Welcome to Bellring Brands Third Quarter 2021 Earnings Conference Call and Webcast. Hosting the call today from Bellring Brands are Darcy Davenport, President and Chief Executive Officer and Paul Rhoad, Chief Financial Officer. Today's call is being recorded and will be available for replay beginning at 1:30 p. M. Eastern Time.
The dial in number is 1-eight hundred is 5,858,367, again 800-5858,3 is 67 and the passcode is 7,479,008. At this time, all participants have been placed in a listen only mode. It is now my pleasure to turn the floor over to Jennifer Meyer, Investor Relations, is Bellring Brands for introductions. You may begin.
Good morning, and thank you for joining us today for Bellring Brands' 3rd quarter fiscal 20 call. With me today are Darcy Davenport, our President and CEO and Paul Rhodes, our CFO. Darcy and Paul will begin with prepared remarks, and afterwards, we'll have a brief question and answer session. The press release and supplemental slide presentation that support these remarks are posted on our website in both the Investor Relations and the SEC filings sections atbellring.com. Call, please press star.
In addition, the release and slides are available on the SEC's website. Before we continue, I would like to remind you that this call will contain forward looking statements, call, which are subject to risks and uncertainties that should be carefully considered by investors as actual results could differ materially from these statements. Today, these forward looking statements are current as of the date of this call and management undertakes no obligation to update these statements. For a reconciliation of these non GAAP measures to the nearest GAAP measure, see our press release issued yesterday and posted on our website. With that, I will turn the call over to Darcy.
Thanks, Jennifer, and thank you all for joining us. Last evening, we reported our 3rd quarter results and posted a supplemental presentation to our website. I'm happy to report that we turned in a record quarter with net sales of $342,000,000 and adjusted EBITDA of $70,500,000 Performance exceeded our expectations, lifted by success of our growth initiatives and tremendous category momentum. Premier Protein and Dymatize grew net sales is 65% 99%, respectively, driven by distribution gains, strong velocities and favorable category tailwinds. Following our better than expected Q3 results, we are once again raising our outlook for the year.
We now expect net sales to grow at 27% to 30% for the year, we're also raising our adjusted EBITDA guidance range to between $230,000,000 $235,000,000 we continue to experience meaningful cost pressure. However, our price increase on shakes, upcoming powder pricing call and our cost out programs are helping to offset these headwinds. As a result of accelerated growth, coupled with network delays in adding TETRA capacity, we have run into short term supply constraints. Over the next several quarters, we are adding significant capacity into our existing co manufacturers as well as expanding our co manufacturing network. Delays in 2021 capacity stem from the same issues I expect that you've heard from other companies, challenges with equipment delays and limitations on labor.
While we expect inventory will be low for several quarters, our organization has experience managing in this environment, while focusing on our priorities to deliver our long term growth objectives. We've faced capacity challenges before and thrived on the other side and I expect a similar outcome again. Will provide fiscal 'twenty two guidance in November, but to preview, we expect net sales growth and adjusted to EBITDA margin to be well within our long term algorithm. We will give more context and detail in the November call. Turning to this quarter.
We are seeing tremendous growth in the convenient nutrition category. Ready to drink beverages grew 29%
Adjusted EBITDA was $70,500,000 up 83 percent and EBITDA margin was 20.6%. Our top line performance is very strong across all brands. Also results further benefited from category tailwinds as well as lapping the COVID related impacts in the prior year. Premier Protein net sales increased 65%, primarily driven by RTD shakes. Distribution gains, strong velocities and better performing promotions drove this growth.
Additionally, we lapped the negative COVID impacts in the prior year period. Last, ShapeNet sales growth outpaced volume growth reflecting list price increase is taken in the Q3 and favorable product and customer mix when compared to prior year. Diamatized net sales nearly doubled this quarter, growing 99% and benefited from lapping the negative COVID impacts in Specialty and International Markets in the prior year period. Strong distribution gains and velocities were the primary contributor to the brand's exceptional growth. Favorable product to customer mix drove an improvement in average net selling prices.
Turning back to consolidated results. Gross profit of $111,300,000 increased 62% this quarter with an expected decrease in gross profit margin to 32 5%. As we have previously discussed, this decline resulted from higher freight and input costs. SG and A expenses were $42,600,000 and as a percentage of net sales declined 360 basis points to 12.4%, reflecting leverage of our SG and A base. This leverage was achieved despite $3,400,000 of incremental marketing and consumer advertising expenses and higher incentive compensation accruals.
