Thank you and welcome to The Vita Coco Company Second Quarter 2022 Earnings Results Conference Call. Today's call is being recorded. With us are Mr. Michael Kirban, Executive Chairman, Martin Roper, Chief Executive Officer, and Kevin Benmoussa, Chief Financial Officer of The Vita Coco Company. By now, everyone should have access to the company's second quarter earnings release issued earlier today. This information is available on the investor relations section of The Vita Coco Company's website at investors.thevitacococompany.com. Also on the website, there is an accompanying presentation of our commercial and financial performance results. Certain comments made on this call include forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and beliefs concerning future events and are subject to several risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Please refer to today's press release and other filings with the SEC for a more detailed discussion of the risk factors that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Also, during the call, we will use some non-GAAP financial measures as we describe business performance. The SEC filings as well as the earnings press release and supplementary earnings presentation providing reconciliations of the non-GAAP financial measures for the most directly comparable GAAP measures are available on our website as well. With that, it is my pleasure to turn the call over to Mike Kirban, our Co-founder and Executive Chairman. Mike? Thanks, John. Good morning, everyone. Thank you for joining us today to discuss our second quarter 2022 financial results and full year guidance. I'll begin my remarks with a brief overview of our performance this quarter. I'll then reiterate our long-term growth strategy as we continue being a driving force in healthy beverages. Martin Roper, our CEO, will then discuss the details of our top-line growth drivers, including our recent and upcoming pricing initiatives, and will provide an update on the supply chain and cost environment. Kevin Benmoussa, our CFO, will provide a more detailed discussion on the second quarter results and our outlook for the year. I want to start by thanking all of our colleagues across the globe for their continued commitment to The Vita Coco Company and their dedication to our mission, creating ethical, sustainable, better-for-you beverages that uplift our communities and do right by our planet. The second quarter punctuates a strong first half of the year and reinforces that our strategy and commercial execution are working. Net sales grew 13% year-over-year to $115 million, with our flagship Vita Coco coconut water brand remaining the main driver of growth, increasing 21% over the year-ago period. The coconut water category remains healthy, increasing at a 12% pace in IRI measured channels for the last 52 weeks, while Vita Coco grew 29% over the same period. We're pleased that Vita Coco Coconut Water remains the primary driver of retail category expansion, and the brand continues to gain incremental share of the category. Today, we enjoy undisputed category leadership with 51% value share, which is up 7% from a year ago, according to IRI measured tracked channels MULO-C. We're encouraged by the continued strong growth we're seeing this year, and we remain committed to our long-term plan to deepen our household penetration, increase category share, and expand usage occasions to drive velocity of our products. We're pleased to have numerous tailwinds working in our favor, including increasing consumption of coconut beverages, driven in large part by demand from multicultural consumers and by growing consumer preference for natural and functional beverages. Over the years, we've found that our Vita Coco products actively source from the $10 billion isotonic category and from the $11 billion juice category. Our ability to source consumption across beverage categories and occasions is a primary driver of our growing household penetration. According to Numerator, Vita Coco household penetration currently stands at 11.4% on a 52-week rolling basis. That's up approximately 170 basis points over the last year, meaning that we've added about 2.3 million households versus the prior year. We're extremely proud of this progress, but we're not stopping here. We believe our coconut beverages are still in the early days of becoming a household staple, and there's plenty of runway to add new households and introduce consumption occasions. As a beverage pioneer, we plan to take a leading role in driving innovation in the coconut water and coconut water adjacent categories. Along those lines, we're pleased to enter into a collaboration with Diageo to introduce Vita Coco Spiked in early 2023. It's a delicious ready-to-drink cocktail made with their flagship Captain Morgan rum brand. We think it's not only another way to increase our brand awareness across the beverage landscape, now including alcoholic beverages, but also to increase consumption occasions for coconut water through educating consumers on the great taste of coconut water cocktails. We think it's a natural combination. If it isn't obvious, I'm particularly excited about the future of our business. Vita Coco is one of the most recognized healthy beverage brands in the world, and we're optimistic that we have essentially unlimited headroom to