is that our results are really predicated on us continuing to execute against the strategies that we had at Investor Day. And as you know, one of the bigger ones for us is this geographic whitespace opportunities that we have, not only in our expansion markets, but also being able to bring some of our powerful brands into our existing core markets.

是的。我很欣賞這個問題。我想我要向您提供的第一件事是，我們的結果實際上取決於我們繼續執行我們在投資者日制定的策略。如您所知，對我們來說更大的機會之一是我們擁有的地理空白機會，不僅在我們的擴張市場中，而且能夠將我們的一些強大品牌帶入我們現有的核心市場。

And I think what you saw in the quarter and what we expect going forward is largely for that to continue to be the case. We're seeing good distribution gains in already secured retailers as we go forward, certainly in our unmeasured channels, as we have continued to address where consumers are shifting and shopping.

我認為您在本季度看到的情況以及我們對未來的預期很大程度上是為了繼續這種情況。隨著我們的前進，我們看到已經有保障的零售商取得了良好的分銷收益，尤其是在我們無法衡量的管道中，因為我們繼續解決消費者轉移和購物的問題。

We are -- have had better availability in those channels than we've had than we've historically had, which has been sort of accommodating to our approach. And then we do have a meaningful step-up in A&C. It's still modest by almost any standard that I would apply, but you went from 40% to 60% and our innovation is breaking. It's starting to move into -- checked into distribution. It kind of came out in the second quarter, and we would expect that momentum to build as well. Certainly understand the focus on the promotional environment, and the one thing that I'm particularly proud of is our capability building over the last 12, 15 months, our revenue growth management capabilities and our marketing capabilities really allow us to be disciplined and flexible as the environment shifts, and as the environment shifts, we can shift with it. So yes, certainly the environment is -- it will continue to evolve. That's just life in our industry, and we intend to remain flexible and evolve with.

我們在這些管道中擁有比以往更好的可用性，這在某種程度上適應了我們的方法。然後我們在 A&C 方面確實取得了有意義的進展。按照我所採用的幾乎任何標準來看，這仍然是適度的，但從 40% 到 60%，我們的創新正在突破。它開始進入——檢查分配。它在第二季度出現，我們預計這種勢頭也會增強。當然理解對促銷環境的關注，我特別自豪的一件事是我們在過去 12、15 個月的能力建設，我們的收入增長管理能力和營銷能力確實讓我們能夠紀律嚴明且靈活，環境在變化，隨著環境的變化，我們也可以跟著改變。所以，是的，環境肯定會繼續發展。這就是我們行業的生活，我們打算保持靈活性並不斷發展。

Thanks so much.

非常感謝。

Our next question comes from the line of Peter Galbo from Bank of America. Please go ahead.

我們的下一個問題來自美國銀行的 Peter Galbo。請繼續。

Hey, guys. Good morning. Thanks for taking the question.

嘿，夥計們。早安.感謝您提出問題。

Hey, Pete.

嘿，皮特。

Howard, I just really wanted to pick up on the back of Andrew's question, particularly around the competitive environment. And I think your largest competitor has really called out two subcategories, you know, unflavored potato chips and then tortilla chips, kind of as the are the areas where we could potentially see more promotional activity. And that obviously is a pretty large portion of your portfolio. So maybe you can just give us a bit more detail on how you're thinking about those kind of two large subcategories within the product portfolio.

霍華德，我真的很想回答安德魯的問題，特別是關於競爭環境的問題。我認為你最大的競爭對手確實提出了兩個子類別，你知道，無味薯片和玉米片，就像我們可能會看到更多促銷活動的領域一樣。這顯然是你投資組合中相當大的一部分。因此，也許您可以向我們提供更多有關您如何考慮產品組合中這兩個大子類別的詳細資訊。

Yes. Thanks, Pete. I appreciate the question. And I think, look, there are a couple of things that are unique to our business, and I suspect we'll continue to be, and again, we hit some of these themes at Investor Day, obviously the geographic whitespace and the opportunity for us to continue to further penetrate those spaces with our brands gives us some confidence that we are able to compete across the industry, right?

是的。謝謝，皮特。我很欣賞這個問題。我認為，看，我們的業務有一些獨特之處，我懷疑我們將繼續如此，我們在投資者日再次觸及其中一些主題，顯然是地理空白和機會我們繼續以我們的品牌進一步滲透這些領域，這讓我們有信心能夠在整個產業中競爭，對嗎？

And second is we are and we've talked a little bit about being a house of brands that kind of feel sometimes like we talk a lot about geography. When we talk a little bit less about about brand building and kind of our portfolio of consumer brands. And if you're a consumer who is looking for an unflavored potato chip, we certainly obviously have that. But we also have opportunities, if you are a consumer looking for positive choices in our Boulder Canyon business, or flavors and Zapps -- our flavored business is Zapps.

其次，我們確實談論了一些關於成為品牌之家的事情，有時感覺就像我們談論了很多關於地理的話題。當我們少談論品牌建立和我們的消費品牌組合。如果您是一位正在尋找無味薯片的消費者，我們當然可以提供。但如果您是消費者，在我們的 Boulder Canyon 業務或口味和 Zapps 中尋找積極的選擇，我們也有機會——我們的口味業務是 Zapps。

So we do have a fairly broad portfolio of brands that consumers can opt into up and down the price ladder as well. For a more value-conscious consumer who is looking for an absolute price point, we have items that work there as well. So I think overall, we feel really good about the portfolio. The consumers can opt into, our revenue management skills are getting much sharper every quarter. And we're able to now show we have clarity around price gaps and where we need to be.

因此，我們確實擁有相當廣泛的品牌組合，消費者也可以根據價格階梯進行選擇。對於那些尋求絕對價格點、更注重價值的消費者來說，我們也有適合他們的產品。所以我認為總的來說，我們對這個投資組合感覺非常好。消費者可以選擇加入，我們的收入管理技能每季都變得更加敏銳。我們現在能夠證明我們已經清楚地了解價格差距以及我們需要達到的目標。

But all -- across the price ladder and across channels, and the last thing is, again, I think on the availability side, probably the thing that we're -- we continue to focus on is making sure that we're available across where consumers shop, whether it is in traditional groceries or club stores or in e-commerce and mass. And so in all of those places right now, we are making sure we have the right assortment. And so it's not just an unflavored potato chip or tortilla chip environment for us. It's a far broader playing field that I think we can compete on.

