BRBR - Earnings call transcript Q3 2021

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Operator

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 Rode, Chief Financial Officer. Today's call is being recorded and will be available for replay beginning at 1:30 PM Eastern Time. The dial-in number is 1 (800) 585-8367. And the passcode is 7479008. participants placed all mode. a time, this have in been listen-only At is turn Relations, Meyer, introductions. to my BellRing floor for It pleasure Jennifer the now over to Brands, Investor

begin. may You

Jennifer Meyer

today thank CFO. presentation Paul for fiscal and Darcy earnings me and release that President and have we'll a Davenport, question-and-answer With and afterwards, posted supplemental will are press our call. Brands Paul bellring.com. and the morning, Good CEO; slide Filings XXXX joining us these and And in third remarks. prepared of for on support you session. brief are quarter Darcy the our with today remarks begin both BellRing The sections Rode, website our Investor SEC Relations

on website. In addition, the the SEC's release available and are slides

I investors you that Before could actual undertakes contain date management to would call will are remind of and as by statements, uncertainties differ of risks update no statements from and statements. like the this to considered this as to forward-looking call, carefully obligation statements. These that which forward-looking subject these these are results current materially be we should continue,

finally, certain be this As audio call will recorded, website. is available non-GAAP discuss this And on and call replay will measures. our an being a reminder,

Darcy. For see that, With I the to our of and a measure, on reconciliation call our website. will to these nearest press over yesterday GAAP non-GAAP measures the posted release issued turn

Darcy Davenport

respectively, and lifted turned and all record for by happy our distribution to XX%, results with I'm thank in us. strong tailwinds. Performance our million. XX% and Thanks, growth quarter of $XX.X presentation net we velocities and gains, $XXX Premier Protein Dymatize of sales reported EBITDA momentum. category category our exceeded of and quarter by sales report you Jennifer, favorable expectations, driven tremendous success supplemental third grew adjusted and initiatives that a to million net evening, a and joining Last we posted our website.

results, at we expect raising raising our and between quarter grow for We the third better-than-expected the to guidance adjusted our are year. to also again range XX% for outlook our million. Following $XXX to now $XXX million year. XX% sales EBITDA once net We're

to continue pressure. cost experience We meaningful

pricing increase helping programs cost-out on to shakes, offset headwinds. our our upcoming powder price actions these and However, are

result growth, a delays accelerated in Tetra supply network run As we adding into of have with coupled constraints. capacity, short-term

in we several our the Over issues the are expanding existing labor. significant stem same from companies, other you've as quarters, with from expect well and into I Delays equipment next limitations delays co-manufacturers heard XXXX capacity adding our challenges co-manufacturing on as capacity network. that

While we deliver expect our inventory for will objectives. this environment, our while on long-term to several has quarters, organization in managing for growth focusing be low our experience priorities

expect long-term sales net EBITDA growth margin our within We algorithm. well to and be adjusted

in in the more detail give will call. context We November

Turning to this quarter.

in tremendous year but seeing nutrition sequential convenient more impressive Ready-to-drink even XX% the growth. are beverages ago, the Difficulty] We category. grew [Technical growth versus a is

Paul Rode

[Technical Difficulty] XX% was million, and margin $XX.X XX.X%. up EBITDA EBITDA Adjusted was

COVID-related further Also, strong very impacts primarily from increased as performing promotions net and sales tailwinds RTD in category Our this well performance strong velocities the across drove growth. better line prior gains, is Distribution Protein as results lapping by brands. top Premier shakes. the year. all driven benefited XX%,

prices. quarter, and increases prior outpaced mix to compared customer third negative Last, the growth COVID doubled Additionally, contributor velocities reflecting exceptional this drove quarter the sales we growth, benefited net from average were negative the the Dymatize favorable net volume taken lapped impacts sales and in product period. year price in shake net nearly improvement COVID prior year. international list the when an mix in impacts and and lapping the brand’s and Favorable selling in gains period. customer in markets to primary product distribution Strong specialty XX% the growth. year and growing prior

