Earnings call transcript Q3 2022

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Operator

Good day, and welcome to the MGP Ingredients Third Quarter 2022 Financial Results. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions and please note that this event is being recorded.

I would now like to turn the conference over to Mike Houston with Investor Relations. Please go ahead, sir.

Mike Houston

you. Thank with Relations Houston MGP's Lambert, Mike firm. Investor I'm and members management Chief team, joining of Officer; me Dave their are today Finance President Vice and And including of Colo, Brandon Gall, Financial Chief Officer. and Executive President

prepared the call open questions. management's to and then We will with remarks, begin call the up

margin call rate call, of forward-looking certain statements and well as projections begin However, my on and to involve before today's the we tax inform trend. industry Company's objectives may responsibility operating and income, as statements of gross sales, is consumer as business it you effective that this plans overall and such the

described The forward-looking quarterly Commission. today Company's a to including The the number filed materially from results factors most update obligation any differ factors, with during Exchange call. due the annual recent made any in forward-looking reports Securities Company's and to Company could statements and of no the made risk statements assumes actual the

reference measures, Additionally, will certain evaluating Company's performance. which useful are this in contain we believe the call to non-GAAP

have If the A can does to MGP access the directly are Company's measures www.mgpingredients.com. SEC GAAP the furnished earnings website, the Form you supplemental in reconciliation press today's under release X-K. measures issued comparable included release already to of most not and these a today, of copy information anyone by it at

like Officer, I turn call MGP's the would time, to Dave? Colo. Dave Executive At and this Chief over to President

Dave Colo

XX, for end updates we against Thank key this with overview call, for and strategy. an have and metrics ended will the performance open the you, everyone, begin we progress XXXX, At will our Q&A. line the on On call, of the we Mike, provide thanks, the made performance today. September the of joining financial discuss for our call quarter

increased the another segments. momentum XX.X% income the each sales of increased sales. to favorable to profit X% representing for our operating we team while million, million. experience business of Our to strong Consolidated to $XXX.X Reported that XX% from third gross $XX.X trends performance quarter during X% as continue million, quarter consumer support increased $XX.X delivered

to continue this our demand distillate trends overall Solutions from benefit growth to favorable and we In new support whiskey. aged segment, These for Distilling for segment. continue strong

to For Spirits premium demand premium, solid segment, consumer Branded spirits our premium we brands. plus continue in and experience which our trends ultra-premium super includes brands,

Our offerings continue plus to the and premium margin as growth line well for segment. expansion whiskey tequila of drivers primary as be the American top gross

high done to our in As quarter. for in Solutions an foods a The team to the from These record continued the mix plant-based sales the segment efforts at product contributed Ingredient our exceptional has adding behavior segment, toward in job execute level. diet. benefit consumer third optimizing shift team their continues to

sales as We achieved or our Gross for segment. greater detail. decreased segment Distilling each million at of record $XX.X the third $XXX.X The Looking million. of and the to expectations increased our quarter. well primarily in offerings. in commodity our gross for the These consistent natural were excess profit costs gas for supply negative sales. Sales Solutions in from within profit industrial as be and quarter million segment impact goods a to attributed factors $XX markets XX% decline XX.X% the with can increased quarter to white

sales. versus sales our of to to sales aged higher growth whiskey XX% new Demand Sales each the increased from customer alcohol categories brown within remained distillate strong XX%, and from XXXX. year We the brown of consumer beverage the balance through into trends whiskey the our remain further American the prior meaningful favorable last goods year. and premium confident of We while category. goods believe increased will contributed share, year advantage ongoing demand inventory and scale significant our whiskey will position that and these aging for remain due support

Moving lower Sales volumes. decline beverage to Sales for X% XX%, also primarily white due prior lower products volumes of due versus decreased products. goods the The our to white quarter. goods. was to premium our decreased year industrial alcohol

supply and historical With as industrial well increased continue input the market margins impact that for believe costs, entered remain the has gas costs, primarily at will natural as goods white of that to or the additional and alcohol we both corn below products levels.

