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spk09: conference call, you're pretty comfortable about volume, growing volumes for the year, as well as just top line of that. Is that still the case, number one? And can you maybe give us a sense of what you expect pricing to be? I think there was an announcement that there's a mid-quarter price increase. So can you maybe talk to that a little bit?
spk08: Yeah, sure. Yeah, I appreciate the question. Yeah, we still expect to deliver growth on the year in all of our segments. You know, we have more confidence, I would say, than we even have had in previous quarters. And as we continue to go through quarter through quarter of this pandemic, we gain more confidence. And the reason is we continue to see those new consumers that we talked about all through the last year stay in the category. And we continue to see consumers that increase their use of vitamins, minerals and supplements and their compliance levels through the pandemic. We've seen that stick in Q1. And what gives us confidence is as we got through Q1, we saw continued growth versus 2020 in the first two months of the quarter. When we got into March, we started cycling what we've been calling the panic buying period of 2020, which is about eight weeks of panic buying we saw in the category. As we got into that period, we did see some consumption declines as we expected, most notably in the immunity-based side of the business. But when we compare it to 2019 pre-pandemic levels, It also came in at our expected levels of showing very high baseline business and very strong compliance and a very high level of these new consumers sticking in the category, which we expect we will continue to see for the rest of the year and into the long term. So our confidence through the quarter actually has grown in our ability to deliver growth on the year. When it comes to pricing, you're correct. We announced that we did take some pricing. We put it into market mid-quarter. It will be in our business moving forward, and it is reflected in our guidance that we have given both on quarter two and on a full-year basis. We're not disclosing the pricing and all of the details around that for competitive reasons, but what I can tell you is in quarter one, we did see a combination of some volume growth and some pricing growth, and we expect to continue to see that for some time. Also to note is pricing that we put in the market was put in to reflect and offset increases in commodities and some different expenses we're seeing on our P&L. is a complete offset and was a responsible price increase to both offset prices and make sure we were being responsible to the consumers in the marketplace.
spk09: Okay. In the past, you gave us the annual growth expected for JME Domestic. Would you be prepared to maybe give us that number for Q2?
spk08: For Q2? Sorry, did you say for Q2? Yes, I did. George? Yeah, sorry. Yeah, so we are guiding right now for Q2 growth of our domestic business of at least plus 5%.
spk09: Okay, that's for Jamie Brands all around.
spk08: Okay, got it. Perfect. That's Jamison Brands domestic.
spk09: Got it.
spk01: Yeah, and that includes specialty brands as well, George, just to clarify. That's right.
spk09: Yeah, that's right. Perfect, got it. Matt? Thanks, guys. And just one last one, if I may, on just general inventory of inputs. I mean, obviously, there's been a lot of volatility. There's been a lot of input cost inflation. The expectation is that that's going to continue across the spectrum. Can you talk to any amount that we've secured, how long we've secured it for, and how you expect that to kind of play out in terms of this coming year?
spk01: Well, we typically lock our pricing in the fall for the following at least 12 months. So from our perspective, we are very confident about our margin projections and our guidance for 2021. If outside of that, vitamin ingredient costs do continue to rise or persist, then we'll obviously assess the need to continue to take pricing to maintain our long-term margin aspirations. Okay. That was it for me. Thank you. Thanks, George.
spk05: Thank you. We'll take our next question from Peter Schuyler with BMO Capital Markets.
spk08: As I listened to you talk about the quarter, you had to overcome a bunch of headwinds. There was COVID costs, the costs involved to third-party logistics conversion, this one-time payment to unionized employees, the CEO transition. Can you... If you don't want to talk about each of these items individually, can you tell us, Chris, in aggregate, what all these headwinds amounted to?
spk01: So when you look at what we adjusted from a gross margin perspective, there was about a 250 basis point decline in gross margins. So the cost to transition to our third-party logistics provider in the cost of sales line was about 50 basis points. And then when you look at the rest, another 50 basis points related to What we would include in operating cost as a COVID impact, and that's the impact of efficiency in our manufacturing environment due to shift gaps, PP&E, all of those things that are taking place in the plant within the COVID environment to ensure the health and safety of our employees. From an SG&A perspective, we added back transition costs, and that really relates to shift premiums and donations in the quarter. That wouldn't be something that we would continue outside of COVID. Sorry, the other... Yeah, go ahead.
spk08: Chris, on the So the gross margin was down 250 basis points. So you explained 100 of it. Where's the other 150?
