“Though we see the elasticities be more favorable than historical norms to date, we continue our assumption that they return to historical elasticities going forward.”

In context

“nsumers are going to use less so as volume comes in, trade down so mix comes in? Or maybe we lap some pricing and bring some more promotions back so pricing comes in? Which of those 3 components do you expect to be the bigger driver of category to sell? Andre Schulten : The -- it's a combination of what you described. As we said, pricing generally comes with a level of elasticity. Consumers don't leave the category, but they might look at their dosing behaviors. They might look a little bit closer at their inventories and draw that down over a period of time, specifically as they are more exposed to inflation broadly in the marketplace with the highest inflation in 40 years, it'd be naive to assume the consumer is not looking at their cash outlay and their spending even in our categories. Though we see the elasticities be more favorable than historical norms to date, we continue our assumption that they return to historical elasticities going forward. We hope that's not the case, but our assumption is that, that returns to what we've seen in the past. The other element I would point to is just normalization of consumption patterns. As we saw very elevated consumption growth over the last two years, some of that will, at a total market level probably return to more normal levels. Our job within that is for our brands and our categories to drive the household penetration opportunities, which we have. They are huge even in the most developed markets, even in the most developed categories, and that's what we're going to focus on. Operator: We'll go to our next question from Kevin Grundy with Jefferies. Kevin Grundy: My question is on potential implications from the fallout with Walmart and your bigger retailers more broadly feeling margin”