但所有 - 跨越價格階梯和跨渠道，最後一件事是，我再次認為在可用性方面，可能我們繼續關注的事情是確保我們可以跨渠道使用消費者購物的地方，無論是在傳統雜貨店或俱樂部商店，還是在電子商務和大眾商店。因此，現在在所有這些地方，我們正在確保我們擁有正確的品種。因此，對我們來說，這不僅僅是一個無味的薯片或玉米片環境。我認為這是一個更廣闊的競爭環境，我們可以在其中競爭。

Great. Thanks for that. And maybe just a very quick follow-up. A couple of questions this morning. Just on kind of the raise on EPS guidance, but not on EBITDA, particularly given kind of the 2Q over-delivery. So just curious, kind of how you're thinking about leaving flex there? Any sort of upside to be reinvested either in the prize or SG&A and in the second half? And just how you think about that setting you up for '25. Thanks very much.

偉大的。謝謝你。也許只是一個非常快速的後續行動。今天早上有幾個問題。只是每股收益指引的提高，但 EBITDA 沒有提高，特別是考慮到第二季的超額交付。所以只是好奇，你是如何考慮將 Flex 保留在那裡的？在獎金或SG&A以及下半年再投資有什麼好處嗎？以及你如何看待為 25 歲做好準備。非常感謝。

Yes.

是的。

Yes. I think first, just a reminder in our in our current P&L, a lot of the SG&A growth that you saw was really being driven by marketing investments year-over-year. So again, I think where we're executing our strategy well, I think, look, we've been paying attention to the competitive environment as well. We're aware of what that environment may look like in the back half, but we want to make sure that we can remain flexible. And so it's important to us that we have the tools we need to work -- to address the competition in a targeted way as required. And if that -- we don't wind up using those resources, great, but we have plenty of places where we can still invest.

是的。我認為首先，在我們目前的損益表中提醒一下，您看到的許多銷售管理費用成長實際上是由行銷投資逐年推動的。所以，我認為，在我們很好地執行我們的策略的地方，我們也一直在關注競爭環境。我們知道後半場的環境會是什麼樣子，但我們希望確保我們能夠保持靈活性。因此，對我們來說重要的是，我們擁有工作所需的工具——根據需要有針對性地應對競爭。如果那樣的話——我們最終不會使用這些資源，那就太好了，但我們仍然有很多地方可以投資。

As far as the EPS, I'll turn it to Ajay?

至於 EPS，我會把它交給 Ajay 嗎？

Yes.

是的。

So the EPS guidance really raised because of the revised assumptions on effective tax rate that you saw, also a step down on core D&A, which was a little slightly higher than what we expected from the transaction.

因此，每股盈餘指引確實提高了，因為您看到了對有效稅率的修改假設，同時核心 D&A 也有所下降，這比我們對交易的預期略高一些。

Our next question comes from the line of Michael Lavery from Piper Sandler. Please go ahead.

我們的下一個問題來自 Piper Sandler 的 Michael Lavery。請繼續。

Thank you. Good morning. I just recognized from Investor Day and how you've laid it all out, how much savings opportunity there is and we're seeing that, I guess just given that it seems to be tracking ahead of schedule. Can you also give us a sense if the savings are not only faster but bigger than you had kind of first assessed and it's not -- I know you don't want to change any target now or you would have, but is there more that you have a line of sight on even just a few months ago? And is that part of what's helping it come in so much more quickly?

謝謝。早安.我剛剛從投資者日認識到，你們是如何佈局的，有多少儲蓄機會，我們正在看到這一點，我想只是考慮到它似乎提前了。您能否告訴我們，節省的速度不僅比您最初評估的更快，而且更大，但事實並非如此——我知道您現在不想改變任何目標，或者您本來會改變任何目標，但還有更多嗎？這是幫助它更快實現的部分原因嗎？

Yes, I appreciate the question, Mike. There's no question that from a supply chain optimization perspective, we are coming in quicker. Obviously, we did -- we were able to execute the planned dispositions, and we went from 13 plants at Investor Day to eight at this point while maintaining our supply base and being secure that we can continue to service our business the way retailers and obviously our independent operators and consumers would expect.

是的，我很欣賞這個問題，麥克。毫無疑問，從供應鏈優化的角度來看，我們的進展速度更快。顯然，我們做到了——我們能夠執行計劃的處置，我們從投資者日的13 家工廠增加到目前的8 家，同時維持我們的供應基礎，並確保我們能夠繼續以零售商和顯然的方式為我們的業務提供服務。

But the upside for us is it also has allowed us to really narrow our focus down to those eight plants, integrate work systems and some other places. So productivity is coming in ahead of where we expected. We've always talked a little bit about the opportunity for us to expand gross margins and then decide how to deploy them in marketing distribution gains as well as capability building.

但對我們來說，好處是它也使我們能夠真正將重點縮小到這八家工廠，整合工作系統和其他一些地方。因此，生產率超出了我們的預期。我們總是談論一些擴大毛利率的機會，然後決定如何部署在行銷分銷收益和能力建設中。

And I think we are we have confidence through the year. And as Ajay mentioned in the prepared remarks, we would expect that sets us up nicely for 2025 as well.

我認為我們對這一年充滿信心。正如 Ajay 在準備好的演講中所提到的那樣，我們預計這也將為 2025 年做好準備。

That's great. And just a follow up on some of the top line color that you just gave. You touched on the differentiated brands like Boulder Canyon and Zapps, Boulder Canyon, of course, is on fire right now. But that's had been -- certainly has slowed. Can you just give a sense of what's ahead there? How much of it is just comp-driven, what should we expect for how that brand plays out going forward?

