“Yes, your first assumption is correct in the sense that we are trying to offset the dollar impact of the inflation that we're seeing on our input costs, and we're not pricing for percentage margin, but offsetting that dollar impact, which yes, we believe is a reasonable position.”

In context

“on comes from David Palmer with Evercore. David Palmer: Thanks. A couple of questions. On Europe and pricing, so often we talk about the retailer, customer, and the dynamic of getting through pricing there. I wonder, as are you taking pricing this year? Are you -- is your pricing strategy to offset the dollar impact that you're going to see from cocoa? Or -- it would seem like that would be a pretty reasonable expectation for the players there, given what's happening with cocoa. But maybe there's some timing issues for 2024 there to think about. And then how -- from what you've seen about -- from the consumer there, is the pricing -- price elasticity, they are much different than what you would see from what you see in your biscuits business in the U.S., for example? Dirk Van De Put: Yes. Yes, your first assumption is correct in the sense that we are trying to offset the dollar impact of the inflation that we're seeing on our input costs, and we're not pricing for percentage margin, but offsetting that dollar impact, which yes, we believe is a reasonable position. I think this year, seeing the situation in Europe and the fact that the retailers are seeing probably some deflation in other areas of their business, it is a little bit of an explanation to explain that not only cocoa, but also sugar or hazelnut are showing significant inflation, which is not the expectation. I think by now they understand that it has to happen in chocolate, so we have high hopes that we will be able to land that in a good way. As it relates to elasticity, I would say the elasticity in Europe has been very reasonable. We might maybe expect a little bit of an uptick as prices keep on going up for a third year in a row, particularly in chocolate. But there is very little or low down-trending within the category, because everybody will have to price. So it's a joint movemen”