J.M. Smucker Co. Earnings Call Insights: Supply & Demand Details, Pillsbury Business
Supply & Demand Details
Andrew Lazar – Barclays Capital: You mentioned in the press release that for the year, prices were down more than the benefit from lower input cost. I’m assuming this is primarily because of the mismatch between price and cost in peanut butter, and that price and cost were more aligned, or even maybe a net positive, specifically for coffee in the year. Is that a fair statement?
Mark R. Belgya – SVP and CFO: That is exactly correct.
Andrew Lazar – Barclays Capital: You talked about over last couple of quarters some of the pricing actions that you were taking for various different reasons in some of the businesses. It certainly seems like the volume response anyway that you’re getting would be one that bears out the reason for having done some of that. So as you go into ’14, what’s the thinking around some of those activities around either promotional price points and things where you made some tactical decisions? Do you keep going with those? Do you expand maybe the scope of some of that? Given you’ve got more reasonable input cost flexibility, just because you’re seeing certainly the positive impact on volume?
Vincent C. Byrd – President and COO: I think, overall as a category or categorically we would say yes, we’ll continue to emphasize managing our price caps. It obviously takes into account our position on the commodity in question. But yes, we will continue that activity.
Richard K. Smucker – CEO: That being said, as you know, we don’t just sell on price, and so we are very price-sensitive to get promotions that are unreasonable.
Vincent C. Byrd – President and COO: I think it’s more – let me just expand. I think it’s more about applying the learnings that we have on our pricing gaps and our elasticities that we were doing a better job of managing.