of quarter, goods industrial white as dynamics. result alcohol margins and a these During incurred gross negative the

well. We expect the continue quarter these to fourth headwinds into as

see point basis gross to combined decline XXXX. goods expected year-over-year industrial in basis we on for in an white Previously, X,XXX our a margin percent products approximate and alcohol

this total year-over-year believe $X now points million, year we we last contemplates of which $XX these basis for X,XXX inflationary dynamics, what quarter. and million guidance, to the market than year full these I more increases and committed through where full commodity remain impact comments, in pricing decline could these estimated our which approach discuss That a said, Given possible, we headwinds. for my will consolidated closing is industry

plus segment the well grew sales record Spirits. X% which improved the higher can case distribution reflecting segment Branded average primarily XX% prior We period, Moving for $XX.X segment. brands selling prior by period record Spirits pricing a increase increased of profit strength sustained year and to both and of $XX.X was our product for our million the quarter gross Segment acquisition, Since premium to quarter Gross revenue a in higher third dollars Branded premium plus brands, attributed brands year from for profit sales. increased The our be the million. sales to this versus as Luxco prices. as on mix. for increased volume or to benefited this XX.X% and from

invest that our growth successfully spirit support profitable and focus tiers. in marketing sustainable premiumization achieve and executing on and remain to to we'll we categories committed to are continue strategy, growing continue amongst We as positioned to price brands

last We April. margin transaction expansion the Luxco premium and line since we continue to closing for top have our encouraged by the be growth brands plus achieved

to the increase primarily the selling prices performance, volumes. recent average was the Ingredient sales by Consistent Solutions. higher in Sales a XX% to with $XX.X driven Turning quarter increased segment's increased million. and for record

a execute level, continued the our needs. enable we products R&D at segment. our sales, will for to continue long-term experienced momentum the with teams across specific high Our believe growth sustainable have meet We realized innovation to collaborating and customers

initial channel. also ready-to-use orders colleges begun launched proteins to for have targeted of We universities pea-based and receive texturized foodservice brand from our against recently the ProTerra

achieve build team their have and meet momentum Before thank I I the turn generated quarter. the ability consumer of for third continued we product to Brandon, results to for the enabled trends throughout on to the the call our execution. alignment want over to offerings continued to Their our strong year us

initial my concludes This remarks.

over metrics turn for me and things Gall Brandon? of now review Let Brandon a to the numbers. key

Brandon Gall

Thanks, Dave.

result XXXX, of quarter business of to third across representing the sales. $XXX.X all three as record to million XX% increased Gross For a quarter segments. million, profit XX.X% increased sales consolidated sales $XX.X X%

for investments our Advertising to tier reflects premium $X.X our This to quarter Spirits XXXX Branded of part as quarter premiumization or and segment. increased of million the expenses strategy, $X.X continued XXXX. compared as promotion price products million within plus third primarily the increase of marketing XX% the third in

moment, quarter. look quarter this as we and of quarter Our And a we investment continue any on last here the to increase share merger. in A&P call to discussed as the highest the was Dave fourth our will since the spend during

the $XXX,XXX XXXX. did lower acquisition $XX.X to expenses the quarter and general primarily not million the recur administrative related that XXXX to of decreased quarter due cost compensation to expense in onetime third XXXX selling, third the compared and for acquisition incentive as Corporate XXXX, to in Luxco

increased was acquisition and the quarter costs. previously third the X% the million, which year due gross prior for from in operating for million income increased profit X% reduction Adjusted SG&A. primarily aforementioned to income period, the $XX.X Operating to in adjusted increase $XX.X in mentioned

tax Our spend. while effective adjusted income was XXXX for third income benefits year the period was XX.X% $XX.X the of attributed of period. year million, net from decrease decreased for $XX.X with to tax rate corporate concerning ago capital our to XXXX million. decreased the slightly compared The ago XX.X% from Net from quarter quarter the X% third favorable