那太棒了。只是對您剛剛提供的一些頂線顏色進行跟進。您談到了像 Boulder Canyon 和 Zapps 這樣的差異化品牌，當然，Boulder Canyon 現在很火爆。但這肯定已經放緩了。能否介紹一下未來的狀況？其中有多少只是由競爭驅動的，我們對該品牌未來的表現該有何期待？

Yes, I definitely agree that those two businesses are a little bit of a tale of two cities. Boulder Canyon is growing quite nicely. It's got a great position in the marketplace and high perceived value for both the consumer as well as for retailers, really driven by avocado oil and the non seed oil folks.

是的，我絕對同意這兩家企業有點像是兩個城市的故事。博爾德峽谷生長得相當不錯。它在市場上佔有重要地位，對消費者和零售商來說都有很高的感知價值，這實際上是由酪梨油和非種子油人士推動的。

We also have Boulder Canyon Poppers that is launching now, which is kind of, if you think about our company overall, a cheese ball is something we know a lot about. And we're very proud of and being able to bring that into another subcategory under that brand, just kind of shows the elasticity of that brand and what we can do it as we go forward. So that is a lot about distribution gains and a lot about high velocity. So we're getting in and consumers are buying more of it. So great story there.

我們現在也推出了 Boulder Canyon Poppers，如果你考慮一下我們公司的整體情況，起司球是我們非常了解的東西。我們非常自豪能夠將其帶入該品牌下的另一個子類別，這只是展示了品牌的彈性以及我們在前進過程中可以做的事情。所以這與分配增益和高速有關。所以我們正在介入，消費者正在購買更多的產品。那裡有很棒的故事。

Yes. I think on Zapps, we talked about this last quarter, the opportunities we have in a price pack architecture and down the street C-store and making sure that we address those those areas as we move forward and Zapp's is coming in a little bit slower than we would have expected. Potato Chips specifically is a -- is an area of continued emphasis for us and then the pretzel lap of the new item from a year ago, which we now have our two new items out at this point, our spicy cajun and our brown sugar, which are now in market and on picking up. So we would expect that trend to normalize. Potato chips is the area we need to continue to work.

是的。我認為在Zapps 上，我們在上個季度討論了這一點，我們在價格包架構和街邊便利店中擁有的機會，並確保我們在前進的過程中解決這些領域的問題，而Zapp 的速度會慢一些超出我們的預期。薯片尤其是我們持續強調的一個領域，然後是一年前新產品的椒鹽捲餅，我們現在推出了兩種新產品，我們的辣卡真和紅糖，目前已上市並正在銷售中。因此，我們預計這種趨勢將會正常化。薯片是我們需要繼續努力的領域。

Okay. Thanks so much.

好的。非常感謝。

Thank you.

謝謝。

Our next question comes from the line of Rob Dickerson from Jefferies. Please go ahead.

我們的下一個問題來自 Jefferies 的 Rob Dickerson。請繼續。

Great. Thanks so much. Maybe just on the heels of that last question. I'm just curious, you know, as you have started to expand a bit in your expansion geographies, are there any bit -- have there been any incremental learnings with respect to kind of which products, which brands are maybe traveling a bit better.

偉大的。非常感謝。也許就在最後一個問題之後。我只是很好奇，你知道，隨著你開始在擴張地域上進行一些擴張，是否有任何關於哪些產品、哪些品牌可能會發展得更好的增量學習？ 。

I just kind of ask because you know, I know, -- I think previously the ideal was, well, it definitely can push in Zapp's definitely can push in Canyon, but also seems like UTZ is doing kind of very well as you kind of move west. So that's just the first question?

我只是想問一下，因為你知道，我知道，--我認為以前的理想是，嗯，它絕對可以推動 Zapp 絕對可以推動 Canyon，但似乎 UTZ 做得很好，就像你一樣向西移動。那麼這只是第一個問題？

Yes. I think overall, we feel really good about all four of our powerful brands, right? I think they all travel, they all travel reasonably well on at this point. I think the two things we have learned as we go is how repeatable our model seems to be, right? So we had a theory of the case, we had great success expanding into Florida, and we continue to make great strides there, continuing to grow our business there.

是的。我認為總的來說，我們對我們的四個強大品牌都感覺很好，對吧？我認為他們都在旅行，他們在這一點上都進展得相當順利。我認為我們在開發過程中學到的兩件事是我們的模型的可重複性，對吧？因此，我們對此案有了一個理論，我們在擴展到佛羅裡達州方面取得了巨大成功，並且我們繼續在那裡取得長足進步，繼續在那裡發展我們的業務。

But I think we have a formula down of what the right number of items are across which subcategories and the brands, as well as the support model that I think we're showing is significantly incremental to the retailer and our brand.

但我認為我們有一個公式，確定了子類別和品牌的正確數量的商品，以及我認為我們展示的支援模式對零售商和我們的品牌來說是顯著增量的。

And there's a great deal of interest from consumers to opt into our products as well. So again, I think that the power of the portfolio, the catering to different consumers and making sure that our assortment reflects that and then investing some of our advertising and consumer to drive consumer pull as our sales organization and retailers are giving us the space is working for us, is working for the category, and we're being rewarded with incremental support as we go.

消費者也非常有興趣選擇我們的產品。因此，我再次認為，產品組合的力量，迎合不同消費者的需求，並確保我們的品種能夠反映這一點，然後投資一些廣告和消費者來推動消費者的吸引力，因為我們的銷售組織和零售商為我們提供了空間。

Alright. Super. And then I guess just secondly, what's your updated thought on potential category growth for the year one? And then two, clearly, there's acceleration baked into the guide that you expect in the back half and it seemed like it seems like you have fairly high conviction on that acceleration. So I'm kind of assuming that's off of distribution gains. Maybe just kind of comment on why the conviction there so. Thanks.

好吧。極好的。然後我想其次，您對第一年潛在類別成長的最新想法是什麼？然後兩個，顯然，你在後半部分所期望的指南中融入了加速度，而且看起來你對這種加速度有相當高的信念。所以我有點假設這不包括分配收益。也許只是評論為什麼會有如此的信念。謝謝。

Yes. Look. I think we have always maintained from the beginning of the year that we expected the category to call it, call it around 2%. But our growth was going to be volume-led, we weren't going to see any price. And obviously, the category has been a little bit softer than even we had we had thought it would be. I think we would say right now, we would assume it's kind of relatively flat as we go forward.