Turning back quarter, profit profit an to expected million in gross of XX.X%. $XXX.X this margin results. consolidated XX% to with decrease Gross increased

discussed, SG&A amortized $X.X This our leverage base. Operating As higher was of incentive of basis million input higher and expenses consumer XXX million cash non-GAAP flow, leverage advertising fully in was measures. this and from recorded brand the million to discontinue million and points generating sales to connection The we incremental declined net expense have million, XX.X%, was decline a freight expenses was with strong resulted $XX.X Supreme We in previously as for third treated prior or compensation $XX quarter. our a of from Supreme by accelerated of $XX negatively This achieved accruals. year our and Protein an percentage were costs. and impacted third to $XX.X was of $XX.X compared had as profit by adjustment and a XX% reflecting for SG&A million marketing amortization. quarter decision increased noncash operations. brand

was June $XXX million, X.Xx. of net was leverage As XX, and net debt

to outlook. Turning our

sales we net previewed, range to to $X.XX Darcy EBITDA with million guidance $XXX billion $XXX XXXX our fiscal and $X.XX raising million. are between billion, As expected adjusted to range

sales volume lowest Recall will with by fourth distribution activity momentum shape our gross price and year-over-year typically continued carries continue inflation ahead planned along driven promotional quarter. into increase our are quarter. gains, and freight inflation strong in our pressure have to to growth. the fourth and rise protein of gross net promotional our margins. milk expect We Whey driving the the category of Organic sales fourth the growth, margins activity expectations, protein and quarter

We portion gross the expect SG&A decline. of a offset leverage margin to

are We performance. year-to-date with thrilled our

like operator With questions. that, confidence call would remains for turn over back to the the to Our in the story BellRing unchanged. I

Operator

come our to Barclays. Andrew question is Instructions]. the Lazar, going And from line [Operator first of

Andrew Lazar

a cut compare on faced couple back sort 'XX sort it forced wanted then, a to Back with, little 'XX, constraints what and trying bit, start of maybe that to maybe you're of off now. just severity to of capacity company I back early at of the then, end seeing Darcy, and customers, flavors SKUs, what to now the the with BellRing of, cut promotional did pull certainly way or the line then key little would That on it you and in the activity or and be if pretty seeing obviously, to it performance customers? Can top key any significantly. first promotional or you're back impact bit requires flavors SKUs one. activities some you compare a with on innovation about

Darcy Davenport

Sure.

time. is I pretty would -- it So say last different from it's

to So first we shakes network. add of to hard every all, are and co-manufacturers. of quarter. And to making co-manufacturers We've significantly really we our have healthy network a worked more diversify more

than that we significantly I more So I to forecasted. best than color did is, grew prepared the our mean, case faster give little remarks a during we just just

ended for we So growing was prepared have XX% which to higher that. long-term a go our we increase, double And were we algorithm. than flexibility XX%. up And even

And then we issues. that 'XX, the some around and those that the about to and and were which had flex so we that we reasons I thought delayed -- was are of on was labor before, capacity talked delays relying manufacturing

our basically capacity. how So inventory. we've we you and our add as -- takes then -- time went into into And to dug we some it about to -- know, add talked

we was going as and have to going going both marketing levers, obvious extreme So we're we're manage which is go What will to to we're the promotion which we do supply flavor to forced strategies. not before, to to do did use down as quarters. -- several you're would for to X going so. demand be And be will to likely we right,

Andrew Lazar

to I Yes. last include have I planning you competitors of general Got on elasticity that we've think anyway. how in from base pricing. the not mentioned then but sort tenable get did it. that's raising assumptions what costs a maybe little seen And assume, been everybody would which elasticity that, quarter, of, a your, for generally, for But board, prices been bit progressing. you there's raising to across wanted a more sense I make given