share Adjusted to per year compared period, third share per For share XXXX decreased per per basic $X.XX EPS share. ago $X.XX EPS share. $X.XX from decreased to $X.XX $X.XX the Adjusted $X.XX earnings share. million, the per per EBITDA from $X.XX per to ago a X% from per basic $X.XX common per increase of quarter share. from Adjusted share share for from year decreased the and $XX.X was diluted EPS period. to to Diluted decreased quarter the

and Corn, gas three our commodity each continued gas are largest Relative throughout increased for elevated expenses to wheat year and quarter, flour to the increased experience the and XX%, corn increased XX% prior input quarter. prices wheat cost flour natural XX%. natural our

was not cost, discussed to opening price industrial selling average comments. alcohol for the increased the it his and higher white as Although goods the quarter, offset for Dave in input enough

of Year-to-date cash cash totaled capability our reflecting $XX.X million, highlight flow our projects. MGP cash-generating of operations M&A expansionary from providing with business. and long-term strong consistent adequate execution value Strong flows the for support strategy, and the further and

strong, also million. well $XXX.X with to allowing grow. continue to debt and us remains capitalized position balance to $XX.X sheet cash a of remain million MGP's invest totaling We strong

projects and million $XX.X expenditures expansionary this total a our and in cost Additionally, we on timing track from project announced continue year. remain to previously capital perspective,

underlying view of X a amount November per on record The share, of which Board continues of to important to is the $X.XX the share to organic dividends well leverage. as with quarterly as way an December is The success strategy the dividend in growth believe as the payable Board XX. of strategy capital trends as authorized stockholders aligns focused to allocation Company and on our long-term We acquisitive shareholders. our the well well positioned business with consumer

to our expansionary pursue capabilities increase conduct product to projects and and offerings. accelerate continue will We and growth M&A

turn me to things And Dave now over concluding let remarks. back for

Dave Colo

Thanks, Brandon.

commodity mitigate the very costs. we products our and year-to-date pleased positioned with the through challenges strong, year. increased balance our despite the continues strong be well Demand believe these are remain to energy and of delivered to results for We business

investment While to we support continued and growth further expect within Branded the our advertising brands. plus spirits continue we to segment, increased in tier premiumization strategy Spirits premium in promotion our

persist anticipate to natural the for in commodity pressures of costs and inflationary We the balance year. gas also

Taking these for the fiscal in are year with December revising XXXX. strength outlook our upward factors we the financial underlying and combination the account again into of XX, ended business,

in common be range sales to XXXX to million the to per million earnings increased year per $XXX Our to $XXX adjusted adjusted million for fiscal guidance following: range to range $XXX $X.XX share. basic full million, of of the $X.XX in be the in the and share assumes $XXX projected EBITDA the of

of growth. strategy macro will each consumer drive our that trends, business aligned that sustainable segments we believe and continue confident remains are to with We our strong long-term

ESG on make our continue initiatives. progress to We

information. waste Then first you sustainability we the and gas during quarter, energy recall, policy and our second environmental As statement quarter, during on may our disclosures our management disclosed began and providing the we began greenhouse emissions. disclosing

We water on This quarter, calendar be These began our information. early Social year website to report release section. disclosing we our company found management environmental for in XXXX. Responsibilities under plan sustainability XXXX the our can disclosures

against continue the to the as value strong we deliver leverage to shareholders. long-term our have established we foundation sustainable We strategy objective long-term will with execute for our

of we That remarks. Operator, ready begin portion the call. concludes prepared to are our the question-and-answer

Operator

Instructions] [Operator today with come Fargo. first Torrente will Wells our And from question Marc

Marc Torrente

about First, contributes margins can to commented into additional by this that and In profit. branded margins. some and Any improved then spirits, mix. about the on updated here gross detail on maybe color how maybe forward? segment driven And specifically nicely Could how going puts QX? mix and I you provide appears to contribute wanted on past, ask you've this increased takes