Operating profit of $51,500,000 increased 68 percent or $21,000,000 compared to prior year and was negatively impacted by $11,800,000 of accelerated amortization. This was a non cash expense recorded in connection with our decision to discontinue our Supreme Protein brand and was treated as an adjustment for non GAAP measures. The Supreme brand was fully amortized in the 3rd quarter. We had a strong Q3 for cash flow generating $72,000,000 from operations. As of June 30, net debt was $529,000,000 and net leverage was 2.3 times.
Call to our outlook as Darcy previewed, we are raising our fiscal 2021 net sales guidance range to $1,250,000,000 to 1,280,000,000 with adjusted EBITDA expected to range between $230,000,000 $236,000,000 We We expect our strong sales and category momentum to continue into the 4th quarter. Organic growth, distribution gains, planned promotional activity and our shake price increase for driving net sales growth. Whey protein and freight inflation have continued to rise ahead of our expectations and along with milk protein inflation will pressure year over year gross margins. Recall our 4th quarter typically carries the lowest gross margins driven by the volume of promotional activity in the 4th quarter. We expect SG and A leverage to offset a portion of the gross margin decline.
We are thrilled with our year to date performance. Our confidence in the Bellring story remains unchanged.
And our first question is going to come from the line of Andrew Lazar, Barclays.
Great. Thanks for the questions. Good morning, everybody.
Good morning.
Darcy, I want to start off with maybe trying to compare a little bit the severity of the capacity constraints that Bellring faced at the end of 2018 early 2019, just sort of what you're seeing now. Back then, obviously, it forced of the company to cut back on a couple of flavors and sort of SKUs, maybe cut back on some promotional activity with key customers. And And it certainly did impact the top line performance pretty significantly. Can you compare a little bit about what you're seeing now to then and if it requires you to call back on flavors or SKUs or innovation in any way or promotional activities with key customers? That would be the first one.
Sure. So it is I would say it's pretty different from last time. So first of all, we have a is a healthy network of co manufacturers. We've worked really hard to diversify and to add more co manufacturers to our network. And we are making significantly more shakes every quarter.
So I mean just to give a little more color than I did during the prepared remarks is, we just significantly grew is faster than our best case that we forecasted. So we were prepared for a 20% increase, which was double our long term algorithm and we have flexibility to go even higher than that. And we ended up growing 30. And so and then the flex capacity that we thought we had that we were relying on was delayed to 2022 and those were some of the reasons that I talked about before, which was around manufacturing delays and labor issues. So, we went into our we basically dug into our inventory.
And then and as you know, we've talked about how to add it takes some time to add capacity. So you're right, we're going to we're not going to be is forced to go as extreme as we did before, which was going down to 2 flavor strategies. What we will likely do is we're going to have to manage demand to supply for several quarters and we will use the obvious levers which would be both promotion and marketing to do so.
Yes. Got it. And then I think last quarter you mentioned that your sort of base planning assumptions call for elasticity did not include competitors raising pricing. I have to assume given what we've seen in costs for everybody that generally there's been a general raising of prices across the board, but Which would make elasticity maybe a little bit more tenable anyway, but wanted to get a sense from you on how that's been progressing. Thanks so much.
On. That's exactly right. So and that is one of the factors that led to our beat in the quarter. Call, the first was just around the category tailwinds, which were stronger than we expected. But the second is around our assumptions around shake We did assume that we would see some elasticity and a couple of things factored in.
We just haven't. We haven't seen any hit to volume at all and it was really a result of a couple of things. 1, retailers reflected at shelf later than we expected. And then also as you said competitors, there have been call, competitors follow. We just started seeing that late in the quarter.
And then lastly, we just we've actually seen volume increases, instead of volume declines since we raised price.
Thank you.
Thank you.
And our next question will come from the line of Ken Goldman, JPMorgan.
Hi, thank you. Good morning.
Good morning.
I wanted to first follow-up on Andrew's question question about some of the balance between supply and demand. I think Darcy you mentioned that it's you'll have to manage demand of supply for several quarters, I assume that your guidance for 2022 has been somewhat informed by that. Is there any call rough sense you can give and I know it's early and you're not giving full guidance at this time, but rough sense of what you can give for how that 10% to 12% range has been perhaps affected by your relative inability to supply the demand at this time?
