PepsiCo, Inc.

Good morning and welcome to PepsiCo's 2026 Second Quarter Earnings Question and Answer Session. Your lives have been placed on this and only until it's your turn to ask a question. Today's call is being recorded and will be archived at www.pepsico.com. It is now my pleasure to introduce Mr. Ravi Pamnani, Senior Vice President of Investor Relations. Mr. Pamnani, you may begin.

Thank you, Kevin, and good morning, everyone. I hope everyone has had a chance this morning to review our press release and prepared remarks, both of which are available on our website. Before we begin, please take note of our cautionary statement. We may make forward-looking statements on today's call, including about our business plans, guidance, and outlook. Forward-looking statements inherently involve risks and uncertainties and only reflect our view as of today, July 9, 2026, and we are under no obligation to update. When discussing our results, we refer to non-GAAP measures which exclude certain items from reported results. Please refer to our second quarter 2026 earnings release and second quarter 2026 Form 10Q available on pepsico.com for definitions and reconciliations of non-GAAP measures and additional information regarding our results, including a discussion of factors that could cause actual results to materially differ from forward-looking statements. Joining me today are PepsiCo's Chairman and CEO, Ramon Laguarta, and PepsiCo's CFO, Steve Schmidt. We ask that you please limit yourself to one question. And with that, I will turn it over to the operator for the first question.

Thank you. In order to ask a question or make a comment, please press star followed by 1-1 on your touchtone phone at any time. We will pause for a moment while we compile our Q&A roster. Our first question comes from Bonnie Herzog with Coleman Tax. Your line is open.

Thank you. Good morning, everyone. Added question on PF&A. You know, your volume was flat in the quarter despite what seems to be stepped-up affordability initiatives and innovation. So hoping you could spend some time helping us understand the changes you've made, you know, maybe what's working, what's not working, and then whether you need to lean in further, you know, maybe on affordability or maybe innovation to drive better volume growth. Thank you.

Good morning, Bonnie, and just let me step back for a minute and give a full company perspective. There's a lot of things we feel good about the business, and there's a few things that we're going to be very focused in the second half to accelerate the business. So if you step back, the company, the first half reported almost 7% revenue growth, and We've grown global volumes, 3% in foods and 2% in beverages. That's the fastest growth in volumes since 2022, including that those volume growth is the volume growth in the U.S. foods business, which it was very strategic for us to get the category back to volume growth and to get our business to gain share Thank you. Thank you. The Permissible part of the portfolio and the portion control part of the portfolio. That part is going very well. Now, on the affordability part, we feel good about the investment. I think in the second half of the year, we're going to have to optimize the return on investment on some of those pricing investments. It depends by channel, by customer, and teams are learning. But I want you to step back and take the bigger picture that a category that was negative in volume now is positive in volume. We were losing share in volume. Now we're gaining share in volume. And that is all very, very positive. And it was the first strategic intent that we had early in the year when we decided to lower the prices of the business. Steve, anything else from your side?

I think that pretty much covers it.

Thank you. One moment for our next question. Our next question comes from Philippa Filoni with Citi. Your line is open.

Hi. Good morning, everyone. So, Ramon, you mentioned in the prepared remarks that in the U.S., consumer behavior clearly was impacted by rising inflationary pressures in the quarter. I was wondering if you can give us an update of what you've seen more recently. Have you seen, like, an improvement in consumer behaviors as gas prices and some other inflationary metrics have come down? And then as you think about the back-off, before you talk about a potential to get to the higher end of the organic sales range, can you give us an update on how you think about the back-off at this point? Thank you.

Yeah, so I think obviously the Iran war and the impact on gas prices has been meaningful not only in the U.S., but across the world. Our international business, as you saw, continues very strong, and we were able to grow 7% accelerating. In the U.S., we're seeing the consumer changing behaviors, basically an acceleration of some of the behaviors we saw in the past. Probably some channels, more the impulse channels, have been impacted, where there is more of a correlation with the price of gas. Certain convenience stores and some other independent stores We're seeing a slowdown of the conversion of traffic into purchases, so we're seeing that. Now, will it change in the coming months? It all depends on the price of gas, so clearly that's something that is beyond our control. We continue to invest in affordability. In those particular channels, we're working with our customer partners in solutions to convert more of the traffic in the store, bundles, linking to meals, solutions to that particular channel. But no, that is the only element that we're seeing in the last few months. Now, we continue to see, as we look at the second half of the year, a very strong international business. It's continuing to perform well into the summer. We see an acceleration of our U.S. business, both in the fruits and the beverage business. And we continue to have a line of sight to the low end of our long-term 4 to 6 in the second half of the year. We were fighting for that. We see a lot of green shoes in our portfolio transformation. We feel good about our permissible. We feel good about some of the innovation that we launched. We're going to scale them in the second half. And we see our affordability increase. to return better for us in the second half as we optimize the tactics for different channels, different consumers.