是的。看。我認為我們從今年年初就一直堅持我們預計該類別會調用它，並調用它在 2% 左右。但我們的成長將以銷量為主導，我們不會看到任何價格。顯然，這個類別比我們想像的要軟一些。我想我們現在會說，我們會假設隨著我們的前進，情況會相對平坦。

And sorry, I lost your second question. I apologize.

抱歉，我丟失了你的第二個問題。我道歉。

The second question is just what gives you conviction on the back half acceleration. Clearly, that does imply a fair amount of share gain.

第二個問題是什麼讓你對後半加速有信心。顯然，這確實意味著相當多的份額收益。

Yes.

是的。

Thank you. Look, I think as we look at our back half plans, there are a couple of things that are going on. First of all, we have secured distribution gains that we are aware of, that we are executing as we speak, and we'll continue to expect that that will support our top line as we go forward on a relative basis to the first half.

謝謝。聽著，我認為當我們審視我們的後半計劃時，有一些事情正在發生。首先，我們已經獲得了我們所知道的分配收益，我們正在執行我們所說的分配收益，並且我們將繼續期望這將在我們相對於上半年的基礎上前進時支持我們的營收。

I think second our marketing steps up as does our innovation.

我認為其次，我們的行銷和創新也得到了加強。

And then the third, although I don't always love this as an answer, we have -- we do have easier comps in the back half of the year versus prior year. So kind of the year we can execute similarly as we are and actually, the percentage growth will be more will be more significant. So we do have high conviction, the wildcards, I think, are well known to everybody, but we feel pretty good that we're executing the way we need to right now.

然後是第三個，雖然我並不總是喜歡這個答案，但我們確實在今年下半年比去年有更容易的比賽。因此，今年我們可以像現在一樣執行，實際上，百分比成長將更加顯著。所以我們確實有很高的信念，我認為通配符是每個人都知道的，但我們感覺很好，我們現在正在按照我們需要的方式執行。

All right. Super. Thank you.

好的。極好的。謝謝。

Thank you.

謝謝。

Our next question comes from the line of Robert Moskow from TD Cowen. Please go ahead.

我們的下一個問題來自 TD Cowen 的 Robert Moskow。請繼續。

Hi. Thanks. I just wanted to ask in the context of your longer-term outlook for sales growth is three to four. Clearly, this is a volume-driven year and but you could see a scenario where pricing is kind of flattish for the next couple of years, three years, given all the backdrops. So does the long-term algo still hold up in a zero pricing environment? Is there enough distribution gains out there in '25 and '26 to keep that three to four going? Thanks.

你好。謝謝。我只是想問一下，您的長期銷售成長前景是三到四。顯然，今年是銷量驅動的一年，但考慮到所有背景，您可能會看到未來幾年、三年的定價會持平。那麼，長期演算法在零定價環境下仍然有效嗎？25 年和 26 年是否有足夠的分配收益來維持這三到四次？謝謝。

Yes. I think the short answer is yes, we have a significant amount of geographic whitespace to go over the next couple of years. Remember, we're still -- we still have about 60% of the total U.S. salty, where salty is over-indexes from a category perspective are the areas that we are moving -- we're moving toward. So I think the short answer is we can -- absolutely have confidence that we can continue to grow our volumes.

是的。我認為簡短的答案是肯定的，在接下來的幾年裡我們有大量的地理空白。請記住，我們仍然 - 我們仍然擁有美國鹹味食品總量的約 60％，從類別角度來看，鹹味食品指數過高，這是我們正在努力的領域 - 我們正在朝著這個方向邁進。所以我認為簡短的答案是我們可以——絕對有信心我們可以繼續增加我們的產量。

If you think back to Investor Day, what we had said was that we would be growing volume share, that it had always been for us a volume-based program. And it's really because we're able to bring our core brands and sort of mix them into the geographies that they are less penetrated in as we go forward. And I think the other thing is given we are still in the early stages of our advertising and consumer investments, I think we also have confidence that as we learn more, those should be supportive to continue to drive meaningful volume growth over the next three years.

如果你回想一下投資者日，我們所說的是我們將增加銷售份額，這對我們來說一直是一個基於銷售的計劃。這實際上是因為我們能夠將我們的核心品牌融入我們前進過程中滲透率較低的地區。我認為另一件事是，我們仍處於廣告和消費者投資的早期階段，我認為我們也有信心，隨著我們了解更多，這些應該有助於在未來三年內繼續推動有意義的銷售成長。

I got it. Okay. Thank you very much.

我得到了它。好的。非常感謝。

Thanks, Rob.

謝謝，羅布。

Our next question comes from the line of Matt McGinley from Needham. Please go ahead.

我們的下一個問題來自尼達姆的馬特·麥金利（Matt McGinley）。請繼續。

Thank you. To deliver the full year EBITDA guide, you need to have a step-up in margin rate in the back half. Do you expect the sales growth could drive more operating leverage and offset that increase in marketing? Or do you expect to have more productivity gains that will ramp up in the back half?

謝謝。要提供全年 EBITDA 指南，您需要在下半年提高保證金率。您是否預期銷售成長可以推動更高的營運槓桿並抵消行銷的成長？或者您預計下半年的生產力會提高嗎？

Yes, I would say both. So the leverage from distribution gains, lead sales growth or volume growth definitely helps. And our productivity program has been pretty strong throughout the first half. You should see that strength and that delivery continue. A supply chain team is doing a great job accelerating program as well as investing where we need to in our network to get ready for 2025 as well.

