Good day, and welcome to the Monster Beverage Corporation Second Quarter 2023 Financial Results Conference Call. All participants will be in the listen-only mode. Should you need assistance, please signal a conference specialist by pressing Star, then 0. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press Star, then 1 on a touchtone phone. To withdraw your question, please press Star, then 2. Please note, this event is being recorded. I would now like to turn the conference over to Mr. Rodney Sacks and Mr. Hilton Schlosberg, co-CEOs of Monster Beverage. Please go ahead. Thank you. good afternoon, ladies and gentlemen. Thank you for attending this call. I'm Rodney Sacks. Hilton Schlosberg, our Vice Chairman and Co-Chief Executive Officer, is on the call, as is Tom Kelly, our Chief Financial Officer. Tom Kelly will now read our cautionary statement. Before we, we begin, I would like to remind listeners that certain statements made during this call may constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are based on currently available information regarding the expectations of management with respects to revenues, profitability, future business, future events, financial performance, and trends. Management cautions that these statements are based on our current knowledge and expectations and are subject to certain risk and uncertainties, many of which are outside the control of the company, that may cause actual results to differ materially from the forward-looking statements made during this call. Please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K, filed on March 1st, 2023, and quarterly report on Form 10-Q, including the sections contained therein, entitled Risk Factors and Forward-Looking Statements, for discussion on specific risks and uncertainties that may affect our performance. The company assumes no obligations to update any forward-looking statements, whether as a result of new information, future events, or otherwise. I would now like to hand the call over to Rodney Sacks. Thanks, Tom. The company achieved record second quarter net sales of $1.85 billion in the 2023 second quarter, 12.1% higher than net sales of $1.66 billion in the 2022 comparable period, and 14.4% higher on a foreign currency adjusted basis. Gross profit as a percentage of net sales for the 2023 second quarter was 52.5%, compared with 47.1% in the comparative 2022 second quarter. The increase in gross profit as a percentage of net sales for the 2023 second quarter, as compared to the 2022 second quarter, was primarily the result of pricing actions, decreased freighting costs, and increased aluminum can costs. The increase was partially offset by lower gross margins in the alcohol segment and, in, in which our sales had quite a nice bump, as you've seen from the release. As expected, promotional allowances for the 2023 second quarter were marginally higher than the comparable 2022 second quarter, as well as the 2023 first quarter. Operating expenses for the 2023 second quarter were $450.4 million, compared with $406.9 million in the 2022 second quarter. As a percentage of net sales, operating expenses for the 2023 second quarter were 24.3%, compared to the 24.6% in the 2022 second quarter. Distribution expenses for the 2023 second quarter decreased to $82 million, or 4.4% of net sales, compared to $87.9 million, or 5.3% of net sales in the 2022 second quarter. The $5.8 million decrease in distribution expenses was primarily due to decreased freight out expenses of $11.8 million, partially offset by higher warehouse expenses of $4.8 million, as a result of higher raw materials and finished product inventories in the United States and EMEA. The increase in other operating expenses was primarily due to increased payroll expenses. We are purchasing aluminum cans from local sources globally. We have returned to our orbit strategy of producing in closer proximity to our customers. The costs of repositioning finished products to distribution centers are included in freight in costs. The company continues to address certain challenges in its supply chain as it navigates the current global supply chain environment. Operating income for the 2023 second quarter increased 40.4% to $523.8 million, from $373 million in the 2022 comparative quarter. The effective tax rate for the 2023 second quarter was 23.2%, compared with 25.3% in the 2022 second quarter. The decrease in the effective tax rate was primarily attributable to an increase in deductible interest expense, a decrease in the effective state income tax rate, as well as an increase in net income in certain foreign jurisdictions, which have lower tax rates compared to the United States. Net income increased 51.4% to $413.9 million, as compared to $273.4 million in the 2022 comparable quarter. Diluted earnings per share for the 2023 second quarter increased 52.8% to $0.39 from $0.26 in the second quarter of 2022. Due to continued cost pressures, the company implemented pricing actions in the United States in 2022, as well as in many other international markets in 2022 and in the first half of 2023. The company plans to implement additional price increases in a number of other international markets during the remainder of the 2023 year. In the United States, the company implemented an additional price increase on its 18.6 ounce and 24 ounce lines, effective April 1, 2023. We will continue to review further opportunities for pricing actions in order to mitigate inflationary pressures. According to the Nielsen reports, for the 13 weeks through July 22, 2023, for all outlets combined, namely convenience, grocery, drug, mass merchandisers, sales in dollars in the energy drink category, including energy shots, increased by 13.6% versus the same period a year ago. Sales of the company's energy brands, including Reign, were up 12.2% in the 13-week period. Sales of Monster were up 10.5%. Sales of Reign were up 43.7%. Sales of NOS increased 11.2%, and sales of Full Throttle increased 14.7%. Sales of Red Bull increased 10.2%. The company continues to have market share leadership in the energy drink category for all outlets combined in the United States in both the 13-week and 4-week periods ended July 22, 2023. According to Nielsen, for the 4 weeks ended July 22, 2023, sales in dollars in the energy drink category in the convenience and gas channel, including energy shots in dollars, increased 13.7% over the same period the previous year. Sales of the company's energy brands, which include Reign, increased 13.8% in the 4-week period in the convenience and gas channel. Sales of Monster increased by 11.1% over the same period versus the previous year. Reign's sales increased 54.9%, NOS was up 13.2%, Full Throttle was up 23.2%. Sales of Red Bull were up 8.8%. According to Nielsen, for the 4 weeks ended July 22, 2023, the company's market share of the energy drink category in the convenience and gas channel, including energy shots, in dollars, increased from 36%- 36.1%. Monster share decreased from 30.4% a year ago to 29.8%. Reign's share increased 0.8 of a share point to 3.1%. NOS's share remained at 2.5%, and Full Throttle share remained at 0.7%. Red Bull's share decreased 1.6 points from 36.3% a year ago to 34.7%. VPX Bang's share decreased 4.2 points to 1.8%. 