Ramon and Steve, just maybe a little bit on guidance since we talked a little bit about that. So if we think about guidance overall, you saw that we reaffirmed our guidance for the year. If I take a step back and look at the performance of the whole company and to reiterate some of what Ramon said a minute ago, The overall net revenue of the company grew 7% in the first half of the year, and Ramon just talked about the volume growth that we're seeing globally that makes us feel really good about the health of the brands. Reported EPS grew 6% in the first half. Constant currency EPS grew 3%. We continue to see strong international performance and a softer North America business than we expected in Q2. And so how does that play out for the rest of the year? As we look at the second half, we continue to expect the international business to remain strong. We expect the North America business to gradually improve, but at a more moderate pace than we thought coming into Q2, as Q2 was less than what we expected. We do expect some more pressure on the business from a commodity standpoint, but we also expect refund claims for tariffs paid last year to help offset some of the commodity pressures that we have and allow us to continue to play offense. and the refund claims on the tariffs paid last year will be about one full point of EPS growth for the year. And the other piece is we expect to keep pushing productivity on the business. So we've taken costs out. We'll continue to do that. We have more work to do here. I think what's important for you to know is we're not making decisions that hurt the top line in our assessment. We're going to continue to make investments in growth. The North America Advertising and marketing expenses projected to increase in the second half versus prior year as an example, so we're going to continue to play offense. And so when we add it all up, we're in a position to reaffirm our four-year guidance, and as Ramon said, it may be towards the low end of the EPS range that we've given.

Thank you. One moment for our next question. Our next question comes from Darrell Schilling with Morgan Stanley. Your line is open.

Hey, good morning. So, obviously strong international results in the quarter, but I wanted to focus on North America a bit. We talked about the sequential improvement in volume in PFNA in Q2, but I don't think it was to the level you expected, and maybe you can also comment on PBNA, where it looked like the volumes were also weaker than expected. I just was hoping for a little more of a short-term report card. Do you think that's Less payback on some of the initiatives you put in place. Is it more of the general consumer environment? But really what I wanted to focus on is more longer term, just your perspective on the level of spending behind that North American business as we look out longer term. Do you think to sort of revitalize organic sales growth in this environment, you might need some level of greater spending, a bit of an earnings reset as you look out? And just how do you think about Investment levels behind the business, looking out, given both the short-term performance you're seeing and the consumer environment. Thanks.

That's a good question, Darren. The way we think about it is we still see the international business obviously continue to be very strong, and this is a business now is going to cross $40 billion in this year. International Beverage volumes is two-thirds of the total company volumes, and international foods volumes is over 50%. So, the international business is becoming a very scaled part of our business and profit accretive. So, we're creating a diversification in our business that long-term will give us a lot of rewards. Now, when you focus on the U.S., we continue to think that the U.S. The three pillars that we said were going to help us transform and accelerate our growth in the U.S. One was affordability investments, make sure that our brands are in consumers' lives, in the portions and prices that consumers can afford today. That's one vector. Continue to transform the portfolio at a faster pace following the new dietary habits and food habits and food and beverage habits of consumers. and the third one was Accelerate Away From Home as incremental locations for us to capture new locations for our brands. The portfolio transformation is working very well. We feel good about the no sugar part of our beverage business. We feel good about the functional hydration. We feel good about our energy business. We feel good about some of the innovation that we're going to scale in the second half of the year. So that part is good. We feel good about the permissible portfolio in food. It's already $3 billion. They're growing almost double-digit. The portion control. So all those elements that we explained quite well in our prepared remarks, we feel good. And I think that is really the long-term of the business as you see how consumers will engage with our categories. The away-from-home business continues to be a priority internationally and in the U.S. It slowed down a little bit in Q2. We think that it's going to help us accelerate in the second half, but it's a strategic opportunity where we're innovating, creating new business models, and adding some incremental locations. Now, the affordability part, which is the one you're referring to, we accomplished what we wanted to accomplish, which was Thank you very much. But we think that we will continue to optimize those investments for grocery, high-low, there's one type of investment, for everyday low price, other type of investment, etc. And the system is getting much knowledgeable and much more intelligent in how we get the best return from those investments. Now, what was different this quarter that we were not planning is the performance on the impulse channels, and that is something that We're working on, to tell you the truth, in the last few months to try to get more conversion between people getting into the gas station and converting into purchases of beverages and foods. And that's something that we're working with our partners. That is new. The gas prices have impacted. You know, the gas prices will at one point come down, and then that will become hopefully less of an issue. Thank you very much. which will drive the portfolio acceleration. So that's how we're thinking about this now. Steve, any?