Brandon Gall

side, may a was Yes. gross in But the quarter I that any is I'll on that the record then this strategy. Dave the go in XX.X%. And for gross for was margin let our part about the spirits of profit It first, miss. since the branded last as segment on we overall dollar of I'll April fill X blanks and look quarter forward year. merger business,

categories to be And last in higher-priced, So of continue that segment. that improvement premium on-trend are going plus the are brands drive the to those performance sales year. in in QX over in up going it's the higher-margin performance XX% quarter this were to in

back far line and to the for opening part mentioned first the anticipate company, year. A&P As spend question, as But consolidated QX note, the we his of basis remarks, in one your on overall do expect overall a company. gross higher of to the be this Dave we the with thing in is to over margins half

Marc Torrente

last trend Okay. momentum, month over visibility strong or trends secondly, or you're any end -- quarter. seeing Great. wondering on behavior the consumer on side market? in where within if And the demand the in branded on then, change were have you've so, the spirits, seen I'm spirit greater you perhaps

Dave Colo

Yes.

continue premium trade brands. XX% we to into value reflected think, And plus mid plus that again, see growth really seen for in plus from brands. We brands -- or premium strong demand we I in in And premium was our any date, down to haven't tier quarter. in the revenue

this asked get lot. we question So a

I well luxury. common plus answer we an and as think that brands viewed believe as are a affordable one premium is that in really

purchase think frequency I some relative consumer relatively premium on the plus these of food example, infrequent. items, versus of a an basis as brands is

that I spirits a think for consumer seen the year. on the annual is the estimates around spend -- we've average $XXX

brands. buy continuing frequency what I factor and getting they're you that premium what buying, plus to the to spirit is people if value for in purchase think So is the consumer these the contributes

Marc Torrente

side. on to a ahead this of easing relates to you to dynamic it And then lastly, as just, the capacity any seen ability your on change the sequential Okay. selling Have industry here, market? supply

Dave Colo

Yes.

Marc, the think the industry, the supply see change haven't a we strong dynamics we demand profiles, And pretty both really tight side there, and distillate quarter. significant previous from against whiskey. seen both very I remain And aged new to continue aged as as in well new products. distillate for

Operator

And Wedbush with come question Securities. our Gerald will Pascarelli next from

Gerald Pascarelli

Mine branded is spirits. on

priority pretty clear round on for the M&A segment been within this out You've portfolio. your further to

tequila you fill faster cocktail It represent stands and the growth. any just portfolio it within like or white exposure talk the that gaps as RTD time Bourbon So all for today, even about margin? a of can priority seems on to incremental are to opportunities space over kind current revenue

thoughts So just would love your there.

Dave Colo

that think we I portfolio Yes, today. Yes. have we our whiskey like American

focus area of However, be brands. additional definitely American an would whiskey

category, interested like also tequila brands. We we're in definitely additional that's a tequila our portfolio. so But high-growth

category. that category It's is small but emerging a growth Another like Mezcal. we high

there also in our presence have well. like spirits And we interest as to have we business. So international more would a

Luxco internationally. opportunities would be for kind acquisition opportunity. see a the full looking always But are a of those the transaction. acquisition areas we company we're So platform a Ideally, of primary to it or some where similar

Operator

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

Bill Chappell

new demand that on thought there's I questions. of second of brown of orders distillate or seen first, from few the for half? post-pandemic, A spirits kind customers guess, the in you any in kind a have pullback slowdown your

Dave Colo

And both remains to We're for continue strong. we Bill, well as No, is commented, I previously haven't. distillate we on really as pretty -- new very distillate see strong capacity aged. new as demand tight demand and

first So the we the back haven't half experienced there of into of the any half weakness year here. the from year

Bill Chappell

the I I have amount you of know distillate. then And on a obviously aged mean, aged, sizable

whether to future into tougher the customers those to come did these make or every largely would are had -- you I next by business months? whether of -- decisions, it possibly you to it monetize the and over lose works some do as half made second decisions Is or You idea kind that we you're you years? going think, granting for it not of lose been you're few of in hold leave going a better order few kind taken how have of so next And years.