We factored that into our preliminary estimates and you're exactly right, Ken. We're not ready to 10% to 12% on top of the kind of outsized growth that we saw this year. And that's going to be coming from several different places. It's going to be is going to we're still going to see growth. We expect to still see growth in shakes, but we now have strong powder and we're going to we expect to see growth in powders as well.
Great. And then My follow-up for Premier over the 52 week less 52 weeks, you showed a slide. You're growing almost as fast in supermarkets as we're growing in e comm, I'm sure grocers are seeing these numbers, thinking about ways of expanding their visibility. Darcy, you've previously you said, we're not seeing any signs of a given space in a much more heavily traveled aisle soon. So I guess I'm not going to ask about that.
But What other steps can you take with your supermarket customers to improve your visibility and sort of take advantage of those velocity trends? And Maybe it's just as simple as continuing to build more and better displays, but just wanted to I guess get your thoughts there.
Yes, that's exactly right. We know what drives our business. Displays are a really effective way within the tool set that we have right now, effective way to bring in new consumers. I mean, I said this in my prepared remarks, but we're bringing in 80% of the new people into the category. So we are doing that even within the set, but display is really effective.
Our advertising is really effective and just the product. So I think that what we're doing is working those grocery and mass customers are seeing the tremendous growth. So, we're both incented to continue to drive the category.
Thanks so much.
Thank you.
And our next question will come from the line of Pamela Kaufman, Morgan Stanley.
Hi, good morning. Good morning.
Good morning.
What factors Do you see us contributing to the elevated demand that you've seen recently? And I guess what's kind of driven it to be ahead of what you were planning for relative to your expectations.
There were basically 3 areas that over performed and I referenced some of them when responding to Andrew's question, but the first was the category. The category, We haven't seen these types of increases in the category, really ever. The category was liquids was at 29% in the quarter, But even some of that is due just a lapping COVID, but even when you look at June July and when you get to June July, you are no longer lapping the COVID period. So that is pretty clean and the category is still Growing mid double digits. So if you think of what it was like pre COVID, we were seeing pretty much steady 5% to 6%, now we're seeing mid double digits.
That's it's pretty dramatic. So and that goes back to I hit some of the drivers from a consumer behavior standpoint in my prepared remarks, but we did conduct a study to really get under what is driving this kind of outsized category growth and it was those things that I referenced. Consumers are constantly thinking about how to improve our overall health. Consumers are looking to lose weight They're looking to exercise more and they're looking for kind of sports products. They're also seeking health advice and doctors are recommending this category and they're recommending Premier Protein.
And then there's also just some economic conditions as stimulus and America reopens. I mean traffic is generally, it's just very high. So those are all leading to kind of outsized category tailwinds that we were not expecting, on the gravity of it. The second piece is around shake pricing elasticities. We did have some conservatism in our numbers.
We're not seeing them. And then the third is really around Dynametize. We saw better than expected results out of Specialty and International than we forecasted.
Great. That's very helpful. And to what degree is the capacity that's coming online incremental to the original plan? And how much flexibility will you have to scale back on production if demand moderates?
Call the new capacity is all incremental. So, the and then from a flex that we always incorporate some flexibility into our forecast. So, we will always be able to kind of dial it up and dial it down. Great.
Thank you. Thanks.
And our next question will come from the line of Chris Growe with Stifel.
Hi, good morning.
Good morning. Hi.
I just had a question if I could first on to understand I think to Paul, The pricing came through this quarter. You also talked about inflation kind of coming in ahead of your expectations. I just was curious as you stand today, Does pricing offset inflation? And is there a chance to go for more pricing given some of the continued inflation you're seeing in your business?
Yes, you're correct. We have seen continued inflation particularly on our Powder business and so that we have a price increase call in Q1 on that and we're continuing to evaluate the level of price increase there because the The increases on whey protein have really, really done a much higher. On our shake business, our price increase is largely offsetting call commodities, but as they continue to rise, we'll continue to evaluate some additional levers to pull there to offset that especially as we get into 2022.
Okay. And then I had a question, Darcy, on supply and just thinking about when you run into these issues where you have a shortage of supply in some cases, Just like the cost basis of your supply chain. So I'm just are there specific geographies, for example, now that you've got a pretty good diverse call supply of product where you have less of an inventory buffer. Therefore, you may have some more margin effect. And therefore, as you get back to kind of full production, you can actually get a better kind of lower cost opportunity for your business.