spk01: The other 150 is entirely related to segment mix with strategic partners growing 50% in the quarter. it's really the proportionate. And obviously that will normalize throughout the year as the increases in strategic partner volume in the first half will penalize margins exiting the front half and will be beneficial as that proportionate amount lowers in the back half. So you'll see that trend out throughout the year. Okay.
spk08: And then, Mike, if I could ask you, like in your guidance, you're talking about uh, for a full year, 2021, that domestic Jameson brand, your, your guidance is for it to grow two to 5%, like particularly at the low end of the range. Like it, it seems a bit muted given, you know, the consumer demand for the product. Now I'm just wondering like why that like low end of the range of 2%, I would assume that would practically just be your, the price that you got, you know, um, And so why is there that conservative end? It's just you're up against such a strong comp in 2020. Are there production issues or you're putting your production into the international market? Maybe just talk a little bit about that. Yeah, I think at this point, Peter, it's just us trying to put forward a responsible guidance, knowing that there's still so much uncertainty out there around COVID. Where's COVID going? Like we talked about all through last year, We're going to see some lumpiness this year in terms of comps. And we right now are coming out of, you know, the heart of the panic buying period. And it really is just a guidance, an indication of us being responsible at this point and not trying to get too far ahead of ourselves as we come out of this quarter and we see some good momentum in the business. Okay. And then lastly, could you talk about, like, you have this very high growth rate in SG&A. Like most consumer companies kind of grow their SG&A at about 2%. And like you're growing at much higher rates and it's in your guidance as well. So obviously you're investing in the business. So maybe you could talk a little bit more about where those dollars are going.
spk01: Do you want me to take that mic or do you want to get it?
spk08: No, go ahead.
spk01: Go ahead, Chris. Yeah, so it's really about resources and focusing our resources around our big bets. So we've talked in the last couple of years around strengthening our e-commerce efforts. We've added people on the ground in China. And as our business grows, it's really about ensuring we've got best-in-class talent across all of our functions so it's really allowing kind of some of those back office costs to catch up and then obviously in our guidance we talked about the about three million dollars in incremental marketing that we're putting into uh... invest in our international business throughout the year so those are all both key factors, and then obviously our guidance includes if we end up at the top end of our guidance, that includes incremental variable compensation. So the closer we are to the top end of our guidance, the closer we would be to the top end of that SG&A expectation. If we're at the bottom end from an EBITDA perspective, we'd be at the bottom end of the SG&A just based on that variable nature.
spk08: Okay. Thanks, Chris. That's all I have. Cheers. Thanks, Peter.
spk05: Thank you. Our next question comes from Andre Lino with National Bank.
spk04: Hi. Good evening. Thanks for taking my question. A couple for me. First, I just wanted to ask if you can talk a little bit about China. What kind of trends are you seeing there? Any feedback from your partners? especially given that they are ahead of us in terms of that pandemic control. And lastly, on China, the promotional activity that you just touched on, Chris, have you put that in motion already and any initial feedback from that?
spk01: Yeah, so everything is on track for China, both from a distribution and a cross-border e-commerce perspective. Growth in the quarter continued to be very strong. When we talk about the marketing investments, that's more designated for later in the year as you get to some of the big promotional calendars in China, 6-18, a and 11-11, those types of things. So I think most of that will go later in the year, but to the point earlier on, we did have some marketing investment in the first quarter, and that's why you saw the 11% growth in SG&A.
spk04: Great, thank you. And since we're on international, can you touch a little bit in terms of how do you expect lumpiness for that part of the business in 2021? Sure.
spk01: So we had a big amount of demand ship in the first quarter. The rest of the year will normalize. So I think we're calling for between 5% and 10% in Q2. That will kind of take care of kind of inventories in the year. And then as we get to Q3 and Q4, we expect our shipments to be more closely in line with incremental consumer demand in those quarters.
spk04: Okay, great. Thank you. And just one more for me on the cost side. Well, actually, a two-part question, but the first one, do you expect any sort of cost inflation after that union, that bargaining agreement that you signed? Then the other part of that question is COVID-related costs. How do you see them developing for the rest of the year?