Dave Colo

Yes.

distillate year We and have I'd we've both for new from aged we is our sell of what in ever both guidance to and Bill. we plan now a the much spoke visibility our distillate just -- aged to, And better had balance history. our new probably to than in demand that the perspective the say reflected

years. if we And in we inventory it to we sense could make the because wanted but future year, protect retain we sell this need -- the as we've growth to before, to more doesn't discussed

we're exactly doing. that's what So

As is part process, than there's supply. demand that there more of

in rationalize We year brown feel finish customers. have next had we we our to like of and this But year great some we're a in into business. goods as position our head

Bill Chappell

you with of the mean, share areas? you growth have Okay. you will more growing category us popular I And segments X% color share there, it's up premium areas? growing kind have more of of Any to with brands? you that priced, us helpful. on can because priced. whether have you kind side, you tougher the certain have on branded category white the the give then goods X%, you you're for brown, or in losing color? Are keeping certain your gaining be little in Are Are a you in understand

Dave Colo

Yes.

where brands industry growth I perspective like those in think, was that's from majority premium followed And investing we'd and that we is. heavily where a a we focus. really of overall in the brands. as the plus plus that's categories. Premium price QX premium tequila And whiskey reason, And call, the you A&P area couple the growth brands in focus because is others American the an in are XX% QX. for are in growth That's that XX% brands tiers. brands Bill, on well in, of That of positioned. what the That's as XX%. for our grew to that plus where we're

stated As plus for categories for in are we ourselves, industry the spirits past, growth declining, premium and the mid is only the of because majority the not the in value as sector. but a have the whole

is. where for expansion attention, or our also focus our drives spirits So business. put that's what that's -- where we spirits branded margin and our our That's

Bill Chappell

for me. Got it. And one then last

in -- pricing alcohol, of this think business, time and contracts kind it's next and on for Just you're the industrial where year locking know capacity. a is I the year I smaller but of

there a are white But different the to -- starts shore animal se? Or as se. way next going So of to is continue to I -- understand per ease kind as would expect we that per margins glut expect look to you decline you up alcoholic of would a kind year? goods into

Dave Colo

situation the think COVID, to added as into the There change going don't year. supply capacity result oversupply is was for we -- year I of the and go demand lot finish as a this a alcohol. any, of Bill, industrial next Yes.

oversupply we I the it a So that's how long-term is dynamic, view today. think least at

really relief we I any into year. as see next So don't go

play of change early going experiencing contracting stages market far next year. the next that's overall, dynamics too in what I both a are GNS to as We see But as early and significant industrial to the it's how really tell in we're for but don't year, versus this year out.

a be to continue to going it's think pretty category. tough I

Bill Chappell

I But really Or away at second? it you're capacity guess profitability trying it. is from somewhat Got and just looking walk filling I you -- to could business? was first then

Dave Colo

Yes.

we I as side have industrial what volume think to that GNS of gray think on alcohol, pretty because away on that and is job we've is done years. the much done retention it to good shift few last we is industrial. the and profitability tried customers better a the the over from of We've neutral our spirits than of

of ago, And of couple GNS. about GNS XX% it's combined in industrial a I revenue and think was years today, our XX%. between about

done we've will. a you good there if So shifting mix, job the

in business how we we But something minimize can environment, And volume, a to that's of on will weekly volume you much when like to -- impact this. basis will, we this in obviously if look P&L kind of literally the you're well. see a evaluate minimize as the

Operator

Lake will question come Markets. Ben And Klieve Capital our Street next from with