He's covered it all.

Okay.

Thank you. One moment for our next question. Our next question comes from Andrew Texera with J.P. Morgan. Your line is open.

Thank you. Good morning. On the guidance for the second half, you're now adding about, I believe, $0.07 to $0.09 in EPS from the sales. and Reinvestment. And then, and you also mentioned that EPS would be more back-loaded into the Q4. So, I just want to double-click on what Ramon just said about the affordability pillar. Should we expect more price rollback similar to what your biggest customer in the U.S. has recently announced rolling into other retailers? And if so, can you give us some examples of how these reinvestments have converted into better volumes? You just talked about the C&G, the convenience and gas. Anything you can point out to one of your biggest partners that would allow us to think about, like, volumes finally refracting in some of these channels in a way for home? And when you think about the 7th to 9th century investments, it implies more flattish 3Q. I just want to double-check that math. and if that's the case, how you should be thinking. Is that mostly to absorb the commodity pressures that you highlighted or the investments or AM investments or should we think about the affordability being the price of the investments being the bulk of it? Thank you.

Andrew, it's Steve. Thank you for your question. It's good to hear from you. I think on the first part of it, we're going to continue to run our play. We have a strategy that we believe in. Ramon talked a little bit about maybe, you know, we'll likely have to make some tweaks based on what we're learning. from the value standpoint, but we're going to continue to run our play there. On the impact from the tariffs, maybe I'll talk a little bit about Q3 and then Q4 because you mentioned both. Look, if I talk about Q3, and I don't like to give specific guidance on quarters, but I think it's relevant to give you a little bit about the timing since I shared some in my prepared remarks. On the positive side, we continue to expect international to be strong. and we do expect, like you said, about approximately one point of EPS benefit from tariff refund claims likely in the quarter. We expect a gradual improvement in North America and we will be using the tariff, essentially the refunds, to help offset some commodity inflation that we're seeing and allow us to continue to play offense in the business. So that's how we're thinking about that. Also unique to Q3, we expect to have a higher tax rate year over year than what we've seen so far this year, so that should go into the math. And there will be timing of certain costs and investments that we expect to impact Q3 more than Q4. So we'll continue to focus on productivity. We expect more productivity in Q4 and Q3, but that's kind of how we're thinking about the overall math of the back half.

Yeah, Andrea, if you think about the big picture, the clearly... Thank you very much. Normal trade-offs that we make during the year because there's new data points on some elements of our P&L that we have to compensate with others. So that's how we're thinking about the overall pool of money that we have available to continue with our guidance, which is the higher order deliverable amount, the high growth and the EPS numbers that we gave you earlier in the year.

Thank you. One moment for our next question. Our next question comes from Kevin Grundy with BNP Paribas. Your line is open.

Great. Thanks, everyone. I wanted to come back. Sorry for beating a dead horse here, but I wanted to come back to the North America food performance, ask them a little bit different angle, maybe play back some of your comments, Ramon. And specifically, the thrust of the question is around performance currently. versus the strength that you saw in the test markets back in the fall, where there's a lot of enthusiasm, both from a PepsiCo perspective, as well as from a retail perspective, as best we gather. So, can you help us sort of delineate between the macro factors, you talked about tighter consumer budgets and higher levels of inflation, versus more company-specific factors, and how that looks versus, say, you know, nine months ago or so, when you performed a Yeah, I would say the higher order is