是的，我會說兩者。因此，分銷收益、銷售成長或銷售成長帶來的槓桿作用肯定會有所幫助。我們的生產力計劃在整個上半年都非常強勁。你應該看到這種力量和交付仍在繼續。供應鏈團隊正在出色地加速規劃，並在我們的網路中進行必要的投資，為 2025 年做好準備。

A key part of your long-term plan is to sustain market share in your core markets. You've been pretty consistently gaining share and as expansion markets, but maybe not so consistent in the core. Are there any issues or changes you need to make in the core markets? Or are you pretty happy with the market performance and how it's playing out in core versus expansion?

您的長期計劃的關鍵部分是維持核心市場的市場份額。隨著市場的擴張，你一直在不斷獲得份額，但在核心方面可能不太一致。您在核心市場上是否有任何問題或需要做出改變？或者您對市場表現及其在核心與擴展方面的表現感到非常滿意嗎？

Well, I think that was a general statement about our core. I think, look, if you look across where we've been and we're very happy with our expansion markets, and part of our core market strategy is to do some similar things, specifically around Boulder Canyon, Zapp's and On The Border. I think we're getting -- we are having good results in doing those things, but we are more -- it is clearly in a geography where sort of more normal category dynamics tend to impact some of our business, specifically around our foundation brands sort of the areas as we're evolving our portfolio, we have a long tail.

嗯，我認為這是關於我們核心的一般性陳述。我想，如果你看看我們已經去過的地方，我們對我們的市場擴張感到非常滿意，我們的核心市場策略的一部分是做一些類似的事情，特別是在Boulder Canyon、Zapp's 和On The Border 周圍。我認為我們在做這些事情方面取得了良好的成果，但我們顯然在這樣的地理環境中，更正常的品類動態往往會影響我們的一些業務，特別是圍繞我們的基礎品牌在我們不斷發展投資組合的領域中，我們有一個長尾。

We have a tale of brands that we have been and that we have been shifting away from, and the core it disproportionately will reflects those trends in the near term. We think longer term, those trends, I think, normalize and become very small, and that's why we have confidence as we go forward. But really there are four things we're doing there. We're going to continue to drive our capabilities. We're going to continue -- we're increasing our marketing investment in innovation, which should benefit the core disproportionately.

我們有一個品牌的故事，我們曾經是，我們一直在遠離，而它的核心將不成比例地反映近期的這些趨勢。我們認為，從長遠來看，這些趨勢會正常化並變得非常小，這就是為什麼我們對前進充滿信心。但實際上我們正在那裡做四件事。我們將繼續提升我們的能力。我們將繼續增加對創新的行銷投資，這應該會為核心帶來更大的好處。

We have -- we're building our DSD route infrastructure, continuing to improve it and strengthen it as our sales teams are there. And then we're driving that distribution we talked about. So I think we have a little bit of work to do in our core, for sure. But we feel very -- I feel very good about our progress there, and we just needed to continue to come through and metrics by holding our share.

我們正在建立我們的 DSD 路線基礎設施，並在我們的銷售團隊的幫助下繼續改進和加強它。然後我們正在推動我們談到的發行版。所以我認為我們的核心確實還有一些工作要做。但我們對我們在那裡取得的進展感覺非常好，我們只需要透過保持我們的份額來繼續實現目標和指標。

Okay. Got. Thank you.

好的。得到。謝謝。

Thank you.

謝謝。

Our next question comes from the line of Rupesh Parikh from Oppenheimer. Please go ahead.

我們的下一個問題來自奧本海默的魯佩什·帕里克 (Rupesh Parikh)。請繼續。

Good morning and thanks for taking my questions. So I had two questions just on the promotional backdrop. So I was curious what your team's assuming for the back half of the year on the promotion front versus what we saw in Q2. And then as you look at some of your value initiatives so far, how are consumers responding to some of the promotional efforts?

早安，感謝您提出我的問題。所以我有兩個關於促銷背景的問題。所以我很好奇你們的團隊在今年下半年的促銷方面的假設與我們在第二季度看到的情況有何不同。然後，當您審視迄今為止的一些價值舉措時，消費者對某些促銷活動有何反應？

Yes. So what I think we look at our price -- we'll maintain our price gaps and remain disciplined as we go forward. I think we feel pretty good about where our price gaps are, and if the market shifts, then we'll be flexible and targeted and to address them.

是的。因此，我認為我們會關注我們的價格——我們將保持價格差距，並在前進過程中保持紀律。我認為我們對價格差距的定位非常滿意，如果市場發生變化，我們將靈活、有針對性地解決這些問題。

Yes, I think from a from a -- an overall perspective, one of the things that makes us feel even better is because expansion geographies and our untracked channels continue to perform, obviously, that actually takes a little bit of pressure off of just competing on a promotional calendar. We have a lot of growth drivers for us as we go forward. And so I think we feel pretty good. Obviously, we showed you our difference in our promotional spending versus the category year over year. We do expect that the category will be more promotional, and we're prepared to compete there if it changes more than we planned, we'll be flexible.

是的，我認為從整體角度來看，讓我們感覺更好的事情之一是因為擴張地域和我們未跟踪的渠道繼續發揮作用，顯然，這實際上減輕了一點競爭的壓力在促銷日曆上。在我們前進的過程中，我們有很多成長動力。所以我認為我們感覺很好。顯然，我們向您展示了我們的促銷支出與去年同期相比的差異。我們確實預計該類別將更加促銷，並且我們準備好在那裡競爭，如果它的變化比我們計劃的更多，我們將保持靈活性。

Great.

偉大的。

And then maybe just one follow-up question just on the cost side. What do you guys see in the cost backdrop and on the inflation front at this point?

然後也許只是一個關於成本方面的後續問題。你們目前在成本背景和通膨方面有何看法？

Yes.

是的。

So we are still expecting the inflation -- overall inflation bucket that we track to be flat. Commodities are slightly deflationary, but we have transportation and labor inflation that's baked into that bucket.

因此，我們仍然預期通膨——我們追蹤的整體通膨區間將持平。大宗商品略有通貨緊縮，但交通和勞動力通膨也被納入其中。

Great. Thank you.

偉大的。謝謝。

Thanks, Rupesh.

謝謝，魯佩什。

Thank you.

謝謝。

Our next question comes from the line of Mitchell Pinheiro from Sturdivant. Please go ahead.