spk01: Yeah, so from a negotiation perspective, we had a very successful negotiation, absolutely great support by the union. We got to a collective bargaining position where both parties were immensely satisfied with the outcome. So we have a happy outcome. collective unit for the next three years and the cost impact is included in our guidance. So absolutely no problems there. Sorry, oh, the COVID costs. So Q1 was really the big lap from a COVID cost perspective because as we started those COVID measures in Q1 2020, that inventory actually didn't start to get sold through. until the second quarter. So when you compare kind of COVID cost to COVID cost, the first quarter was certainly the key driver year on year. As we move forward, it's going to be COVID cost environment to COVID cost environment. So you shouldn't hear me talking about any significant margin erosion. through the remainder of the year. And, you know, if we get lucky and things subside and people get vaccinated, you might even see some favorability in Q4. But I'm crossing my fingers at this point in time.
spk04: Great. That's it for me. Thanks very much.
spk01: Thanks, Andrew.
spk05: Thank you. We'll hear next from Sabat Khan from RBC Capital Markets. Hello, please check your mute function. We're unable to hear you. Musabahat, are you able to hear us? Unfortunately, hearing no response, we'll move on to our next question from Graham Kreimler with Ape Capital. Please go ahead.
spk03: Hi, good afternoon, and thanks for taking my questions. With respect to the growth seen, you know, domestically in Q1 and expected into Q2, I'm wondering if we just dig a layer deeper here. In terms of the customer, has that stayed the same since the peak panic buying period, or have there been any changes in overall demographics or socioeconomic groups that are fueling this continued demand? I'd be interested if there's any trends you could share with us. Thank you very much.
spk08: Yeah, thanks, Graham. From a channel perspective, we've continued to see channel growth across all channels. with e-comm really continuing to show an acceleration of growth across all those pillars. From a consumer perspective, a demographic perspective, again, we saw strong growth across the board over 2020 into 2021. I would say the one shift we have really seen is what we refer to as the fresh face of wellness internally, but that is a younger demographic of consumer getting more involved in the category. and also getting more involved in longer-standing historic or strong heritage brands like Jameson as consumers turn more and more to brands that they know and they trust through this pandemic period. So we have seen a bit of a younger demographic come into the category and most notably come into the Jameson brand over this time.
spk03: Great. Thank you very much for that. And then one other question for me. We've seen some recent M&A activity happen within the VMS space here. I'm wondering... The past discussion has been about quite elevated multiples in the sector. I'm wondering if you could provide any commentary regarding what you're seeing right now, have things level off a bit as the world is trying to approach closer to reopening, or what do the opportunities look like for Jameson right now? I would appreciate any thoughts. Thank you.
spk08: Chris, do you want to take that?
spk01: Yeah, yeah. So from an M&A activity perspective, obviously the opportunities continue to be plentiful. We have a very, very high bar in terms of threshold and need. So we haven't seen anything that really – kind of hits the center of the target in terms of what we're looking for, both from a multiple and a quality asset perspective. As we've mentioned in previous quarters, we're really focused right now on delivering in this really elevated risk environment called the pandemic. And we're very much focused on growing our business in China. So that's where we're going to focus for the next 12 to 24 months. Obviously, if something, you know, very interesting that meets our needs comes along, we'll certainly assess it, but we remain very focused on internal growth at this point.
spk08: Yeah, can I just add to that a little bit? I would say that We're in a very fortunate position in that we have some very clear organic growth opportunities in front of us that we really want to and need to focus on. We will keep M&A in our view, and we will look for opportunities as they arise. And to Chris's point, when the right time with the right deal comes in, we'll make that move. But we have two very unique situations in that we are the market leader that has expanded their leadership during the last 14 months In the market of Canada, our domestic market, that is really showing an elevated level of consumer demand and this new baseline that we keep talking about has now showing that it is real. And we have to stay on the offense here and we have to keep grabbing onto that new base and growing from there. We see a big opportunity there. And the second part to Chris's point is our opportunities in our worldwide growth with all of these new consumers that have now prioritized health and wellness as their number one priority. and our brand showing some strength and growth in these countries led by China, we again need to stay on the offense in that country and in some of the other countries we play and really grab that opportunity right now where those consumers are engaged and where our brand is growing. So we're very confident in those bets. We're very, very focused on them, and we will keep M&A in our view for the right opportunity, but we are focused where those organic growth opportunities are right now.
spk03: Understood. Appreciate the color. Thank you very much.
spk05: Thank you. We'll hear next from Justin Keywood from Stiefel GMP.
spk07: Hi, thanks for taking my call. For the new consumers, you mentioned experiencing Jameson's brand. What's the ability to convert these consumers to additional Jameson products? I assume they're trying out the brand for the first time in the immune boosting category, if I'm correct.