We've been able to accelerate volume growth in the category. Salty snacks is one of the few categories that is growing volume in the overall food space in the U.S. So that was a positive. That was the number one intent. The second one is for us to be a driver of that volume. We're getting share of volume in the U.S. in salty snacks, which was also the other object. So that's the number one. Now, is the... Is the volume as much as we expected? No, not in Q2, and it's a couple of elements. I think the consumer is worse than what we had anticipated and driven mainly by gas prices. Second, the execution of the price investment in some customers have had some delays, I would say, because of multiple commercial reasons. That has been solved, so we'll see an acceleration in the second half. The consumer reaction to the investments is pretty much along the lines of what we had initially anticipated, so I wouldn't question the strategic logic of the investments. There are tweaks that we have to make commercially, and there are obviously different circumstances in the U.S. consumer budget tradeoffs that consumers are making, given the and some of the recent inflation, especially on gas prices. So that's where I would leave it here. We remain focused, as Steve said, on continuing the playbook. We continue to invest on our portfolio. We continue to invest on our affordability. We continue to invest on our way from home. And we think that the food business in the U.S. will continue to grow volume and grow net revenue in the coming quarters.

Thank you. One moment for our next question. Our next question comes from Peter Grob with UBS. Your line is open.

Great. Thank you. Good morning, everyone. Maybe, you know, there's been a lot of focus on North America this morning, so maybe just pivoting to the international business. Ramon, maybe you could just give us a walk around the world in terms of what you're seeing around category growth, health of the consumer. Were there any notable differences in NET regions as you move through the quarter here? And then, you know, Steve, maybe that's not to get too specific, but when you speak to international growth remaining resilient in the balance of the year, should we be extrapolating the growth that we saw in the second quarter for the balance of the year? Thanks.

Yeah, so, yeah, thanks for putting the international business in, you know, the center of the conversation. Yes, I mean, this is a business, as you know, we've been investing for the last five, six years, and it's now, as I said earlier, a big part of our volume globally and a big part of our revenue and profit globally. So this is clearly a success story for the company and will continue to be a big driver of growth for us in the coming years, given the per capita and given the share of market opportunities that we have globally. Around the world, I would say going into the quarter, we were a little bit concerned, obviously, with the performance around the Middle East and some of the Asian markets where the gasoline prices were more obvious. The truth is that all those markets have remained very resilient. I think about Vietnam, Thailand, China, some of the markets where the gas prices were elevated. and the same with the Middle East. Our Middle East business continues to perform a very good level. We're seeing that our procurement global capabilities and the agility of the business is proving to be an advantage for us in some of the markets where we're pivoting faster than competition in terms of raw materials availability and agility to compensate for the inflation. Euro remains resilient. Pretty good. Clearly, the World Cup is helping, and the fact that we're sponsoring the World Cup in our food business is helping us to activate the category in a better way. It's creating occasion. We're capturing, and we started Q3 very strong and international. Latin America, a little bit less growth than in the rest of the business, as you saw, but clearly trending very positive, and the World Cup obviously having a very big impact. in that part of the world. So overall, broad, broad, good performance. Part of that is category acceleration. Part of that is better share of market. I would say better in beverages than in foods. In food, we still have opportunities to improve our share of market in some parts of the world. But we continue to see the business trending well throughout the summer and into the winter.

Peter, just to answer your question on what we would expect in the second half, as I look at the business, the signs are pointing towards continued strong growth. Ramon mentioned the volume growth that we've seen, and that's a pretty good indicator of the health of the business in international. Maybe one thing to call out is we do expect some commodity inflation, probably more so in EMEA in the back half of the year, but the teams have been very proactive in mitigating some of the inflation that we expect to come through. and one thing that just to point out to demonstrate not just the top line growth of the international business but in the second quarter operating margin grew by a full point and so we feel good about the top line and we also feel good about the efficiency of how sales are run through the P&L.

Thank you. One moment for our next question. Our next question comes from Lauren Lieberman with Barclays. Your line is open.

Great. Thanks so much. Good morning. Just wanted to talk a little bit about the margin pressure that you saw in PB&A this quarter and how to think about profitability over the balance of the year, just knowing the ongoing focus on improving margins here. But then you've got the realities of higher inflation. And I'm assuming this is also an area where there will be some incremental reinvestment to support your volume ambitions. So just talking a little bit about profitability in PB&A. Thanks.