continue translating these many opportunities into category growth, market share gains, and increased household penetration. In summary, we remain confident in our ability to deliver on our long-term algorithm of mid-teens net sales growth. Additionally, we remain committed to our goal of being the industry's better beverage company, one which focuses on providing healthier alternatives as compared to conventional beverages. One that strives to do better for the world in which we live. Before I turn it over to Martin, I wanna briefly express my appreciation to our CFO, Kevin Benmoussa, who will be leaving Vita Coco at the end of this month to pursue an outside opportunity. Kevin has been an excellent business partner and a great friend over the years. I'm especially grateful for his dedication and contribution to our company, and we wish you all the best, Kevin. Now I'll turn the call over to our Chief Executive Officer, Martin Roper. Thanks, Mike, and good morning, everyone. We are very happy with our strong first half performance in 2022, which resulted in a first half net sales increase of 19% as compared to the prior year period, driven by continued strong consumer demand for our products, mainly Vita Coco coconut water. In addition, as we will discuss in more detail later, we saw an improvement from the first quarter in our gross margins, reflecting the initial effects of our pricing actions and a stabilization of key transportation costs, partially as a result of our mitigation efforts. In the second quarter of 2022, we increased global net sales by 13%- $150 million compared to net sales of $102 million in the second quarter of 2021. The growth versus last year was driven by 21% net sales growth of Vita Coco Coconut Water, offset by private label and other. Net sales in the Americas, which comprise 87% of total net sales in the second quarter of 2022, increased 17%- $100 million compared to $86 million last year. Net sales for our international segment, which comprises the remaining 13% of total net sales, were down 5% compared to the same year ago period, primarily driven by a negative lap of opportunistic commodity sales last year, combined with a negative impact of foreign exchange rates caused by the strengthening of the dollar relative to currency in our European markets. Supporting our volume growth within the Americas, year to date, we believe that we've gained approximately 11,000 incremental net points of retail distribution of Vita Coco in the United States over the second quarter last year as more set modifications were rolled out and executed against. We were hampered slightly by inventory availability on certain SKUs, but assuming inventory conditions improve, we believe we remain on track to reach our goal of 25,000 net new points of distribution by the end of the year. As we previewed last quarter, we took our planned first phase of frontline price increases during the second quarter, and we have now also communicated to our retail partners our price increases planned to take effect during the fourth quarter of this year. I can confirm what we stated last quarter, that we expect our planned pricing actions, once fully realized on an annual basis in 2023, to offset the current level of elevated costs on a dollar basis. On a consolidated basis, our second quarter benefited from a 3% price mix split, largely driven by a 6% benefit in the Americas and partially offset by international, where price increases were offset by negative foreign exchange impact. The price mix benefit in the Americas segment was mainly driven by reduced promotional investment and frontline price increases in our Vita Coco Coconut Water and price improvements implemented on private label products. While we saw negative impacts internationally, mostly driven by lower commodities, opportunistic sales, and foreign exchange impact. To date, as it pertains to demand elasticity, we're not seeing a material negative impact on our volumes resulting from higher pricing. We are seeing higher growth rates for our larger pack sizes that realize lower net revenue per case equivalent, and this mix impact has reduced our reported net revenue per case equivalent gains. Going forward, as we expect our net sales mix to move towards larger format SKUs and multi-packs over time, we anticipate some negative mix effect on net pricing per case equivalent from this mix shift, which could partially offset the otherwise positive impacts of our pricing actions in America. We believe this trend on larger packs and formats is indicative of a healthy brand and should result in increased overall consumption as consumers have more coconut water available in their homes. For modeling purposes, we expect a more moderate impact from price mix for the remainder of the year due to timing of our increases and promotional activity, especially in the Americas, where we will lap lower branded promotional activity. This had a disproportionate impact during the third quarter last year, producing higher reported net revenue per case, which makes for a tougher comparison this year when our promotional cadence is more normalized. We're pleased with our multi-pack initiatives on Vita Coco, as demonstrated by the American scan data. While it is still early in the testing of our Vita Coco juice can offering, the reaction from C store retail test