我們的下一個問題來自 Sturdivant 的 Mitchell Pinheiro。請繼續。

Hey, good morning. I'm curious about your foundation brands and how important sort of holding them somewhat steady. Is that too sort of achieving your gross margin expansion, is that a risk at all if you continue to see above-average leakage in the foundation brands?

嘿，早安。我對你們的基礎品牌很好奇，以及保持它們穩定的重要性。這是否也有助於實現毛利率擴張？

Yes, I appreciate the question. Look, I think for us, our foundation brands, in general, play a very specific role of being able to build out some route infrastructure and making sure that certainly in some geographies where they are important to the shopper and consumer that they are available. We will continue to de-emphasize them as sort of contemplated in our original assumptions and thesis as we go forward is that as those businesses deemphasize our higher margin and higher consumer value products actually offset those declines.

是的，我很欣賞這個問題。看，我認為對我們來說，我們的基礎品牌總體上發揮著非常具體的作用，能夠建立一些路線基礎設施，並確保在某些對購物者和消費者很重要的地區，它們是可用的。隨著我們前進，我們將繼續不再強調它們，就像我們最初的假設和論文中所考慮的那樣，隨著這些企業不再強調我們更高的利潤率和更高的消費者價值產品，實際上抵消了這些下降。

But we love our foundation brands will maintain them and make sure that they're available. But ultimately, I don't suspect that it will be a meaningful impact to the to the overall P&L, given the growth opportunities we have for our Power Four and our Targeted Power brands.

但我們喜歡我們的基礎品牌，他們會維護它們並確保它們可用。但最終，考慮到我們的「四大」品牌和「目標力量」品牌所擁有的成長機會，我認為這不會對整體損益產生有意義的影響。

Okay, thanks for that. And then just one last question is can you speak to the effectiveness of your promotions right now? Are they -- is there one type doing better than another? And or are they tracking with that with normal effectiveness and efficiencies from from historical levels?

好的，謝謝。最後一個問題是，您能談談現在促銷活動的成效嗎？他們是否——是否有一種類型比另一種類型做得更好？或者他們是否以歷史水平的正常有效性和效率進行追蹤？

Look, I think we are, at one of the things that we've been building out our revenue management capabilities there, kind of a few things that we've been doing. One is making sure that we understand what our optimal price gaps are so that we can compete responsibly in the category and be able to drive obviously the affordability consumers' desire with theunit growth and the volume that I think everybody would like and a healthy and growing category.

聽著，我認為我們正在做的事情之一是我們一直在那裡建立我們的收入管理能力，這是我們一直在做的一些事情。一是確保我們了解我們的最佳價格差距是多少，以便我們能夠在該類別中負責任地競爭，並能夠通過我認為每個人都希望的單位增長和銷量以及健康和增長來明顯推動消費者的可負擔性需求類別。

We know that through the course of the first half of the year and obviously all of last year that promotional lifts have been lower and we've been experimenting with different promotional tactics and we continue to do that. I wouldn't necessarily say there's one that's working better than others, but it is -- but clearly you can see the consumer making choices, shopping ladder and shopping across channels, which is obviously having some effect on promotionally. I think for us, while we will compete where we need to in a targeted way on price. The distribution gains and the marketing support that we are able to generate is also having very positive effects to our business. And so we feel really good that the entire marketing mix is working the way we would expect it to. And there will always be some trade-offs, which we'll be flexible about.

我們知道，在今年上半年以及去年全年，促銷力度一直較低，我們一直在嘗試不同的促銷策略，我們將繼續這樣做。我不一定說有一個比其他的效果更好，但確實如此——但很明顯，你可以看到消費者做出選擇、購物階梯和跨渠道購物，這顯然對促銷產生了一些影響。我認為對我們來說，雖然我們會在需要的地方以有針對性的價格進行競爭。我們能夠獲得的分銷收益和行銷支援也對我們的業務產生了非常積極的影響。因此，我們感覺非常好，整個行銷組合正在按照我們預期的方式運作。總是會有一些權衡，我們會靈活處理。

Thank you.

謝謝。

Very helpful. That's all for me.

非常有幫助。這就是我的全部。

Thanks, Mitch.

謝謝，米奇。

(Operator Instructions) Our next question comes from the line of Jim Salera from Stephens. Please go ahead.

（操作員說明）我們的下一個問題來自 Stephens 的 Jim Salera。請繼續。

Hi, guys. Good morning. Thanks for taking our questions. Howard, I wanted to drill down. If you look at the household penetration, the buyers and the repeat trends, obviously all going in the right direction, I would imagine driven in the expansion territories. Can you just talk through you maybe what's bringing the incremental households to the UTZ brand? And then it seems like you obviously you're retaining them with a repeat rate. What does it take to retain them if there may be new to the brand moving forward such that we can have a more stable and ideally higher repeat rate from these new customers.

嗨，大家好。早安.感謝您回答我們的問題。霍華德，我想深入了解一下。如果你看看家庭滲透率、買家和重複趨勢，顯然一切都在朝著正確的方向發展，我想這會推動擴張領域的發展。您能談談是什麼讓越來越多的家庭選擇了 UTZ 品牌嗎？然後看起來你顯然是在以重複率保留它們。如果品牌可能有新的發展，我們需要怎樣才能留住他們，這樣我們才能從這些新客戶那裡獲得更穩定、理想情況下更高的重複率。

Appreciate the question. Look, I think we're very happy with the underlying consumer metrics, right? It's one thing to be able to to enter into a new geography or enter into a new class of trade on which, again, I think for us, the power of our portfolio is that we're able to bring varied brands to varied geographies, some of them in the core and elsewhere.

感謝這個問題。看，我認為我們對基本的消費者指標非常滿意，對吧？能夠進入一個新的地區或進入一個新的貿易類別是一回事，我認為對我們來說，我們的產品組合的力量在於我們能夠將不同的品牌帶到不同的地區，其中一些在核心和其他地方。

But then the reality is, is that once you get into the store, the consumer has to want to buy the product and repeat it to your point, which we're seeing great progress across all of those things. I think there's a couple of reasons why. Number one, we do have a great product. Like we are -- we have a meaningfully different from product that eats well. I think it meets the consumer expectations whether you want a plain chip or a wavy chip or tortilla across all of our subcat.