spk08: Yeah, so we saw this trend. We typically in our category see the trend where a new consumer will enter the market. If they stay in the category for call it three to four months, we know that they will stay in the category for the long term. And from there, we have this long term build where they add products or different categories to their usage or to their daily habits. In the last year and continuing into this year, we saw an acceleration of new consumers, the most amount of new consumers ever to enter the category at one given time entered in 2020. We saw the acceleration of those new consumers and of consumers we had pre-pandemic, expanding usage across multi-categories as health and wellness became the number one consumer priority and really the top priority for consumers day in and day out. So we saw strong growth across almost every category we played in as consumers not only came into the market, but then spread their usage out across multiple categories. We continue to see that today. Our entire strategy is built on getting new consumers in, getting them to take their vitamins, minerals, and supplements, and then to expand them across other subsegments of the category to meet their various health and wellness needs. We have seen that. We believe that will continue to accelerate. And that is one of the organic growth opportunities that I just referred to a minute ago in the last question that we are on the offense with right now. We are spending our marketing dollars. We are innovating. And we are bringing news to the consumer so we can get them to take more products and spread across those categories for growth.
spk07: That's helpful. And are you seeing that in the international markets? Right now, I believe there's some mention that the non-immune boosting products are seeing an uptick in demand. So assuming beyond the pandemic, there could be tailwinds in other products, if I'm reading that correctly.
spk08: Absolutely. The trends we are seeing in Canada are trends that decategory in the industry and we are seeing globally. When we talk about immunity versus non-immunity-based SKUs, it really is referring to what we just talked about. Last year at this time, we saw this massive influx of panic buying around immunity-based SKUs. As the year continued on, the growth in the immunity-based SKUs, the growth level slowed while the other categories grew around it. And as we've turned into 2021 and we started to comp some of those panic buying periods, we've continued to see challenges on comps on the immunity-based product, but we've seen other sub-segments around the category grow. So we're seeing strength in sleep, we're seeing strength in natural energy, in stress relief, in digestion, in a lot of general health categories that really focus on building the consumer's health at the core. And also on things, if you think about some of those categories I just mentioned, subcategories that deal with some issues post-pandemic around stress relief, sleep, things like that. So we're seeing the strengthening across multiple categories, and we expect that to continue for some time.
spk07: That's very helpful. I just had one other question. If there was an update on the U.S. pilot and any metrics you can share around that.
spk08: Yeah, the U.S. pilot is still, as we talked about, coming out of 2020. We went into it very early in 2020 in a test mode. We put it on hold during the pandemic as the pandemic hit early in 2020. We reinvigorated late in 2020. It is still in test mode in the U.S. We will continue to be in test mode through 2021. We're currently looking for some opportunities to expand that test, but there's really nothing that we want to report at this time, and there is nothing material built in on that test in terms of our guidance for the year as it continues to be in test mode and we figure out what we want to do into the U.S. longer term.
spk07: Okay, great. Thank you for taking my questions.
spk05: Thank you. Thank you. Once again, as a reminder, that is Star 1 if you'd like to ask a question. We'll hear next from John Zamparo from CIBC.
spk06: Thank you. Good afternoon. I wanted to follow up on the answer to Graham's question and ask about the e-commerce side of the business, and in particular, the online subscription business. Can you give any color on how these perform in the quarter and whether you're seeing increased uptake from consumers through the subscription channel?
spk08: Yeah, so we continue to see strong growth across all channels led by e-com. And The way we talk about digital commerce is we talk about it down three paths. So we talk about growth in traditional e-com platforms like the Amazon.ca or the well.ca or different platforms internationally. And we continue to see very strong growth in traditional e-com platforms. We also talk about partnerships that we have with our various brick and mortar or traditional retailers that have really started to emphasize and invest in e-commerce capabilities and business. And we're continuing to partner with all of our retailers and and continues to see very strong growth there. We also have a direct-to-consumer pillar that we have in market that has also seen strong growth. In that piece of business, we have two things. We have our regular bottle service that you can order our bottles of products, and then we have our subscription business, as you refer to. The bottle service definitely has continued to outpace the subscription business. It continues to grow at a very strong pace. With that being said, we also have seen growth in our subscription business throughout the year and into 2021. We do see, though, that it is not as quickly or as being fastly adopted in terms of subscription services overall by Canadians as you see in other parts of the world. But we do continue to offer that service, and we do continue to see levels of growth there. And we believe in the long term, we will continue to see that turn into more and more of a material part of the business and of the category.