partners has been very positive. We expect to roll the canned juice product to more retailers and markets next year. We remain excited about our innovation pipeline for Vita Coco coconut water and associated Vita Coco product format extensions, as well as for our developing brands. Our intent is that all these initiatives will contribute more to our portfolio in the future. In U.S. scan data for the second quarter, we see private label coconut water growing, but slower than both the category and Vita Coco branded revenue. Our private label volumes and net revenue are growing year-to-date, despite weakness in the reported second-quarter shipments. We expect full-year America private label shipments and net revenue to track our year-to-date trends with the benefits of price increases and new business offsetting some reductions in demand from other customers. Regarding the cost environment, as I alluded earlier, we saw during this quarter a stabilization of the transportation cost increases experienced in prior quarters, as well as some improvement in our own ability to mitigate unplanned expenses such as detention and demurrage. These improvements showed up in better cost of goods per case equivalent and better margins for the second quarter than our first quarter. We believe that our total transportation costs peaked during Q4 and Q1. We maintain our supply chain as one of our key competitive advantages. It has continued to perform well with the unprecedented supply chain challenges the world is facing, particularly the unpredictability of ocean shipping container availability and rates, ocean shipping reliability and challenges at ports with detention and demurrage. During the quarter, our supply chain supported record quarter volumes, but we still experienced out of stocks on certain SKUs in certain locations as achieving balanced inventory across our warehouses continues to be challenging, with strong demand and unplanned transit and port delays or skipped sailings affecting our service levels. On ocean container availability, we recently began to be offered additional capacity on certain routes beyond our contracted agreements, but at spot prices typically at or higher than our contracts. We're taking advantage of the best offers to improve our inventory positions in market. Assuming this continues, this should help resolve our inventory challenges by the end of the third quarter. We also believe these offers are a sign of ocean container demand weakening. In-transit times remain higher than normal, and at the end of the quarter, approximately half of our finished goods inventory remained in transit prior to receipt in country. On ocean freight costs, as we indicated last quarter, we have tried to limit our entry into new contracts, except where we have to obtain guarantees on capacity to secure our service levels. As we near the end of the year, much of our container needs are secured and already in transit. Based on shipments to date and our current contractual commitments, only approximately 25% of our ocean freight container capacity needs for the rest of the year are reliant on spot markets. As we negotiate new ocean freight contracts for lanes whose contracts are expiring, we are seeing proposals that still represent an increase in our old contract rates from the prior year contracts. Please see the graphic presented in our investor deck for a visualization of this effect. For each proposal, we evaluate whether to enter into a capacity and price contract or to operate past our needs uncontracted relative to price. We are also evaluating the possibility of shorter duration contracts, given our expectation that rates are more likely to soften than to increase. Currently, we are contracted for approximately 30% of our 2023 container needs, mainly due to the multi-year agreement we entered into last year that expires during 2024. Our financial outlook for 2022 assumes the balance of our needs are priced at the current rates we are being offered. Our primary commercial focus for the balance of the year is navigating the challenging supply chain logistics environment, particularly some challenges in obtaining certain ingredients for our flavored Vita Coco Coconut Water SKUs, where we expect some out of stocks during the third quarter. Despite this, we are still confident that strong consumer demand, our expected improvements to overall inventory availability, and our planned fourth quarter frontline price increases will help drive top line growth, and we are maintaining our full year net revenue outlook. More importantly, as discussed prior, we anticipate that all the pricing action we will take this year will offset the higher costs we are currently experiencing. Even absent any cost improvements are the first step to returning our business closer to our long-term financial algorithm of gross margins approaching 40% and EBITDA margins in the high teens. Net, based on our current assumptions, we remain confident in our ability to achieve our financial targets for 2022. Based on everything we see in the market currently, the worst may be behind us from a margin deterioration perspective. Today, we are reaffirming our previous net sales and Adjusted EBITDA guidance, which Kevin will detail for you shortly. With that, I will turn the call over to Kevin Benmoussa, our Chief Financial