但現實是，一旦你進入商店，消費者必須想要購買該產品並重複你的觀點，我們看到所有這些方面都取得了巨大的進步。我認為有幾個原因。第一，我們確實有很棒的產品。就像我們一樣——我們有一種與食用健康的產品截然不同的產品。我認為，無論您想要我們所有子貓上的普通晶片、波浪晶片還是玉米餅，它都滿足消費者的期望。

So the first thing is I think we're very proud of the products that we put out. I think the second thing is that we are now actually being able to drive awareness of those items, both in terms of point-of-sale displays and being able to drive our distribution, but also in market using the marketing tactics to get consumer awareness up.

首先，我認為我們對我們推出的產品感到非常自豪。我認為第二件事是，我們現在實際上能夠提高這些商品的認知度，無論是在銷售點展示還是能夠推動我們的分銷方面，而且在市場上使用營銷策略來提高消費者認知度向上。

And then third, we have great retailer and IO support. So the retailers are giving us the space out on the perimeter, which allows the consumer to be there other than our IOs are keeping stocks that stores shelves and giving consumers the opportunity to opt in. So I think what you see right now is an entire system is working reasonably well for us. Obviously, we have plenty to do and we are clear far from perfect, but across our across our business right now, we feel pretty good about about how we're executing.

第三，我們擁有強大的零售商和 IO 支援。因此，零售商在周邊給了我們空間，讓消費者可以在那裡，而我們的 IO 則保留商店貨架上的庫存，並為消費者提供選擇的機會。所以我認為你現在看到的是整個系統對我們來說運作得相當好。顯然，我們還有很多工作要做，而且我們顯然還遠遠沒有達到完美，但目前在我們的整個業務中，我們對我們的執行方式感到非常滿意。

That's great. And then if I can drill down on Boulder, if my notes serve me correctly. In the Investor Day, you guys said it would be targeting $100 million retail sales in three years. Again, we are, you know, six months and some change later and it's approaching $100 million in retail sales now. So I would anticipate that you'll probably be well ahead of that three year time horizon.

那太棒了。然後，如果我可以深入研究博爾德，如果我的筆記對我有用。在投資者日，你們說它將在三年內實現零售額 1 億美元的目標。再說一次，你知道，六個月後發生了一些變化，現在零售額已接近 1 億美元。因此，我預計您可能會遠遠領先三年的時間範圍。

What does it take get Boulder really increased shelf availability at traditional retail. I mean, I see it in club, in a natural and in my area, but I feel like it has brought enough appeal to really be a mainstay in a traditional retail as well. So what does it take to really expand your on-shelf presence in the Krogers and Albertsons in the world?

博爾德需要做什麼才能真正提高傳統零售業的貨架供應量。我的意思是，我在俱樂部、自然環境和我所在的地區看到了它，但我覺得它帶來了足夠的吸引力，真正成為傳統零售業的中流砥柱。那麼，如何才能真正擴大您在克羅格和艾伯森全球的貨架上的影響力呢？

Yes.

是的。

I -- we are very pleased, obviously, with the performance of our Boulder Canyon business over the last really, frankly, 18 months, we started probably when I first got here, we started talking more about Boulder Canyon as a power brand. And it continues to grow quickly, both in terms of availability as well as velocity.

顯然，我們對 Boulder Canyon 業務在過去 18 個月的表現感到非常滿意，可能是在我第一次來到這裡時，我們開始更多地談論 Boulder Canyon 作為一個強大的品牌。無論是在可用性還是速度方面，它都在持續快速成長。

So we're getting -- to your point. We're getting consumers to opt in and retailers are putting it on the shelves, but then consumers are coming and buying it and then repeating. So it's positioning is great, the product is great. I think from our point of view, there's really nothing stopping us from continuing to drive the availability where retailers and consumers want it.

所以我們正在了解您的觀點。我們讓消費者選擇加入，零售商將其放在貨架上，但隨後消費者就會過來購買，然後重複購買。所以它的定位很棒，產品也很棒。我認為從我們的角度來看，確實沒有什麼可以阻止我們繼續推動零售商和消費者想要的可用性。

We have the firepower and manufacturing capabilities to continue to build that business. And you're right, we're well ahead of the -- what we thought at the time was a pretty bold statement of $100 million within three years, and we will be well ahead of that probably by 2026. We'll certainly be exceeding that expectation that we set out. So we'll continue to drive availability. We will innovate. You've seen Boulder Canyon Poppers showing up, and we think there's a lot left to do with that brand.

我們擁有繼續發展該業務的火力和製造能力。你是對的，我們遠遠領先於我們當時認為的三年內 1 億美元的相當大膽的聲明，而且到 2026 年我們可能會遠遠領先。我們肯定會超越我們設定的期望。因此，我們將繼續提高可用性。我們將創新。您已經看到 Boulder Canyon Poppers 的出現，我們認為該品牌還有很多發展空間。

Okay, great. And maybe just one last question, just to tie off that train of thought. Do you have any capacity constraints for Boulder? If you get big orders from retailers, are you able to meet that right away, or is there like a ramp-up period we would anticipate?

好的，太好了。也許只是最後一個問題，只是為了理清思緒。博爾德有容量限制嗎？如果您從零售商處獲得大訂單，您是否能夠立即滿足該訂單，或者是否有我們預期的過渡期？

No. We feel really good about our capacity right now. Obviously, given all the supply chain optimization work that we are doing and the capital that we are investing, as well as the increase in our capabilities around integrated business planning, we have much better visibility for both the demand and supply of that item. And so, we feel good about where we are. We feel really good about the ability to support that runway as we go forward.