Does that make sense?
It makes perfect sense. And I'll start and I'll let Paul add on. But you're right. I mean, we are during this period of time when we're low on inventory, we're basically shipping product wherever it is to wherever it needs to go, which is not efficient. And so and we will continue doing that for several quarters until we build back of our inventory and once we do, then we're going to see the benefit of that.
Call, obviously, we're going to this is all dynamic. But if I were betting, I think we'd see that toward the end of
2022. Okay.
Yes. Chris, you're correct. I mean, we do have some what we call freight cost efficiencies in our numbers, especially in Q4, as to Darcy's point, we are working hard to ship product wherever it needs to go. That's always going to be the most optimal cost. And as we expand our network, then that gives us even more flexibility to optimize freight.
Okay. That's very helpful. Thank you.
And our next question is going to come from the line of Kamil Gajrawala with Credit Suisse.
Hi. Thanks for taking the question. The first one is on investment spend and marketing. Now that wellness has really taken off, obviously, this wouldn't have been part of the plan a couple of years ago and particularly Powders. Has this changed your investment plan or your capital deployment strategies?
Yes, on powders absolutely. So we see and I think it's we've seen Great tailwinds on kind of our powder businesses and that is both Dymatized and Premier Protein. What I am excited about our powder portfolio is we have 2 brands that go after 2 distinct call consumers and they both are and we have figured out what drives those businesses. We have a ton of upside. I think there is Tremendous opportunity, especially on kind of mainstream powders.
If you look back at what Premier did to RTDs, and meaning that the kind of mainstreaming of that category, I think that's coming in powders. We're starting to see it. I mentioned that everyday powders in track channels is now the same size as call, which is a really big change in the category. So absolutely, we're planning on supporting powder. We are because we've seen some kind of outsized demand on powder, we do need to build up our inventories again.
We did our demand was higher than our capacity for powder, so we did dip into our inventory. But once we to fill that up, we're going to be supporting it strongly next year.
Thank you. If I could ask a question that's in some ways maybe linked to the first question, which is in your prepared remarks as it relates to the post transaction, you mentioned liquidity as well as something strategic. Is M and A maybe now higher on your priority list given that transaction and how you're looking at the categories?
Nothing has changed in our kind of general view on M and A. I mean, I still think, you've heard me say this many times, but we're focused on the our organic growth of our brands. We still believe that's the biggest opportunity. However, we are constantly looking at what's out there from an M and A perspective. And so this definitely readies even more to take advantage of those opportunities, but that's not the driving factor.
Got it. Thank you.
And our next question will come from the line of Bill Chappell with Turis Securities. Thanks. Good morning.
Good morning.
Hey, Darcy, I Fully get the pickup in health and wellness at the end of the pandemic and what your studies losing weight and feeling healthier and stuff like that. But Did something in your findings see that shakes versus bars kind of tipped? Because it seems like you're certainly outperforming the within the various forms and factors. And I didn't know that would seem if we were all going back to work and on the go, maybe that would drive it. But I didn't know if there was some reason why you were seeing and And if it was sustainable that the shakes are now really kind of stepping up even further.
So bars have over call if you think of the 3 form, bars, shakes and powders and the degree that those categories or subcategories have mainstreamed. Bars have definitely mainstreamed first. So and when I say mainstreamed, Bars have really become more of a snack food. The household penetration of bars is 50% call, it's more of a healthier snack, but it is a snack. Whereas call, both shakes and powders haven't gone there to that degree.
I mean, the household penetration of shakes is still about 25%. So if you think, I mean, it could double just to get to where bars are. So I do believe Inland Powders is even lower from a household spend standpoint. I think there is more of an association of kind of is proactive health. There from everything from kind of higher protein levels to immunity claims to vitamins and minerals.
I mean the vitamin and minerals, so when we ask consumers why from a nutritional standpoint they purchase our shakes. It's number 1 protein and second is the vitamin and mineral blend. So I think that it just there is more of a health halo around both shakes and powders where I think there's more of a snacking halo around bars.
Got it. But nothing's really change over the past 4, 5 months is just kind of coming out that this is kind of manifested.