Officer. Thanks, Martin, and hello, everyone. I will now provide you with some additional details on the second quarter 2022 financial results. I will then discuss the drivers of our outlook for the 2022 fiscal year. As Martin discussed earlier, we're seeing sequential improvements which we would classify more as a stabilization of transportation cost environment during the second quarter that has extended into the third quarter thus far. Our top line growth remains strong and we're on healthy financial footing with relatively low financial leverage and ample liquidity. In the second quarter of 2022, net sales grew 13% to $115 million, an increase of $13 million compared to the second quarter of 2021. The increase was driven by continued strong consumer demand for Vita Coco coconut water, with global net sales up 21% year-over-year. On a segment basis within the Americas, Vita Coco Coconut Water grew 23%- $76 million for the second quarter of 2022 compared to the same period last year. The increase was primarily driven by higher case equivalent volume from continued strong consumer demand, combined with net positive benefits from price mix, largely driven by higher frontline pricing. Private label declined 3%- $21 million for the second quarter, driven by a decline in case equivalent volume, partly offset by improved pricing. International segment net sales declined 5%- $15 million in the second quarter of 2022, primarily driven by foreign exchange headwinds in our European region, where on a constant currency basis, net sales increased over the prior year period. Additionally, overall net sales decline was impacted by other products as we lapped opportunistic commodity sales for the previous year. Within the international segment, both Vita Coco Coconut Water and private label net sales grew 13%. Consolidated gross profit for the second quarter was $29 million, driven by strong case equivalent volume growth, favorable net pricing, and positive mix shift to Vita Coco Coconut Water, which were more than offset by significantly higher transportation costs versus last year. As a result, our consolidated gross margin of 25% was down versus prior year, although it sequentially improved from Q1, 2022 by more than 500 basis points. Our supply chain continues to perform well, and we have seen encouraging signs of stabilization in our transportation costs for the second quarter. Moving on to operating expenses. Our SG&A in the second quarter increased $3 million to $24 million versus the same period last year. The increase was largely due to incremental ongoing costs related to operating a public company, including higher spending on personnel-related expenses, insurance, and other professional fees. Net income in the second quarter was negatively impacted by a non-cash mark-to-market loss in fair value on foreign currency hedges of $3 million, whereas we benefited from a gain of $5 million last year. As a result, net income attributable to shareholders was $1 million or $0.02 per diluted share for the second quarter of 2022, compared to net income of $8 million or $0.15 per diluted share in the second quarter of 2021. Adjusted EBITDA, which excludes the impact of interest, tax, depreciation, amortization, stock-based compensation expense, and non-cash foreign exchange mark-to-market in the second quarter was $7 million versus $10 million in the same period last year. The year-over-year decrease was primarily driven by higher transportation costs and SG&A spend, as previously discussed, which was only partially offset by higher case equivalent volume and net pricing action. Now, I would like to provide some updates on our gross margin evolution compared to past quarters. As previously stated, we continue to experience persistent cost pressures from transportation. Though we have seen sequential improvements versus Q1, ocean freight rates remain well above historical levels. As you can see in our earnings presentation, our total cost of goods for case equivalent increased 7% versus prior year period, mostly driven by an increase in our transportation costs, while finished goods slightly benefited from positive rate mix. Looking at our total cost of goods inflation over two years, we estimate that our consolidated gross margin was impacted by over $10 million in Q2 2022, and close to $30 million total in H1 2022 versus the same period in 2020 by these unusual transportation cost effects. Based on our full year current guidance assumptions, we anticipate this two-year impact to be approximately $60 million on a full year basis. As you can see, we've experienced improvement in our margins since Q1 and continue to expect significant upside to our gross margin structure once these transitory cost pressures recede, which we remain confident will ultimately happen. Now turning to our balance sheet and cash flow. As of June 30, 2022, we had total cash on hand of $16 million and $22 million of debt under our revolving credit facility, compared to $29 million of cash and no debt as of December 31, 2021. The decrease in net cash was primarily driven by working capital due to significant accounts receivable increase as per our business seasonality, partially funded by our credit facility. Moving on to our full year guidance and our view on how the second half of the year will take shape. We continue to expect fiscal year 2022 