Darcy Davenport

exactly right. Yes. That's

factors the So that one to that led -- is beat our and in quarter. the of

just the we We was elasticity But tailwinds, did that see category shake which elasticity. around were we the first couple We haven't. around just assumptions assume expected. a of would stronger is in. things and factored than around our second some The

been We than at expected. then it of also, hit really result of said, retailers you since we declines things. we late in as we've to was One, all. just volume we haven't the We lastly, a -- couple competitors of follow. And price. that instead quarter. just And have then reflected later volume started shelf seen increases any raised there And seeing actually competitors, a seen at volume

Operator

of And Goldman, our come next from the question will JPMorgan. line Ken

Ken Goldman

supply about of some up I between balance demand. first the wanted Andrew's and to on question follow

know by there I you how giving mentioned I has XXXX of by not at think, that. you to for demand rough relative what have XX% you supply XX% that any you're demand range that for supply guidance to this sense manage time? -- your has informed to Is and give it's I quarters. can that several give? early it's guidance rough can been to perhaps, somewhat But inability assume your you'll time. for this affected at sense full the Darcy, been,

Darcy Davenport

growth. we're we XX% to can several be preliminary we to to 'XX, going give still that's on we And into that saw different to from that top that It's but we that grow kind details XX% factored We're places. be estimates. you exactly you're go sense believe our into And -- growth We of of, Ken. coming outsized ready year. going the, right, a going not to did this see to into want still

We powder have growth and expect businesses, we're shakes. to going as to in But we strong see to powders still we well. see growth now expect in --

Ken Goldman

said more visibility. of my seeing I'm showed a supermarkets a a going any then you traveled given numbers, in Darcy, thinking growing XX you're seeing we're heavily about expanding And grocers sure weeks, space fast the you over not in last are as Great. for eCom. slide, much follow-up, as these previously Premier XX of you're signs aisle ways weeks, in soon. their almost

sort take going about what thoughts to other simple better guess, So just displays, improve continuing can maybe but those your advantage of that, I you velocity I'm take trends? but more ask build And with and, your guess not it's and supermarket to your get to, visibility wanted customers I to as as of, just steps there.

Darcy Davenport

mean, to into right. really said in bringing my within tool XX% I the we set that's We the -- category. in I ways prepared in this people what effective the now, new effective a drives of are business, remarks, that way right have Yes, consumers. we're but new displays exactly know bring our

is even doing display So we really set, within are effective. but the that

Our effective advertising the and just is really product.

So that customers and seeing Those doing we're what growth. mass I the are grocery is think working. tremendous

we're to category. So incented the both drive to continue there,

Operator

come Pamela of And question the from Kaufman, line our will next Stanley. Morgan

Pamela Kaufman

what you recently? the you to demand kind be you've What that expectations? what's, planning contributing to elevated of relative were as of, guess, see factors it do I seen for ahead driven your to And

Darcy Davenport

over-performed. just -- of the we The due when There seen up of was, when But ever. X I even July, question. some were in some areas And XX% June category But the a basically but first July, increases when the haven't look the are category these that is types to -- lapping lapping of at referenced and and them Andrew's COVID. to responding the The even in June and was longer you category, really, liquids category. COVID that period. quarter, you you get no even was

the category is pretty digits. mid-double still is that clean. And growing So

what you to X%. So it seeing think pre-COVID, of steady pretty X% were was much like we if

mid-double Now digits, but we're pretty seeing dramatic. it's

from kind I this, hit mean but a back we -- driving are get prepared -- some conduct of all of, to referenced. So are goes consumer Consumers a really I to is it drivers growth. study behavior did my health, things know the remarks, standpoint those this. what under And was looking to, we outsized and eat I in category healthier. They that that

our During constantly more, to stimulus as looking weight of, I they're overall and a how kind high. we exercise after, are sports doctors Premier they're of, health category, about Consumers is just are this very sedentary Protein. thinking period. to America economic looking lose mean and improve COVID to And looking period, They're kind health. also products. and recommending then advice They're recommending just are this and seeking some generally there's traffic just reopens, conditions also for,

of, kind the outsized we So not were of it. expecting all to, those that leading tailwinds category gravity are

of then did our forecasted. And is conservatism pricing better-than-expected is second We We're elasticity. seeing numbers. The some them. around really We international have Dymatize. shape and not out in results than saw around the third piece specialty we