Yes. I don't think anything has changed in from the product Delivery standpoint, what I think has changed is just the intensity and the focus around health and wellness and their focus on and also I mean the big reason why people enter the category is they want to lose weight. It's not about going to those is weight management brands, but people I mean, we get success stories all the time around people using premier protein and losing weight.
Got it. And then one just a question on channel. I mean, now you've come through a season of expanding even further into the club channel where you probably have 5 times the number of SKUs that a normal CPG company would have in a club channel. But you're still seeing strong growth there. I guess looking forward, is there Possibility of further SKUs, further shelf space.
Is it just velocity here? Or are we starting to see some maturation question of that most of the growth will come from non club channels going forward.
Yes. I mean, our I'm really pleased with our club call channel growth and really it is around velocities and traffic. I don't expect us to get a lot more distribution in the club channel, but I do think there's a lot of upside, just from a household penetration and just the more people even just leveraging the incredible call the traffic that the club channel is getting right now. I mean, their traffic numbers are off the charts and it's really impressive. So I think that we'll be leveraging their increased traffic as well as, there's a lot of upside just from a household penetration standpoint on our brand in the club channel.
Great. Thanks so much for the color.
Thanks.
Thank you. Our next question will come from the line of Bryan Spillane with Bank of America.
Hey, good morning, everyone. So I wanted to ask a question just about the capacity expansion and just prepared remarks, was this a project that's already been delayed? I think you mentioned something about other companies having issues getting equipment. So I guess that's my first question is just When did this start? Has it already been delayed?
Is the first question.
So, yes. So, I would say it is a 2 fold call, problem, I guess. So the first was outsized demand, which I talked about that. The second was our when you think about our flex capacity, that To get that flex capacity, we were relying on new lines to come into our existing co manufacturers. There was expect we are expecting to see approximately 9 lines, only 4 came in.
So only 4 got put into our co man network, 5 got delayed However, I want to just be super clear, our co mans are amazing and they have delivered on their commitments and they've done extraordinary work for us to support our business throughout this pandemic, so I have nothing but positive things to say about our co man.
Yes. No, I appreciate that. I just I think we've all had experiences with call difficulty buying everything from patio stones to lumber and just several projects have been delayed. Just trying to get a sense for what's the risk Labor issue in terms of getting the lines up and running, just it'd be great to know like what percentage of What needs to be done to get those lines up and running next year has been completed? Or like where are we in the timeline of that project?
And is there
a possibility for further delays?
Yes. And it's really not one project and it's not one co man. So, it's a we are basically adding we are adding capacity every quarter, and we are call every quarter. And we are adding and when I say we, I mean in partnership with our co man partners. So, they are adding capacity both so some of it is labor.
Call, the situation that I was told by the CEO of one of our partners was they have Four lines and every weekend they don't have enough labor to run. One sits idle. One line sits idle because they don't have The labor to run it. So that just gives you an example. So right there that in that situation, the capacity is in there.
It's just about training, call getting enough labor and these are the talent high talent labor. And so, it's about training them and bringing them in. That is well on its way. There are different on situations where we are we've already gotten the equipment and it's being installed. And then there are other ones that are more long lead where we're that we're waiting for the equipment to be delivered.
So I would say there are various timelines that we have factored in and we have been conservative in our projections.
All right. That's helpful. Thanks, Darcy.
Thanks.
And our next question is going to come from the line of Rob Dickerson with Jefferies.
Great. Thanks so much. Sorry, Steve. Just kind of general question around the capacity again, but kind of how it differs potentially for you relative to the category? Obviously, it sounds like call category growth that you've spoken to is far ahead of where it was just 2 years ago.
Call my assumption is you are likely or hopefully not the only company in this situation. Call I guess kind of the direct question is just as you get through this increased capacity build to meet demand, As you look out throughout the category and your competition, you feel like others are in a similar situation such Your actual market share should not be threatened because others might be able to fill in that demand more quickly than you.
Yes, we are not alone. So the entire aseptic processing network is constrained. So if anyone is trying to get more capacity call that they have already contractually committed to, it's going to be difficult. It's going to be it's going to take some time until the network catches up to this amazing increase of demand.
Okay, fair enough. And then Just mechanically for you, Paul. I know there's a question earlier around M and A, in regards to thinking about capital allocation the same way, Look at pipeline, I heard on the other call this morning and kind of saw in the release, it sounds like Post distribution from Post that leverage will be at a rate similar to the IPO. And I just I had a number of people keep asking it. The one question is kind of what is that leverage ratio when you And then secondly, as you think through that special dividend, just to clarify, it sounds like what is call implies here is just that cash will be coming out of Bellring, but you're going to put more leverage on the business Pay the special dividend and then you'll reset from there.