net sales to be between $440 million and $455 million, representing growth in the range of 16%-20% versus 2021 as consumer demand for our products remain robust. While the cost environment continues to be volatile, we are reaffirming our non-GAAP Adjusted EBITDA guidance to be in the range of $27 million-$32 million. This reflects the increased cost pressure we have faced so far this year and accounts for the incremental mitigating action we have identified across our P&L for the remainder of the year, which we have already started to implement. As it pertains to the second half of the year, we expect our top line growth in Q3 to be in line with what we've seen in Q2, with stronger growth expected for Q4. On the gross margin side, we expect Q3 to be in line with Q2, with some expansion in Q4 as we anticipate more benefits from net pricing action. On a full year basis, we continue to expect strong case equivalent volume growth in the mid-teen with a few percentage points of positive price mix lift, mostly driven by the Americas segment as pricing action takes effect. As Martin described earlier, we expect a more moderate impact from price mix for the remainder of the year due to timing, especially in the Americas, as we anticipate lapping lower branded promotional activities which had largely materialized in the second half of 2021 and which have had a disproportionate impact on the third quarter. We continue to expect cost of goods sold per case equivalent inflation in Q3 to run into the low double digits versus prior year, which should moderate towards the end of the year as we lap larger cost increases in Q4, 2021. As a result, we're modeling our full year 2022 gross margin to land in the mid-twenties, consistent with our prior guidance. Below the line, we expect higher year-over-year operating expenses from increased personal expenses and other costs associated with being a public company. As it pertains to our collaboration with Diageo to introduce Vita Coco Spiked, which launches early next year, we expect to treat this as a licensing agreement for accounting purposes, and if successful, to contribute meaningfully to our profit in future years. Lastly, I would like to thank Mike, Martin, and the entire Vita Coco family for the last couple of years we have been working together. This experience has been truly amazing, and as I move on to my next chapter, I will remain a big supporter of the brand and this great company. I wish them all much continued success. With that, I'd like to turn the call back to Martin for his closing remarks. Thank you, Kevin. To close, I'd like to reiterate our confidence in the long-term potential of the Vita Coco brand. We remain excited about our key initiatives to drive growth long-term and short-term, both within the Vita Coco brand and our new brand initiatives. Despite the persistent challenges in the transportation environment, we are encouraged by the recent improvements to ocean container availability and the softening of ocean freight spot rates. The Vita Coco Company has an exceptionally strong brand in Vita Coco with a solid balance sheet, and we are well positioned to emerge even stronger once transportation costs subside further, which we firmly believe they will. Before we take your questions, I want to offer my appreciation to Kevin for his dedication and contribution over the last four years. I especially enjoyed working with him and appreciate his support. Under Kevin's leadership, the company has built a highly qualified finance and accounting team that I believe is more than capable of supporting the finance and reporting function during our CFO transition. I'm particularly pleased that Rowena Ricalde, our VP, Global Accounting and Control, will assume the interim CFO role upon Kevin's departure, and I look forward to working closely with her and her team to ensure we do not miss a beat. While we are actively interviewing, this structure and capability gives us the luxury of being patient to find the best candidate for this exciting opportunity. Thank you for joining us today, and thank you for your interest in The Vita Coco Company. That concludes our second quarter prepared remarks, and we will now take your questions. Thank you. Ladies and gentlemen, to ask a question, please press star one one on your telephone. Again, that's star one one on your telephone to ask a question. Our first question comes from the line of Bonnie Herzog of Goldman Sachs. Bonnie Herzog, your line is open. All right. Thank you. Good morning, everyone. Good morning. Hi. I had a question, I guess, on the negative mix impact of the larger pack sizes that you called out. Just hoping you could give us a sense maybe of, you know, what percentage of your business is now larger pack sizes, maybe, you know, versus a year ago. You know, how much of a drag could this be in your margins in the second half? I know, you know, you mentioned it's going to offset some of the benefits of the pricing you have planned. I guess I'm also wondering why you might not be considering taking even more pricing now to offset, you know, this issue. Yeah, Bonnie, thanks. I think, when you look at the sort of scanned mass and food channels, multipacks are still a pretty small part of our business. They're obviously a big part of our business in club. We're seeing growth in the scanned channels, mass