Pamela Kaufman

back And to helpful. to demand scale to online much very That's capacity on the is that's have you degree what Great. plan? original flexibility will And if incremental the moderates? production how coming

Darcy Davenport

is capacity new the mean incremental. I all -- new The

So the -- and always we some incorporate our a -- then from into flexibility forecast.

to, and be it will it dial we up kind always down. dial of, So able

Operator

of with come Stifel. the next question Chris line will And from our Growe

Chris Growe

I just through the I question, had first think, -- this could, to Paul, I on quarter. understand, if to a came pricing

talked pricing offset continued coming some of go ahead of, you're also a your kind I does pricing, business? inflation? stand is the to inflation, inflation your just for You there in more today, curious, of chance as was in seeing about expectations. given you And

Paul Rode

Yes, correct. you're

to some seen to is whey Will particularly that. that, offsetting We increases business, gotten really price commodities. have have they protein QX in But we levers and to largely price to increase XXXX. our business, level have pull the there. because And we continued powder evaluate a our of continue to there really, evaluate our On going inflation, effect especially we're so much increase price on on as continuing as offset that on increase look continue we'll higher. additional into the rise, shake

Chris Growe

a like basis then the just and cost these cases, of in supply run your Darcy, a Okay. issues of have just And some supply on about I had when chain. shortage into you thinking question, supply where you

of margin make more a you back therefore, get kind some better, can actually And your have Does geographies, So as business. of you cost example, good less kind inventory pretty are lower that can for you've therefore, supply now a and have buffer, you got of for of, there I'm to production, where opportunity just specific an you diverse sense? -- full product effect. get

Darcy Davenport

It makes product it efficient. let -- to shipping right. this is And But go, I basically perfect not mean it Paul on. wherever you're we we're low time of during start, I'll I'll inventory, and which add is we're wherever needs are sense. period when to on

doing inventory. then until that And continue our of build several back going And quarters we benefit we that. we once will so to the -- and up do, we're for see

towards obviously, -- if -- you is think this that betting, kind So end 'XX. were all of the if I to of But dynamic. we're see going I we'd

Paul Rode

Yes, in numbers, do rate inefficiencies what Chris, especially in we QX. we you're correct. mean our some, have call I

flexibility it As gives wherever point, then always optimize be freight. needs are we to us even hard ship working not go, optimal we to to going Darcy's the product And to as it expand cost. that's most network, and more to our

Operator

Gajrawala, the is Credit from question next our come And going to Suisse. line of Kaumil

Kaumil Gajrawala

is The first spend on investment in marketing. one

in investment has wellness have obviously, taken changed wouldn't powders. of off, a Now or deployment Has couple been your part really plan that this your the of particularly, plan strategies? capital years this ago,

Darcy Davenport

powders, Yes. On absolutely.

we and So we of, great kind those powder after and Premier am And figured brands excited Dymatize what businesses. we've are -- our tailwinds businesses, think portfolio that out see -- on, -- is and I and consumers. about What both seen distinct powder it's X I drives we that is, have have our X both they Protein. go

upside. of ton a have We

tremendous is on, powders. opportunity, there especially mainstream I think kind of,

meaning back kind of you to that Premier mainstreaming what -- of If RTDs did and category. the at look

in same everyday coming track is category. change powders powders. it. I to a now as is sports, channels in that size that's in We're big which think really see I the the starting mentioned

absolutely, So planning powders. on supporting we're

than into our We was -- inventories powder, because capacity year. of, supporting our seen next on to did But did build it that our we're outsized are powder, We so to we higher once going we -- kind be our we do again. strongly we've up demand need demand for up, build dip some, inventory.