Ben Klieve

Congratulations on good quarter me. from Two another really questions here.

can kind in of end year expectations track, your wondering I'm revenue contributors is ongoing, comment can't which year. on be for the that you great everything that the taken this of by on and completion expansion the be will of if environment. you of initiatives those to degree is and First in timing facilities of for which are all, on the next granted terms Brandon, commented

Brandon Gall

Yes.

said I you track. on As projects are as earlier, all said and

million in spend CapEx are year. $XX.X targeting We this still

protein We 'XX. highlight a during did accelerate plant. second That's half the texture just going So online to the to come few. of

as be year. to QX, contribution toward going the ramped that a do we of the expect but it's we So QX, bit little get end up of

earlier in That Lux distillation a Kentucky the concluded quarter of an XXXX. won't fourth end third call, discussed ready There's we Kentucky We in that on an additional online 'XX. well. on targeting completed warehouse be the fermentation and in we're of Row. warehouse that the there expansion be as expansion now have should by We've until going the

Ben Klieve

Okay.

for get expansion. Great. queue I'll one ingredient back and the me other on on Okay. ProTerra side And the in

a pretty was You hiring to announced here recently I'm me. really of the really And space guys. share? kind you revenue see market the And you on veteran wondering foodservice really interesting your That couple foodservice yourself end foodservice years? for within new if can hiring kind a focus of can what exclusively become market contributor expectations for you a of elaborate this the gaining how next to over elements space of on of the material

Brandon Gall

Ben. Yes,

foodservice foodservice. a And channel do texturized we market. colleges ProTerra the I the we hired beyond think launched it a reason ready-to-use a huge opportunity kind within we is And universities think it think as line, initially but can we're reason hire. the is line. expand that new and product ProTerra also the But the we that for the targeting of person test protein. this product for It's was

about If this produce you you're $X over pounds texturized But a potential give the and that opportunities you selling that the that we of do in of million past of the shared a we're point, potential for around think think additional And to million should one at $X million feel that many that's we're protein if facility revenue I $XX product. can we business pretty is XX a the to that price product excited $XX brand. in building, foodservice it at look line, time. ProTerra

Ben Klieve

sounds good quarter. Very reason Excellent. like. congratulations it Got on with good Well, again, good you.

Operator

Partners. Capital will Sean with And our next question McGowan from come ROTH

Sean McGowan

follow margin more mix? to in some branded is improvement that say it you of up spirits. is driven primarily Or relative question margin first price comments your being cost? by Would a My on is

Brandon Gall

higher because our we in priced as goes end And continue categories. expect are product question. we Great driven that trend on, of to price sales the shifting begin But mix the as towards to higher plus with. our those in It's time average more as definitely Yes. those selling does volume increases, are the premium of portfolio our lines.

Sean McGowan

seeing let's those within, higher, it segments. you say, you changes ultra-premium, in still but within is a decline or going there? But flatness drive increase Right. you're an see could Or margin? of Mix also to seeing each are

Brandon Gall

Yes.

price average in all up seeing of are lines We premium going three those Yes. on product selling average. plus

Sean McGowan

And then are my there other any especially call you question brands out are branded that of that was, well? within spirits kind could doing

Dave Colo

whiskey brand Yes. category, We bourbons. our our doing -- in is our Yellowstone American brand Remus Bourbon extremely well, as of is

We also potential also in And our growth have Primos of as those some that off extensions we extremely have El of brands doing well brand Mayor both in new significant really our the believe future. tequila good and to continue innovation brands are very are as well. doing Dos tequila well, tequila, and

Operator

Vivien next come Azer Cowen. with our And question from will

Vivien Azer

from consistent Just management rate order increases last with Certainly we're your That's down up and In way, gap points? what encouraging also you the magnitude, the thinking your a hearing guys price spirits how it question. follow you on To portfolio? branded that of pricing competitors. are up price portfolio. your about are about you how between another are within thinking put getting