and food of the multipacks that's faster than the singles. We do have that mixed effect showing up in the scanned data, which depresses sort of the price realization that shows up in the scanned data. From a P&L perspective, the same effect will happen. It's not a, you know, a gushing torrent towards multipacks. We're just highlighting it, but it's gonna be a drag in our pricing. We're taking pricing up across the board or across our whole business with the goal for next year to absorb fully the cost of goods increases that we're currently experiencing on a per case dollar basis. We'll, you know, look at, you know, the movement into multipacks and decide if we need to make further pricing actions next year. Okay. Just to clarify, in terms of the pricing that you had already talked about, you know, putting in the market, it's sort of in line with your previous expectations. Yeah. The Q2 pricing that we executed is in line with our previous expectations, and we have communicated our Q4 plans, and those are in line with what we previously communicated. Okay. You know, just as we think about next year, I know it's a bit early, but any thoughts on, you know, continued gross margin recovery for next year? I know you've suggested previously, you know, that you do see potential for further margin expansion. Just based on, you know, what you guys just discussed, you know, just curious to hear your latest thoughts on this and, you know, if this is certainly still possible and just maybe some more colors on some of the key drivers that, you know, are going to impact next year. Thanks. Yeah. I think the first point on the gross margin question is what we said about our pricing, which is designed to recover on a dollar basis the current cost environment. That will obviously enhance margins next year. I think we've alluded to the fact we expect Q4 margins to be better when that pricing goes in sequentially, right? Next year's margins should be better than this year's margins based on that pricing, all other factors being equal. We haven't provided guidance as to what that does, but, you know, we've obviously indicated the size of the pricing, so you could model, you know, what that would do on a margin basis. We view it as a journey back to sort of high 30s% gross margins, which we think is where the business should operate under a normal transportation cost, you know, economy environment. That's a good step. As we think about other impacts on gross margin, obviously the other one is what happens, you know, to the transportation environment. There, I think we're optimistic that we're seeing, you know, good solid signs of the opening up of that. Although again, it's, you know, to be clear, it's very challenging versus two years ago. We're still at multiples of rates versus two years ago. The question is how fast do things return to an equilibrium? I think we believe the equilibrium will be close to where it was two years ago, so there's a lot of margin recovery to happen. The question is how fast that happens. We, in our contracting, you know, are being more cautious in entering into longer term contracts because obviously they lock us in at current contract rates, and we believe those are likely to decline as time goes on. We're looking at shorter contracts to take advantage of, hopefully, those declines as they happen. That would be the other impact that could happen. Again, we don't have a crystal ball on that, but we're optimistic that we're on a pathway, you know, to recovering our gross margin, you know, against a long-term algorithm. You know, I think you asked about next year, and obviously we haven't provided guidance, but obviously the category is healthy and growing. We're driving that. You know, I think we believe that should continue, because it's driven by consumer interest in our brand and in coconut water and all the sort of tailwinds that we have behind our top line. Okay. Appreciate that. That was helpful. Thank you. Thank you. Our next question comes from the line of Chris Carey of Wells Fargo. Chris Carey, your line is open. Hi, good morning. I just wanted to follow up quickly on the pack sizes and, you know, you're seeing trade ups of larger pack sizes. Does that impact at all the confidence levels on the pricing that you're gonna be taking into the back half of the year if consumers are searching for more value in a way that shows some building of elasticity given that mix shift? I just wonder if that's, you know, impacting how you're assessing those pricing actions into the back half of the year that I would follow up. Hey, Chris, this is Kevin. Let me take that. Just want to clarify here. I think what we said earlier around the shift in that pack mix is more like on the longer run. As we think about our outlook for H2 and balance of year, we've taken into account like some assumptions, but it's really not material, especially for this year, right? This is more like providing more color as we think about our longer term algorithm and how this evolves. As it relates to our pricing action and what we take in our outlook, everything is fairly in line to what we previously communicated, right? We don't anticipate any big meaningful impact from this mix shift right now for this year. I would add though also that, you know, this has been a trend we've seen for a while now. We don't