spk06: Okay, understood. Appreciate the color. I'd also like to better understand your working capital investments. And it's been a drag on cash flow for a few years now. The language in the press release seems to suggest that may be the case this year as well. How should we think about that part of the business for the medium and longer term? Is there a reason to think that's structural? Is there anything you can do to reduce the amount of inventory you need to hold, particularly in raw materials? Or is that kind of a hedge against further cost inflation? Any commentary there would be helpful.
spk01: Well, the level of raw material that we're holding at this point in time is really about risk mitigation from a COVID perspective and managing through potential outbreaks within our supply chain and delays in freight and delays in production. So it's about us ensuring that we've got the product in the facility when we choose to produce it. That raw material component will significantly come down throughout 2021. That will be offset by higher levels of safety stock from a finished good perspective. So you'll see a right sizing of inventory as we get through the end of the year. But then you also have the added nuance that as we grow our international business, the nature of those sales are incremental from a working capital burden perspective. And that comes with a much longer trade term, you know, 90 days as compared to 90 to 120 days. internationally compared to 30 days domestically. So, you know, as our international business grows, so will investments in working capital. At some point, that will normalize. We're being very conservative in terms of what we guide to from a working capital perspective. The good thing is, is that we've got tons of available capacity. And I think over long term, you'll see us returning to significantly cash from operation generation.
spk06: Okay, got it. Thanks. And then my last question is on innovation or the product pipeline for this year. And without going into detail on what it is you're planning to launch, how would you characterize this year's new product pipeline versus a normal year? Is capacity an issue? Do you think more about just servicing the significant demand you have on existing products, or might you launch some meaningful new products this year?
spk08: Yeah, thanks, John. So our innovation pipeline for this year is as strong as any year. We are fully launching a full assortment of products like we always do. Our new investment in capacity, which is now online, a good portion of it, and allowing us to get a lot more product out the door to meet the demand as well as deliver on innovation is great timing for us. And we are expecting a full launch of products this year. Some have already launched in early Q1. Some will continue to launch throughout the year and a very strong pipeline. The one I would call out for everyone, which I think is pretty key to call out, is we will be the first to market in this year, in this front half a year, with a vitamin D innovation, which is increasing the daily upper limits of vitamin D from 1,000 IUs a day to 2,500 IUs a day, which was a Health Canada change that we've been working on for some time. That Health Canada change got approved. We got issued the first in Canada license around that product, and we're proud to announce that we will be launching the first high-strength vitamin D product in the country, which is great timing with all the research going on around the world around the efficacy in terms of vitamin D, in terms of fighting COVID, and also hallowing back to any other viruses. So proud of that launch. We also continue to launch products in the immunity space, sleep space, stress space, energy space. All the trends that are trending up, we have innovations in, and we'll continue to monitor that quite closely. The other one I would just throw out there, without getting into too much specifics, is we also have our apple cider vinegar gummy that has launched in the front half of this year, and you'll be seeing that on shelves soon, and we're quite excited about that one.
spk06: Okay, I appreciate the call. That's all I have. Thank you very much.
spk05: Thank you. We're here next from Tanya Gonzalez from Canaccord Ingenuity.
spk02: Hi there. Just a couple from me here. So you mentioned shipping out more non-immunity products in Q1 for the international segment. I know there was already some talk about the demand shift that's occurred in If that was the reason why this happened, did we see the same kind of trend in the domestic business, or was domestic immunity product still kind of flat quarter over quarter?
spk08: We've seen the demand on immunity continue to be strong versus pre-pandemic rates. we've seen versus the year ago, we've seen non-immunity categories be stronger on the comps just because immunity right now is up against that panic buying period of 2020. So it's a bit of a timing shift there. When we talk about shifting more sales to non-immunity products in the international markets, it also has held true from a shipment perspective in the domestic market. And really the reasons why we're In 2020, when we were having some high demand and some capacity constraints, we prioritized some high-moving immunity-based products through the year to make sure that we were meeting the consumer at shelf on those products that they were really demanding. As our capacity limits have increased and as the demand on Immunity-based products have stabilized. We've been able to produce more of the non-immunity-based products and meet the needs that are out there on those products. So it's some timing shift mixed with some capacity, opening up of capacity mixed with some manufacturing choices we had to make last year to maximize our sales.