Sure, I'll take that. If you think about the PB&A business, From a margin perspective, operating margin was down about 90 basis points in the quarter, but that was driven by gross profit rate. The gross profit rate decline, I'd call out three things. About half of the rate decline was driven by the business we have through Alani and the commercial arrangement we have there. That's about half the gross profit decline. The other pieces would be more around the convenience and gas channel that Ramon was talking about. That was particularly soft in the quarter. as well as some of this product mix overall. Those would be the three things that I'd call out. And on the G&A side, the team continues to push the productivity envelope there. Going forward, I think as Ramon talked about, we need to see some improvement in the convenience and gas channel, and hopefully we'll get some tailwinds from gas prices to do that, and we'll continue to push the productivity side.

Thank you. One moment for our next question. Our next question comes from Michael Lavery with PSC. Your line is open.

Thank you. Good morning. I just wanted to come back to PFNA and see if you could add some color on just shelving and distribution updates. I know at the beginning of the year you were expecting Yeah, I would say the, um, you know, the, uh,

The space increase that we had initially planned has been coming throughout the year. There's still more to come. There's been some channels where it's taken a little bit longer to execute that space increases, but we will see those coming in the second half of the year as some of the commercial conversations are coming to fruition. So I would say increasing permanent space The perimeter space, as I said earlier, is going to come more in the second half of the year, particularly in some channels where we had to, you know, come up with some different solutions with the customers. But this is, you know, long-term, this is going to happen. I mean, long-term, I mean second half of the year. And we should have some acceleration in the return on investment in those particular customers.

Thank you. One moment for our next question. Our next question comes from Steve Powers with Deutsche Bank. Your line is open.

Thanks so much. A little bit of a follow-up on that, Ramon. From the outside, and I think that's the prior question we're getting at, it just seems like a lot of the initiatives that we discussed coming into the year, especially along the lines of affordability and package and prognostication, appear largely in the market. And I guess the go-forward question there is, is it more about optimizing and scaling the efforts that you've already put in motion, or are there additional actions that remain ahead that can serve as catalysts? Shelf space is part of that, I guess. But anything more along the lines of...

I would say the... We're in the journey of the three pillars that I mentioned. On the portfolio transformation, most of the innovation that we launch is working quite well in food North America. We're scaling up Naked. We're scaling up Doritos Protein and some of those new platforms that will contribute to the overall permissible portfolio growth and the portion control. In the portion control, we made some investments in opening price points for multi-packs and variety packs that are also working very well. So I think portion control or photo transformation, that part, I think is well in its execution, and we're scaling up those platforms. The away-from-home acceleration, let's say we took a, you know, there were a couple of elements between supply chain and customer execution in the away-from-home Part of the business that slowed down in Q2, now it's accelerating in Q3. That will be a pillar of acceleration. On the affordability investments, as I mentioned, there are channels where the investments are working very well. And there are other channels where we had to make some tweaks and we're executing those tactical mechanics of the value to the consumer. And that is being put in place. and we'll see the benefits in the second half. So that's Model S in the overall picture of the three pillars of the food business in North America acceleration. That's where we are.

Thank you. One moment for our next question. Our next question comes from Peter Galba with Bank of America. Your line is open.

Hey, guys. Good morning. Thanks for taking the question. Steve, just to put a finer point on your prepared remarks, you talked a bit about the gradual rate of improvement in North America for the second half. I just wanted to understand if there's big differences in terms of the two segments and the rate of improvement or if they should look relatively similar as we think about the back half of the year. Thanks very much.

Sure. Thanks for your question. If I had to take North America and dissect it a little bit, I would expect more profit improvement faster from the Thank you. One moment for our next question. Our next question comes from Robert Arnstein with Evercore ISI. Your line is open.

Great, thank you very much. Just kind of stepping back, a little bit more of a maybe strategic question. I mean, the difference in performance, right, between the U.S. business and the international is pretty stunning. And you noted that in a lot of markets around the world, you know, higher gasoline prices were an issue. You know, to what extent do you think that, hey, you know, the U.S. market is just a pretty mature market. And, you know, the rest of the world, there's much greater opportunity. Does it make sense, or maybe you're doing it, we don't really have a view into it, but, you know, are you perhaps over-investing in the U.S., under-investing internationally, given the growth potential of both of those markets? And you noted that, you know, the international business now is margin accretive. So that's kind of the big picture question. And then tied to that, perhaps, is maybe if you could give us an update on the integration testing that you're doing in Texas as a way to lower your cost basis in the U.S. Thank you.