So kind of indirectly, it sounds like it'd be fair to assume that call further acquisitions wouldn't be a near term event, especially given the capacity constraint and the special dividend.
Yes. So Rob this morning did touch on the leverage that Similar to the IPO timeline. So that range was near 4 times. It was just below 4 times. But as a company, call we're a fast growing business that generates tremendous cash flow and we delever very quickly.
And so our expectation would be while you may be right at a point in time a larger M and A transaction may be a little more challenging at that leverage level, but we can delever so quickly that we don't see it as an impact really to our near term strategy to seek M and A.
Okay. Fair enough. And then just quickly, I'm not sure I heard you in the prepared remarks just talk about how, let's say, having a co man supply chain can actually potentially benefit you on the margin side relative to others that have it in house. And then just I speak with other companies right there's if there's a lot of upside, you're getting a lot of volumes, you're actually and the commodity environment normalized, you might get a lot of upside in margin, but if it goes down, you might actually it's pressured a lot more co man, it's usually absorbed a little bit by those co manufacturers. I'm just curious if you could just kind of touch on that and kind of how that may or may not help you going forward.
Hey, Paul, I'm going to let you tackle this one.
Yes. I'm going to ask for clarification. So is your question around maybe could you restate your question? I'm not sure I fully track
It's just sometimes co manufacturers absorb some of the costs, right, that you would have to absorb internally if you had a full in house Manufacturing. I'm not sure if that's right. You can just try to get color on that.
Yes. I can't speak for what others do. I think from our perspective, We control the buys of the major commodities. So we're buying the proteins because we believe that we call with our scale of leverage get the best buy of those proteins. There are some smaller things that are coming by that.
We try to leverage where they have advantages to cost and then where we have advantages to cost. And then that's so that's how we see Our competitive advantage is that we're optimizing that on both ends, but I can't speak for how others work on that.
I get it. All right, great. Thank you so much.
Thank you.
And our final question will come from the line of Ken Zaslow with Bank of Montreal.
Hey, good morning everyone.
Hi, Ken.
You look at the elasticity and through the findings, it seems like your elasticity is actually fairly low and that there's able to be price increases. We've seen other companies call it confectionery companies who've kind of transitioned a little bit towards making more frequent call pricing changes price increases rather than just doing when there's inflation. Would you consider that as an option given the low call that you have?
I mean, we would. I think for now, call, we are still looking we are a growth brand. We are trying to expand. We believe that we are sort of in the early innings of the Premier Protein brand growth. We still have a ton of upside from a household penetration standpoint.
We have a ton of upside from a market share standpoint. We're excited to grow the liquid category and have more people use this category and our brand. So I think that would be the reason why we would not, just because we are still wanting to grow call as fast as we can. Now if we see increase those are always part of our valuation as we're looking at rising costs, etcetera. I mean, there is a cliff at some point.
We aren't seeing it now, but we're Probably not seeing it, because of the other competitors have brought it. Also, we didn't see it until many of our retailers didn't raise price until the middle of the quarter, but and we're going to be watching it closely.
Okay. My second question is on repeat purchases. What was your repeat purchase? And What do you attribute to and what can you learn from those findings to do something better going forward? I'll leave it there.
Thank you.
Yes. Our repeat rate has stayed over 50% and that's for the last 5 years. So you think about from 2017 to now, how much our business has has changed. I mean, we've doubled household penetration, but yet our repeat has stayed above 50%, which is really, I mean, it's one of the top repeat rates in the category. So I think it's just a testament to an amazing product that consumers Absolutely love.
I mean one of the metrics that we track is around brand love and that's really important. And so we want to always make sure that we are kind of surprising and delighting our consumers with And that's going to look we look across a lot of different kind of touch points. It's everything from new flavors to call our improvement on our shake around immunity, it includes all kinds of different improvements to the product as well as expanding. So I think that our goal is to keep that as high as possible. And based on the track record, I think we'll do that.
Great. Thank you.
Thank you. Thank you. And with that, we will conclude today's Bell is
Ring Brands Quarter 3 2021 Earnings Conference Call. We do appreciate your participation and ask that you please disconnect. Thank you.