Kaumil Gajrawala

mentioned remarks given on liquidity question, a ask first looking maybe, well M&A, transaction transaction, question as is, categories? as Is to in linked you're the maybe list, your relates Post something If it priority ways some I you to now strategic. your how as at prepared higher that's which could in and the that the

Darcy Davenport

the we're our, biggest We in M&A. on me you've changed the this I think growth general by many has focused Nothing I brands. -- way, still still that's times, on view organic opportunity. of of, believe heard our kind our say the -- mean

looking However, from there at what's an are M&A perspective. we constantly out

advantage more those take even this opportunities, driving that's of but not definitely to the so readies factor. And us

Operator

come our Securities. next question Bill the of with Chappell And line will from Truist

Bill Chappell

I end fully the something weight get studies pandemic But on that the shakes like -- maybe there reason seeing -- the and wellness if -- didn't that and why stepping And I at Because if feeling something Darcy, But bars, I and tipped? of, were sustainable, further. was it know if shakes in all health and your the of, did and would going now work factors. would seems of various we kind that your go, know you you're even healthy up outperforming or in forms to and drive kind losing back seem, pickup certainly the are really, that. within what findings didn't that see was the versus like it some it. were

Darcy Davenport

have, and they the bars first. have over categories I subcategories you that the bars, of X So or shakes were think powders, degree mainstreamed, mainstreamed form: -- and if time, definitely mean, bars those have

mainstreamed, So when or food. a XX%. have bars become of say and about bars -- The really more household is I of penetration snack XX%

to I both already would is snack, it healthier gone so a of mean, it still it's haven't household at penetration snack, about And shakes shakes say whereas but that powders more and a of degree. -- gone has there XX%. I really from,

I to where you could are. So double if get mean, to it bars think, just

household powders So I is pen and even a do then from lower -- believe standpoint.

mean, I the the minerals, of vitamin I standpoint, health purchase levels from #X of, protein consumers and we of, to immunity think higher when protein is blend. there, a it's second is everything shakes, nutritional and ask and vitamin why, kind of, kind they to our from from, minerals. so proactive association more there vitamins an mineral claims and

So more powders, I around just, shakes there both bars. halo think of of more snacking a that, where a I health is halo and there's think around

Bill Chappell

But months, nothing has those coming X, it's really have out it. Got manifested? of kind changed the over X kind just, past of,

Darcy Davenport

anything success don't I not has health -- enter product people their people the the is changed mean, I standpoint. Yes, What weight. management want reason around the I focus why just to in around we delivery and wellness the losing and also, and Protein and lose mean, focus It's get Premier big intensity think think from -- to the has and I changed people weight. those -- the brands all going category time weight using they but about stories is

Bill Chappell

it. further -- one of but then forward, channels it a is space? growth of you're a further channel. guess have into I SKUs, to growth season the still seeing maturation you that of most CPG of channel. forward? the SKUs -- Got have just on now question Xx further a I a number would looking expanding come And come going you've there that mean shelf here? a where even in I will club club of company channel, from Or are mean through we the strong some normal possibility Is just velocity starting non-club and there. probably see

Darcy Davenport

traffic and it's just club just mean, the a off and velocities lot our expect our even I'm more the people in incredible, charts, mean channel traffic is kind I don't do right club household -- that channel, think And club numbers a just a it is around the lot more channel impressive. -- growth. with getting the and now. I Yes. from of, I really really the get I there's penetration are of but to us distribution pleased traffic. their really -- upside leveraging

just standpoint club traffic, I as lot a the we'll a that of our as well be household upside from leveraging penetration on channel. in So there's increased brand think their

Operator

next Our will Bryan line America. the from of Bank of come question Spillane with

Bryan Spillane

equipment. this about get One sounded So think Darcy, I a was been about of is on delayed? mentioned companies more just something expansion it from question issues getting ask a a wanted other like, you to bit having items. just, and already just little the prepared project capacity color couple your remarks, that's a I

guess did delayed this the I when first my start? So is been question just, it already that's first question. is Has