think it's necessarily people looking for value. They're drinking more of the product. They're buying more of the product. They're keeping more of the product at home, which is why they're buying more multi-packs, we believe. I think for us, as we talked about last quarter, it's strategic that we are the brand that can have multi-packs on the shelf because we're the largest brand. It's a strategic move for us. It protects shelf space, it increases share, and so we view it as, you know, a long-term positive. Okay, perfect. You know, the follow-up is just around Martin. I think you mentioned that ocean freight rates contractually would still imply inflation year-over-year. You also mentioned that pricing actions should offset inflation through 2023. You know, if those contracted rates, if you were to sign those contracted rates that you see right now, would that pricing comment still hold through 2023, or would you have to take incremental pricing? The pricing comment holds on the sort of costs that we're currently experiencing, and, you know, sort of as we look at the balance of the year. That's what we're currently modeling for pricing is a good place to set pricing for next year. Then we can obviously take a little more if we need to or we can promote off from that. Okay, perfect. Thanks for both of those. Thank you. Our next question comes from the line of Michael Lavery of Piper Sandler. Michael Lavery, your line is open. Thank you. Good morning. Good morning, Michael. I just wanted to come back to Spiked. You touched on the arrangement having the licensing component, which of course would be great margins, but would it also include selling product as an ingredient and would that offset how we should think about the margins in total? Yeah. I mean, we're not disclosing financial terms of the agreement with Diageo. You know, we think that over time it could have a significant impact on our profit, but we don't expect something in the very near future as we're investing in getting the business going in 2023. Okay. That was also one of the pieces I wanted to understand. It's just that you're sharing in some of the marketing investments for that as well, obviously. It's part of the structure of the financial terms. Yeah. Just wanted to follow up on the distribution. You talked about the 25,000 new points of distribution target for the year that you're almost halfway through. It's obviously skewed to the second half if you hit that. What's the runway? Do you have visibility on, you know, are you on track to hit that for the end of this year? Yes, we believe so. Obviously we're happy with the 11,000 that we've delivered to date, but we've been hampered a little bit by specific SKU sort of inventory challenges that we alluded to in the script. That's caused some, you know, voids, you know, in our tracking that we would have expected normally to be filled. Yeah, we believe we're on track for the 25,000, assuming the inventory sort of situation resolves itself during the third quarter. Okay, great. Thanks so much. Thank you. Our next question comes from Robert Ottenstein of Evercore ISI. Robert Ottenstein, your line is open. Great. Thank you very much, and congratulations on strong results. Thanks, Robert. Thanks, Robert. You've got, you know, 700 basis points of value share, which is remarkable. You know, looking back at that, I know we've talked about this in the past, but just wanna get your updated views. You know, how much of that value share gain do you think is attributable to, you know, price increases from competitors or out of stocks from competitors? You know, do you expect that you'll give up some of that when you execute your full pricing? I'm just trying to get a sense of what, you know, the dynamics there and where things are likely to end up on the market share side. Thank you. Well, I think, you know, we believe that it's, you know, been our sort of retail execution and the strength of the brand. And that's what's driven share. It's really hard to parse out, you know, the causes of that related to other brands. The other brands sort of started taking pricing sort of maybe earlier this year. You know, the share gains were happening before that. Certainly some of it could be just our better availability and execution, but we're translating that also into more shelf space now and squeezing out these players. We're trying to lock in those gains, and I think we feel pretty good about that. It's really hard to parse. I think if I could add just, you know, remember we're larger than our next, roughly call it 10 competitors combined. There's a long tail or there historically was a long tail of small brands in this category. We think that as we've continued to gain share and execute really well at retail, we've pushed some of these brands out to the point where they're not coming back, because they were very small and the economics just don't work for them at that size and that scale. We think we're in a really good position to continue to gain market share over time. this kind of 50% plus is not, in your view, an aberration, but you know, a relatively steady state and you can grow from here? Yes. Okay. That's terrific. Is there any way to quantify shelf space gains or your progress in terms of building out the C-store penetration? I know you mentioned some data about increased number of