Dave Colo

Vivien. Yes,

competitive against. And the we experienced are our across set brands tiers. literally increases is we've average plus in at that think in our the manage the as of a premium gaps -- said, majority our have brands, by up our selling brand. We going way we price I certainly look Brandon price

that ranges it's to that is job and to within. give to want and their competitors. our We relevant competitive We make guidance our stay our sales then staying to that and pricing execute we sure particular have team,

a we And companies as lot pricing to are up, follow tend suit. taking mentioned, of as you

summary price gap and high-level a in that manage we how So pricing management. is

Vivien Azer

a That's subsegment, seeing does helpful. of love to that hear canned branded quite new as Okay. in to and be segment with ready-to-pour category spirits, threat. the growing it seem we which ready-to-drink are quickly. I'd perspective then And cocktail view whether on entrants and you sticking competitive your a lot

Dave Colo

same occurring the we see Yes, there, Vivien. growth

room any I in compete. if capacity. to an we sizes in have we We today not manner. grow area versus more without think the there's serving do individual products, significant for in in category that the you ready-to-drink categories cannibalization, in that the will, which larger compete It's but they're significant

spirits participate the far, watching ready-to-drink think there just do we category. -- And happens that over spirits But in seltzer So We're we've played see we seen in what to so threats any in what seen time. it regard. our business. haven't branded category. we'll But I out the significant

Operator

next Sturdivant Mitch our And from question Pinheiro will Company. with & come

Mitch Pinheiro

Most those been rate The that sort to you've infer one what does it asked. Or of distillate have of -- out do your your of on numbers? laid have barrel have moderating. of like my inventorying. that questions I you growth you down? been that is is Does sort of balance it hard infer anything

Dave Colo

objective goal years. away to with we've to of here, lay that pretty is inventory try as done last think, of we've I in We're continuing discussed whiskey. over needs. And projected I our the to our a past, our balance down the Mitch, our put good job Yes. think couple

that between laying occurs new down selling versus see the fluctuation I quarter-to-quarter distillates. distillate our new think what is you

to also the need we sequence sell. have down to So lay to we in what time sometimes

But away overall, we have this put increased our year.

I think in continue But to quarter. away. year-to-date, good to overall, we're $XX $XX or point. at increased fourth put close up in the think I away pretty in a million position put this million We'll we're

Mitch Pinheiro

your seeing mash need have? in and bills visibility come and what would you ago, in about the would very in past late things sort visibility and of you little you've long-term continued of -- And to I obviously, in a you or increase talked quarter with you the years give like mean, percent need contracts in -- lay What surprise had customers, it you that. are the down you and to to type

Dave Colo

last And short in the put Mitch, benefited think years to X.X answer down understanding to current away. also we've The tightness is the in from bills I And in Yes. and that to able to that yes. willingness customers' benefit supply the dynamics lay we've the and been so environment about -- more. and mash correct contract over or that, history the

more much distillate some aged had we've new business. our success So in and contracting success contracting volumes our in even

in distillate position around to relative capacity us have a decisions better put put that's So decisions away sales. better and decisions -- new make on on

Mitch Pinheiro

And is, the are what now? customers accepting seeing out are in with aged same new of I question -- you guess maxed for the Or sort theme are last you you whiskey? have you

Dave Colo

whiskey Well, uncontracted sales. we have spot always aged available for

that really aged just matching inventory customers' it's of a So matter pricing. with and needs

manage the on way ongoing that's basis. we an that of So kind

Operator

this question-and-answer like closing to back session. And conference will any our to turn I'd for Dave Colo conclude remarks. the over

Dave Colo

interest Thank company again in the our talking joining We fourth your you us look our for after to quarter you today with third earnings quarter. for call. forward and for

Operator

The concluded. presentation. for conference today's attending Thank has you now

may your lines disconnect time. You this at now

MGP Ingredients (MGPI) 3 Nov 222022 Q3 Earnings call transcript