“The smokeable segment will continue to benefit from those lower SG&A costs as the year progresses.”

In context

“ro and to your point, the strong price realization we experienced in the quarter. Matthew Smith: And my second question, R&D spending is shifting to the all other segments. The impact from that shift, did that seem meaningful in the first quarter, given the unique higher costs in smokeable? Can you talk about the phasing of that R&D shift through 2024? Should we think of the smokable profitability growth weighted to the second half in addition to the overall company EPS growth weighted to the second half? Salvatore Mancuso: Matt, we don't -- as you know, we don't guide at the segment level, but you are correct in that you are seeing a shift in R&D spending towards the innovative products, and that's part of the SG&A benefit I talked about within the smokable segment earlier with Bonnie. The smokeable segment will continue to benefit from those lower SG&A costs as the year progresses. Operator: And our next question will come from Gaurav Jain with Barclays. Gaurav Jain: Two questions from me. So one is on retail pricing. I think you are saying in Q1, it is [ 347 ]. And in Q4, it was [ 377 ]. So have you stepped up promotions on on! to stem the share loss that you have seen in oral nicotine pouches? William Gifford: I wouldn't say stepped up for any purposes from a share standpoint. Really, what we -- you see happening, Gaurav, you see that the data that we have, I mentioned the investments in advanced analytics, being able to bring that from both moist smokeless tobacco and the smokeable segment over to the nicotine pouch segment. And so you're going to have pulse promotions through time. The real goal there is to keep the converted consumer engaged with the brand”