stores, and I wasn't sure what exactly that referred to. Yeah, I think I was answering the question on, you know, the. You know, we communicated earlier this year that we were gonna try and deliver 25,000 net new points of distribution across our universe. We used sort of depletion tracking data for that, sort of VIP type data. And we're on track for that. I think previously we maybe communicated that if we got that represented I think 6%-8% total points of distribution growth. That would help you quantify it. That's net new points. We've got some legacy innovations that, you know, we're losing distribution on because we've decided not to support them, and we're delivering that, you know, on, you know, through the initiatives that we talked about with, that's net new points. We've got some legacy innovations that, you know, we're losing distribution on because we've decided not to support them, and we're delivering that, you know, on, you know, through the initiatives that we talked about with the C-stores being the primary driver where we have the juice product in test. Right. I guess the question of that, and then I'll move on, is the move to C stores or the increased presence in C stores enough to have a noticeable impact on your price mix? Great question. I don't think the sort of trends between C-store, mass, and food, where obviously you have very healthy trends in both places, is sufficient to drive, you know, something at the price realization of the company level that you would be able to detect. We are, you know, as part of our test on juice, we're testing different price points and certainly, you know, if juice became very big, that might have a bigger effect on mix. Have not yet decided what our strategy is there, so can't comment. Great. Thank you very much. Thanks. Thank you. Again, to ask a question, please press star one one on your telephone. Again, that's star one one on your telephone to ask a question. Our next question comes from the line of Bryan Spillane of Bank of America. Bryan Spillane, your line is open. I had two questions. The first one, as we're looking at price elasticity and cross elasticity, you know, what's kind of hard to see in the Nielsen data is because of the mix effect, I guess it's driving price mix down as we're looking at Vita Coco. But as we're looking at like isotonics where pricing's been up mid-teens, you know, it looks like the price gap, if you will, between Vita Coco and isotonics has actually widened and that actually maybe creates some opportunity and some headroom, I guess, for your price increases. Just, again, it's kind of hard for us to see it in the Nielsen data. I just wanted to see if that's actually accurate, that you know, isotonics have moved more on pricing than you have so far, and that gives you a little bit of headroom, I guess, as you're thinking about cross elasticities and sourcing from isotonics. Yeah. I think importantly to date, we have not taken material frontline pricing. We took some in Q2, but Q4 plans are more material. We've seen other beverage categories, you mentioned isotonics, but it's true across most non-alcoholic beverage categories. They've taken 10%-15%. We think that has created room for us to move. You know, given our current sort of demand is, you know, as big as our supply, if not bigger, given our sort of inventory issues, we're pretty comfortable we have room to move. Okay. Follow-up question is just, or second question is really just the, you know, the move into alcohol for Vita Coco, for the brand. Can you just talk about how you thought about being positioned as a health and wellness brand and also actually as a health and wellness company, how that reconciles with moving into alcohol, which, you know, is distinctly not a health and wellness category. Just how you're gonna sort of navigate making sure that the move into alcohol doesn't dilute, you know, the image of the company, but also just the kind of positioning of the brand. Yeah. Well, in general, I think we look at our consumers as health-conscious and health-aware and looking for functional beverages. But they're not necessarily, "My body is my temple, and I won't put anything into my body." A lot of our consumers, you know, do consume alcohol on occasion. You know, and they're balanced. You know, if you've ever traveled around the tropical world, coconut water is one of the most consumed mixers with alcohol. It's just a natural effect, a natural mixer. And we believe that there's a real consumption occasion here beyond just our ready-to-drink cocktails with Diageo. We think there's a real opportunity to open up an entirely new consumption occasion, which is as a mixer with spirits. You know, especially as consumers are looking for healthier alternatives, not only to their daily beverages that they drink, like Vita Coco's compared to traditional sports drinks, for example, but also is in what they're mixing in their spirits and in their alcohol. We're excited about the opportunity to open up an entirely new occasion. Okay. Thanks. Thank you. At this time, I'd like to turn the call back over to CEO Martin Roper for closing remarks. Sir? Yeah. Thanks, everybody, and we look forward to talking to you again in three months. Ladies and gentlemen, this does conclude your program. Thank you for your participation. You may disconnect at this time. Time.