Darcy Davenport

yes. So

say would I guess. So I it a is problem, twofold

I So first about was talked that. outsized which the demand,

that you lines, our second lines we our we see to capacity, were when get There The in. co-manufacturers. only think existing our flex -- new expecting were to was flex to X about approximately -- that to -- was X on come relying came capacity, in

to only got co-man So next put our X into network, delayed got X year.

that was I what about. is So talking

if we'd those think in, a think situation. that different came I be that lines I in

I business to are want super and work their co-mans be commitments. amazing, throughout support done clear, they us just extraordinary delivered pandemic. have on to And this our However, our for they've

but I positive have co-man. our nothing about So to say

Bryan Spillane

all project? issue get lumber sense just in I'm a up in difficulty to had like percentage terms be that the what Yes. of of No, possibility be I And been up running think the equipment know just, have labor where year to for just been to like lines further done those Like time with has are it'd experiences of next stones delays? the from is Just, great I there there appreciate a that. projects completed. is needs and trying I -- already buying of line and getting Is patio we've delivered? running? for get what a to Or we delayed. and risk delay. in lines everything transit to being the what's further

Darcy Davenport

one co-man. not really not it's and it's one And project, Yes.

adding we, we're And and co-man partners. are -- basically in I it's So we capacity when mean adding say with every partnership quarter. are -- -- we I our

was run they because have labor. sits sits line so to of idle. they enough capacity, have told don't of every to they labor the labor our and X of some it adding -- have run lines don't was they're situation is The CEO the weekend, by that idle one One partners it. I So one

So that example. just gives you an

-- labor. the capacity talent the It's And labor. is about training, these in in So high-talent getting situation, right enough there there. that are just

That are on are way. bringing its be them lead other we situations And well where the so we're that waiting the more being gotten in. long there equipment and There And then ones different training -- already are installed. it's -- them delivered. to where that and equipment about for is we've are it's

say our been lines conservative that So are in in I there projections. would we have have time various we factored and

Operator

question our from come going Dickerson of to is Jefferies. the line next And Rob with

Rob Dickerson

Darcy, of, just, you again. of, the potentially or ahead you in years Just, But, kind differs a relative around situation. like the kind that general you’ve the assumption question it just category hopefully sounds obviously, is how ago. capacity, X it growth to far are of for this only where was My category? stuck likely into company is not it

you more are of, a quickly market you? in So as I that as be able guess, do your than increased you competition, get in demand this fill just, question your capacity situation to the feel in others straddled such like throughout build meet similar be might others category a demand, actual that direct share you not out because through to look kind should was

Darcy Davenport

Yes, we are not alone.

aseptic the network So processing constrained. is entire

have if to amazing until is the to some this capacity more be already catches increase take -- up it's contractually be going difficult. they to, get going anyone it's going network demand. So committed than trying time of It's to to to

Rob Dickerson

to continue there to look know saying in thinking heard for you're at allocation you, question that here M&A. around distribution what then from number sounds as kind on rate pipeline. you'll a reset leverage similar from Okay. business, be Darcy of, keep Post that the earlier but release, then it leverage leverage asking when the just a morning like going of IPO. Paul. BellRing, I through same would actually in this Post, more special and at implied public? dividend, mechanically saw it just call the And I there. you on had coming clarify, the of out the question is Fair But way, one put pay is to would then a And just other about special the secondly, think is people what I enough. was capital be to And and, of, went ratio that sounds like just kind dividend you're cash the this. is, you that

So a given sounds to kind of be capacity like further near-term and the indirectly, event, that fair special especially dividend. wouldn't be the it'd acquisitions assume it constraints

Paul Rode

Yes.

leverage Rob, did the morning, this to So the timeline. we was similar that touch on IPO

a near business we're was is tremendous as So and generates But we fast-growing Xx. Xx. that cash It de-lever a company, just below quickly. that range flow, very

expectation M&A so a while at point challenging de-lever a may right M&A. that you related as large be seek And we level, our so but be leverage strategy to don't impact it a little that time, can our may at would more transaction an be, in quickly we to near-term see