That's great, Robert. Thanks. Yeah, the two are related, but in a way, we've been investing in international for many years and One of the, obviously, things we're very careful about is make sure we don't starve international of the capital or of the investments to continue to grow that business because, as you said, if you think about the company five, ten years from now, that will be the biggest source of growth, and that is where the biggest opportunity is for us to continue to expand our brand. and develop our categories. Now, the U.S. is critical for us in the short term and the long term, and we believe that both keeping our brands in consumers' occasions that we have today, but also providing new offerings both in foods and beverages that cater to the new trends in food consumption in the U.S. and also expanding our away from home is a way for our Thank you very much. to make sure that we can fund the transformation of the U.S. business without starving the international business. To those points, I think automation, we are expanding automation through our business. We're expanding some of the digitalization that would make us much more effective and productive. And one of the pillars that you referred to is how do we combine the scale of our two American businesses to change the – Thank you very much. where we put the inventory from the two categories that gives us a lot of flexibility to service our customers and lowers our costs. Now we're testing incremental ideas like combined delivery, combined fleet. Those are big transformations and it requires systems, it requires assets, but all of this is in motion. and with positive returns so far. Now, there are other transformations that we're doing in terms of integrating our GNA and integrating our systems that would allow us to have a lower cost business that is more affordable and can invest in the growth spaces in the US. So, great question and one of the clear strategic funding resourcing decisions that we have in the company. and what we want to tell you is that we're not starving the international business to fund the U.S. business. The international business has enough capital, enough A&M, enough talent, investment to continue to be a great source of growth for us and a compounder at the levels that you've seen for the last five, six years.

Thank you. One moment for our next question. Our next question comes from Robert Moscow with TD Cowan. Your line is open.

Hi. Thanks, Ramon and Steve. There was an article in the press about six weeks ago about a 10% to 20% price increase that you're taking on Frito-Lay smaller bags. And I suspect that that is really for the convenience channel. And now, you know, today's results indicate that convenience has been weak. In terms of the investments you're making, are you taking steps to kind of cushion the blow for consumers so that affordability doesn't kind of get worse in that channel from here?

That channel is critical for us. The way we're trying to increase the incidence of purchasing that channel is through bundles and some other Inc. for purchase that we're actually partnering with our customers across the country. And we see the benefit when we have good offers and bundles, beverages and foods, or foods and foods, or snacks and foods. We see that being a great accelerator of the performance of the different customers. So we're not trying to – Thank you. One moment for our next question.

Our next question comes from Chris Carey with Wells Fargo Securities. Your line is open.

Hi, good morning. Can you just give us a sense of performance and opportunities of some of your recent acquisitions? perhaps most specifically Siete and Poppy and in general give us a sense of how you're viewing the M&A environment, willingness for additional acquisitions and how in general that factors in your medium term plans.

Thank you. Both Siete and Poppy are doing well. Poppy, we had a The transition between the distributor system that Poppy had and our system had a few, you know, obviously it's a big transition. There's a lot of distributors, and we had a bit of an impact in the first part of the year. Now that is pretty much solved. You know, the business is flowing through our supply chain, and we're seeing the benefits of that in additional consumption points and additional customers. and that will continue. We're seeing poppy growing again at a good pace. Siete as well. Siete was integrated earlier. We had some issues with some of the ingredients in Siete that impacted the performance of the business in the April-May time frame that has been solved as well. So they're both very critical parts of our study to transform our portfolio. We mentioned Thank you very much. Thank you. One moment for our next question.

Our last question comes from Camille Guardiola with Jefferies. Your line is open.

Hey, guys. Good morning. I guess I'm just struggling a little bit to understand what optimizing return on investment means. Does that mean that perhaps some discounts were not working and they're not worth doing anymore, or is it something else to drive more volume? I understand it conceptually but not practically in terms of what's actually changing. and what the goals are for that. Is it a profit? Is it intentions for ROI for profits or intentions for shifting where you're deploying capital to drive volumes faster than whatever they're growing now?

I think it's trying to get more volume from the investments, Camille, and there's high-low customers, there's everyday-low customers and the mechanics, how you can maximize the return on the revenue Trade investments or offers that you make to the consumers can derive more volume or less. So that is what we mean by optimizing the return on the investment. It's a very specific customer-by-customer, holiday-by-holiday, beginning of the month versus end of the month, all those details and how we execute that with our customers. And it's simple on the everyday low-price customers, a bit more complex on the high-low, and that's what we're trying to tweak. So thank you very much all for your conversation and for joining us today and the confidence you're placing with your investment in our stock. Thank you very much and have a great day.