spk02: Understood. That's great, Collar. Thank you. And could you confirm for me that transition to a third-party logistics provider, that's complete now, is that correct? We won't see that gross margin impact going forward?
spk01: Yeah, we had guided to that impact, I think, entering the fourth quarter as something that would affect Q4 and Q1. So you will not see any more of those costs going forward.
spk02: Perfect. And are you able to quantify the impact that the signing of the new collective bargaining agreement had on gross margin in terms of basic points?
spk01: Well, when we talk about the normalized impact of gross margin year-on-year for brands, it's within that 40 basis points, and that 40 basis points includes the impact of COVID plus that signing bonus offset by pricing in the quarter. So, you know, we didn't really break it down from a public perspective, but if you can understand those are the three main elements that make up that 40 basis point decline.
spk02: Perfect. Okay, and then just last for me here, when you're thinking about getting the business back to normal and removing some of those COVID measures that you have in place at the facilities, Do you have a plan yet for how you want to go about doing that in an expedient fashion? Are there going to be mandated vaccination programs in place? Are you going to be hosting pop-ups to get employees vaccinated as fast as possible? What are the initiatives involved in that?
spk08: So in terms of getting our facilities back up in post-COVID period you're talking about, our manufacturing facilities? Yes, yes. Yeah, so, you know, there's kind of a combination, I would say, of two things here. One, some safety measures will stay in place for the long term, and we'll see the benefits of that in the long term around less absenteeism, more efficiency to our facilities. So things like PPE, mandating masks throughout our manufacturing facility, encouraging more handwashing, some more separation of people where maybe they were tighter than they needed to be historically. We'll keep some of those safety measures in place. Both while COVID is running hot, but also into the future, because we do think it will reduce the spread of things like the flu and illness and drive down absenteeism in our facilities. So some of those will stay. In terms of COVID specifically, we are on a campaign to strongly encourage vaccination across our manufacturing base. We cannot mandate it at this time, so we are strongly encouraging it. We are working with employees daily to help them set up appointments, find appointments for where they're available, for where they live or where they work, and really working with them every day to try to encourage vaccination. We also are offering some financial incentive in terms of time to go get vaccinated and make sure that we're encouraging people to do that that way. We're also working with some of the public health units in the various locations. We are most notably in Windsor. to work with them to see if it's possible to, in time, get an on-site vaccination clinic. And ongoing, is it possible in terms of if we need boosters or top-ups, would we be in a position to be able to do that on-site? So everything is open on the table at this point. Safety and the health of our team members continues to be our number one priority, both currently and looking into the future. And we're quite confident that we can get everything back to normal and as safe as possible. The other thing I would just also stress is throughout this period and even through Q1, we've continued to enhance our confidence and compliance plan, as we call it, which is our COVID safety plan. And in all of our facilities, all of our manufacturing and distribution facilities that we own and control, we now have rapid testing antigen programs at all of those facilities. It's just another level of safety and precaution that we're taking. So, I hope that answers your question. There's a lot of moving pieces, as you can imagine, at all of these facilities in terms of COVID and what the future will look like.
spk02: Yes, no, it absolutely does. It seems like you guys have really thought about this, so I appreciate that. Thank you for the color. And that's all for me.
spk05: Thanks, Tonya. Thank you. And that does conclude today's question and answer session. I'd like to turn the conference back over to Mr. Pilato for any additional or closing remarks.
spk08: Yeah, thank you, Cody, and thank you, everyone, for joining us on this call this evening. I just do want to stress one thing, and that is, you know, through 2020, we did talk a lot about our confidence and our abilities to grow this business in 2021 versus what was a very strong 2020. We feel really good we've delivered a strong growth in Q1, and it has given us more confidence that we can deliver the growth that we're saying we can deliver on the full year and deliver to the guidance that we're giving in Q2. So if nothing else on the full year, Q1 just gave us more confidence in our ability to deliver growth of what was an unbelievable year in 2020. I also want to just take a moment and thank you, Mark, for your unwavering commitment to the company during your tenure. It has been an absolute pleasure working alongside you, and we wish you all the very best in retirement. I also want to personally thank you for your partnership through this leadership transition. It has been unbelievable to work with Mark throughout these last few months in this transition, and he is leaving this company in fantastic shape and in a position he should be very proud of. I do look forward to working with the entire Jameson team to continue to drive profitable growth well into the future on all of the growth initiatives that we talk about, and we look forward to delivering those to everyone Thanks again. I look forward to speaking with you all on our next earnings call, and have a great night.
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