不。我們現在對我們的能力感覺非常好。顯然，考慮到我們正在進行的所有供應鏈優化工作和我們正在投資的資本，以及我們圍繞綜合業務規劃的能力的增強，我們對該專案的需求和供應都有更好的可見性。因此，我們對自己所處的位置感覺良好。我們對在前進過程中支持這條跑道的能力感到非常滿意。

Okay, great. Thanks for the color, guys. I'll hop back into queue.

好的，太好了。謝謝你們的顏色。我會跳回隊列。

Thank you.

謝謝。

All right. And our next question comes from the line of John Baumgartner from Mizuho. Please go ahead.

好的。我們的下一個問題來自瑞穗銀行的約翰·鮑姆加特納。請繼續。

Hi, good morning. Thanks for the question.

嗨，早安。謝謝你的提問。

Hi, John.

嗨，約翰。

Maybe first off, Howard, how are you thinking about category mix in a weakening consumer environment? Is it fair to expect any sort of shifting, for example, some popcorn, potato chips? Or are there any broader shifts that could occur within salty snacks that could prove net favorable for you?

首先，霍華德，您如何考慮在消費環境疲軟的情況下進行品類組合？期待任何形式的轉變（例如一些爆米花、薯片）是否公平？或者鹹味零食中是否可能發生任何對您有利的更廣泛的轉變？

It's an interesting question. I think we would expect, because there are consumers who -- if you look at the consumer decision tree, consumers do tend to opt into subcategories first and then they kind of move up and down the brand and price ladder within that category more so than they do, say, jump from potato chips to pretzels. So while there is obviously people will shop across the subcats, people do tend to -- consumers do tend to opt into one subcategory and kind of live there.

這是一個有趣的問題。我認為我們會預料到，因為有些消費者——如果你看一下消費者決策樹，消費者確實傾向於首先選擇子類別，然後他們在該類別內的品牌和價格階梯上上下移動的程度比例如說，他們確實從薯片跳到了椒鹽捲餅。因此，雖然顯然人們會在子類別中購物，但人們確實傾向於——消費者確實傾向於選擇一個子類別並在那裡生活。

And then there are -- I think where there are items that they are buying for the entire family to eat, you might see a little bit more pressure just in terms of absolute. Maybe you don't opt into two bags, you buy one. But I think that, that is pure speculation on my part. I think what you are seeing in our results is the benefit of the portfolio strategy that we have and a lot of the efforts we've undertaken over the last, call it, 18 months, 2.5 years to optimize our portfolio mix and be able to shift it to more profitable businesses as we've deemphasized some others.

然後是——我認為，如果他們購買一些供全家人吃的食物，你可能會看到絕對壓力更大一些。也許您不會選擇兩個包，而是買一個。但我認為，這純粹是我的猜測。我認為您在我們的結果中看到的是我們所擁有的投資組合策略的好處，以及我們在過去 18 個月、2.5 年裡所做的大量努力，以優化我們的投資組合，並能夠將其轉移到利潤較高的業務上，因為我們已經淡化了其他一些業務。

Okay. And then my follow-up, can you discuss some of the back half merchandising plans? I think last year, you began to ramp activity with some products for tailgating season. I think Halloween has been a focal point for you as well. So relative to last year and the improvements you made in manufacturing and supply chain, how does that set you up for the seasons this year in terms of display and feature?

好的。然後我的後續，可以討論一下後半段的銷售計畫嗎？我想去年，你們開始在車尾聚會季節增加一些產品的活動。我認為萬聖節也是您的焦點。那麼，相對於去年以及你們在製造和供應鏈方面所做的改進，這對今年的展示和功能方面有何幫助？

Yes. So look, I think a couple things. One thing we certainly see is that our quality merchandising has -- continues to get stronger. So, we have been fortunate to be driving more feature and display activity. Our perimeter displays have been higher through, really, the course of the last, call it, 18 months. And I think that we -- our expectation is that we are justifying our space on the perimeter and our IOs do a great job of continuing to compete for that space, and we expect that to continue.

是的。所以看，我想到了幾件事。我們確實看到的一件事是，我們的優質行銷已經——繼續變得更強。因此，我們很幸運能夠推動更多的功能和展示活動。事實上，在過去 18 個月的過程中，我們的周邊顯示一直更高。我認為我們——我們的期望是，我們正在證明我們在外圍的空間是合理的，我們的IO在繼續爭奪該空間方面做得很好，我們希望這種情況能夠繼續下去。

One thing -- a couple of things that we are certainly optimistic about is kind of where we are on distribution and merchandising in the back half of the year. Untracked channels, I think across we feel good about where we are. We're bringing back -- while we have -- while we're repeating our normal pretzel -- our normal pretzel Halloween rotation, we'll actually have a Zapp's Halloween rotation as well, which will be incremental to the prior year and feel very good about what we're doing on, on the holiday as we go forward.

有一件事——我們當然樂觀的幾件事是我們在今年下半年的分銷和銷售方面的情況。在未追蹤的頻道中，我認為我們對自己所處的位置感覺良好。我們正在恢復——當我們重複我們正常的椒鹽捲餅時——我們正常的椒鹽捲餅萬聖節輪換，我們實際上也會有 Zapp 的萬聖節輪換，這將比前一年有所增加，感覺對於我們在假期中所做的事情非常滿意，因為我們將繼續前進。

So I think -- we think all of those things will support our business. The already achieved distribution gains that we have are also going to obviously introduce more merchandising opportunities for us in some of our expansion geographies and the consumer support we have as well will be in support as well. So, we feel pretty good about where we are and we're here to compete and do it responsibly and remain flexible.

所以我認為——我們認為所有這些事情都會支持我們的業務。我們已經取得的分銷收益顯然也將為我們在一些擴張地區帶來更多的銷售機會，而且我們擁有的消費者支援也將提供支援。因此，我們對自己的處境感到非常滿意，我們來這裡是為了競爭，負責任地行事並保持靈活性。

Thanks, Howard.

謝謝，霍華德。

Thank you.

謝謝。

All right. Thank you, everyone. That does conclude today's second quarter 2024 earnings call. Have a pleasnt day.

好的。謝謝大家。今天的 2024 年第二季財報電話會議到此結束。祝你有愉快的一天。