Vital Farms, Inc.

I think in the prepared remarks you alluded to kind of pretty steady gains, kind of low 30% gains in household penetration over the last two, three years. And I guess I'm trying to think about gains in household penetration versus purchase frequency amongst your core consumers and what you think, where you think purchase frequency is relative to their overall consumption and purchase frequency of eggs. And do you think there's still a lot of headroom to get your consumers once they've purchased the brand to make that their egg that they only buy? And if that hasn't necessarily been happening, what you're doing to change that behavior or work on that behavior?

Terrific question, Adam. So what's interesting to me, my read on household penetration and buy rate is that we continue to add households with pretty similar buy rates to historic households. So you might have expected, if we had plumbed the depths of our true core consumer, that the next incremental consumer might have a lower buy rate or somehow be a less profitable consumer. Not seeing evidence of that drop off yet, which I think is really encouraging. I definitely see opportunities to increase buy rate. And over time, we'll start to migrate the conversation toward one about households and buy rate across a portfolio of products. But yes, I think like in many categories, consumers of eggs have a range of behaviors. Many of them by multiple brands or skews over the course of the year based on a variety of factors, including what's available on the shelf, what's on sale, and the occasion. One example would be we've got some consumers that love baking special holiday treats with our eggs, but for them it would be too much of an indulgence to have them as their everyday egg. And we've got some consumers that won't buy anything but. So we're certainly continually looking at ways to convince our loyal consumers to be even more so.

And if I could just maybe add a quick follow-up on there, given the rise in conventional egg prices that you've seen over the last four or five months, are you seeing any changes in purchase frequency or velocity or consumer behavior that would say that it's making it easier for consumers to trade up into vital versus kind of conventional or normal cage-free eggs? Or how is that price gap kind of impacting consumption in your mind?