“So I'm not sure you will continue seeing the type of gross profit dollar expansion and gross margin that you saw in Q1 into the second half because the cocoa prices will hit a little bit harder particularly in Q4.”

In context

“it of about the gross margin. I thought coming into this year, you actually expected the gross margin to start out slower in the first quarter and actually sort of improved year-over-year as we went into the year. It seems like we're setting up for a different, maybe an opposite, dynamic. So maybe you could just expand on what drove the gross margin higher this quarter and then how you expect the cadence of gross margin to evolve over the course of the year. Luca Zaramella: Yes. So as I said, both in the prepared remarks and in my first answer to Ken's question, we are very happy with the level of pricing we have taken so far. And so we are absolutely on plan. On the cost side, I commented about the fact that the cocoa price escalation will be more visible in the second part of the year. So I'm not sure you will continue seeing the type of gross profit dollar expansion and gross margin that you saw in Q1 into the second half because the cocoa prices will hit a little bit harder particularly in Q4. So I wouldn't read too much into that. I think the way you have to think about it is, are we happy with expanding gross profit dollars almost 12%? Absolutely. Are we happy with the reported dollar gross profit that we see? Absolutely. We are pricing in a very disciplined manner around the world. We are doing RGMs. So that is bearing its fruit. But you're going to see some compression, particularly in Q4. So don't expect like 2.5 points of gross profit expansion from now to the end of the year for sure. Stephen Robert Powers: Yes. Okay. Very good. And actually, Dirk, if I could build on your comments just a minute ago on Europe. I'm curious, I mean, understanding that the retail negotiations have gone maybe a little bit better than you had originally assumed, but it seems like demand, as”