Rob Dickerson

relative can actually let’s you to benefit quickly, And prepared it right, a supply if of say, Fair speak then Darcy, potentially lot co-man lot sure Okay. I'm of side a in-house? heard companies, volumes. upside, just just with then enough. not chain I about how, that And you margin getting you're the other a others in have the remarks, having talk on just there's

might a if the goes it lot a lot But get might You're normalized, a co-man, they with more they environments the down, margin. of that's usually by actually absorbed upside actually and pressure those -- commodity co-manufacturers. little put bit

help just not that just, could So that going if touch how may forward? kind of, or I'm and may on you curious you

Darcy Davenport

one. let Paul, Hey, I'm this going tackle you to

Paul Rode

your not it. Yes. tracked around could I your restate Is question? I'm sure fully you -- question maybe

Rob Dickerson

to the manufacturing. a if internally would of that have had you right, some absorb you co-manufacturers sometimes just costs, full in-house absorb It's

right, So not that's if that. I'm trying sure to get color on

Paul Rode

for others Yes, what I can't do. speak

of the control the we perspective, major our from think buys commodities. I

And scale best of There try can, have we're some advantages where that our we believe we co-mans So how then advantages speak our that. proteins and -- leverage the things with buy that buying are get proteins. smaller they of to because that we buy those that's our the leverage, can't But for where cost as, ends. we're on that others then to work to optimizing we how we -- cost. on see that's of, so I as advantages have both kind competitive

Operator

Zaslow our the And come Bank of line Ken question will Montreal. of from final with

Ken Zaslow

look that of, the price able the called at towards and that who, actually there's pricing is seems have? just doing than increases you like and option, kind your low the there's bit other companies rather it increases. elasticity Would little more given We've through you an frequent be low inflation. the companies price making to transition seen a when consider findings, elasticity elasticity that If fairly it confectionery as changes, you

Darcy Davenport

I mean we would.

are we still think now, I brand. for -- a looking growth we are

to early we trying from a that innings of sort of, a in of growth. standpoint. We upside are, the still have household penetration expand. brand We Premier believe ton are Protein We the

We have to market this share people of excited category and We're have more upside liquid use brand. from category a ton standpoint. the and a our grow

think be can. would that grow would because we not, just reason wanting we I are why still we the to as So as fast

we at increase some I those if see are costs, looking et point. as at part rising always cliff -- a evaluation we're of Now our there cetera. is mean,

we're watching middle seeing raise didn't of probably the because it the brought have it retailers until it see it. price until many seeing our we aren't be closely. the not of but competitors We But we're -- now, and didn't going other to it quarter. Also, of

Ken Zaslow

purchase? My from what it purchases, better and forward? Okay. going your those do to you to you do something on leave repeat repeat is what learn findings there. was question I'll second what And attribute can

Darcy Davenport

Yes.

and for that's X has the last repeat over stayed XX%, years. Our rate

of how rates mean our mean you our category. business really to from now, changed. doubled is think we've has top it's household repeat penetration, much about the XX%, one yet I which but has I the repeat -- in above stayed So XXXX

to an amazing the is just a that mean absolutely product we important. track around think and brand that love. really I So it's testament one metrics consumers of I love, that's

our And so kind of, as immunity. that look and to lot product to surprising points. that's improvements we make want of well all as new improvement from the expanding. sure across always includes kind to on we around different, It's of touch delighting we consumers with different and -- flavors It shake, kinds everything our our a to going are, look of, --

to is I high we'll as goal our do And track based that. possible. that that think think on keep the record, as I So

Operator

Brands that, with appreciate Earnings today's please your you Call. Conference we Quarter you. We participation And and disconnect. conclude you. that ask X Thank XXXX will Thank BellRing do

BellRing Brands (BRBR) 6 Aug 212021 Q3 Earnings call transcript