5-hour share was lower by 0.7 points at 3.5%. Rockstar share was down 0.2 of a point to 3.4%. Celsius's share is 6.6%, C4's share is 3%, and Ghost's share is 2.8%. Please note that VPX Bang was in bankruptcy during this period, and we will address our acquisition of Bang later in this call. According to Nielsen, for the 4 weeks ended July 22, 2023, sales in dollars in the coffee plus energy drink category, which includes our Java Monster line in the convenience and gas channel, decreased 3% over the same period the previous year. Sales of Java Monster, including Java Monster 300 and Java Monster Nitro Cold Brew, were 3.3% higher in the same period versus the previous year. Sales of Starbucks Energy were 7% lower. Java Monster share of the coffee plus energy drink category for the 4 weeks ended July 22, 2023, was 54.1%, up 3.3 points, while Starbucks Energy's share was 45.6%, down 2 points. According to Nielsen, in all measured channels in Canada for the 12 weeks ended June 17, 2023, the energy drink category increased 14.8% in dollars. Sales of the company's energy drink brands increased 21.6% versus a year ago. The market share of the company's energy drink brands was 42.4%, up 2.4 points. Monster sales increased 25.6%, and its market share increased 3.3 points to 38.1%. NOS's sales decreased 5.8%, and its market share decreased 0.3 of a point to 1.3%. Full Throttle sales decreased 43.2%, and its market share decreased 0.3 points to 0.3%. According to Nielsen, for all outlets combined in Mexico, the energy drink category increased 23.7% for the month of June 2023. Monster sales increased 25.3%. Monster's market share in value increased 0.4 points to 28.8% against the comparable period the previous year. Sales of Predator increased 75.3%, and its market share increased 1.7 points to 5.6%. The Nielsen statistics for Mexico cover single months, which is a short period that may often be materially influenced, positively and/or negatively, by sales in the OXXO convenience chain, which dominates the market.... Sales in the OXXO convenience chain, in turn, can be materially influenced by promotions that may be undertaken in that chain by one or more energy drink brands during a particular month. Consequently, such activities could have a significant impact on the monthly Nielsen statistics for Mexico. According to Nielsen, for the month of June 2023 compared to June 2022, Monster's retail market share in value increased in Argentina from 50.5%- 55.5%, in Chile from 38.1%- 40.8%, and in Brazil from 41.6%- 44.4%. Monster Energy is the leading energy brand in value in Argentina, Brazil, and Chile. I would like to point out that the Nielsen numbers in EMEA should only be used as a guide, because the channels read by Nielsen in EMEA vary from country to country and are reported on varying dates within the month referred to from country to country. According to Nielsen, in the 13-week period until June 18, 2023, Monster's retail market share in value as compared to the same period the previous year, grew from 16.2%- 16.6% in Belgium, from 32.7%- 33.1% in France, from 29.8%- 31.1% in Great Britain, from 31.8%- 35.2% in Norway, from 28.1%- 30.3% in the Republic of Ireland, from 39.4%- 41.6% in Spain, and from 15.6%- 15.9% in Sweden. Monster's retail market share in value as compared to the same period the previous year, declined from 6.6%- 5.5% in the Netherlands. According to Nielsen, in the 13-week period ended until the end of June 2023, Monster's retail market share in value as compared to the same period the previous year, declined from 19.3%- 17.7% in South Africa. According to Nielsen, in the 13-week period until the end of May 2023, Monster's retail market share in value as compared to the same period the previous year, grew from 18% - 22.1% in the Czech Republic, from 27.4%- 28% in Denmark, from 15% - 16.4% in Germany, and from 28%- 29.9% in Italy. Monster's retail market share in value as compared to the same period the previous year, declined from 38.7% to 37.5% in Greece and from 20.6% to 18.7% in Poland. According to Nielsen, in the 13-week period until the end of May 2023, Predator's retail market share in value as compared to the same period the previous year, grew from 26.3% to 31.5% in Kenya and from 15.4%- 19.8% in Nigeria. According to IRI in Australia, Monster's market share in value for the four weeks ending July 9, 2023, increased from 14.1%- 16.9% as compared to the same period the previous year. Mother's market share in value decreased from 10.4%- 10.3%. According to IRI in New Zealand, Monster's market share in value for the four weeks ended July 9, 2023, increased from 12.6%- 14.9% compared to the same period the previous year. Lift Plus market share in value decreased from 6.5%- 5.6%, and Mother's market share in value remained at 5.3%. According to INTAGE in Japan, in the month ending June 2023, Monster's market share in value in the convenience store channel as compared to the same period the previous year, declined from 56.7%- 55.1%. According to Nielsen in South Korea, in the month ending June 2023, Monster's market share in value in all outlets combined as compared to the same period the previous year, decreased from 59.9%- 57.6%. We again point out that certain market statistics that cover single months or four-week periods may often be materially influenced, positively and/or negatively, by promotions or other trading factors during these periods. Net sales to customers outside the U.S. were $715.4 million, 38.6% of total net sales in the 2023 second quarter, compared to $649 million or 39.2% of total net sales in the corresponding quarter in 2022. Foreign currency exchange rates had a negative impact on net sales in U.S. dollars by approximately $38.4 million in the 2023 second quarter. Included in reported geographic sales are our sales to the company's military customers, which are delivered in the U.S. and transshipped to the military and their customers overseas. In EMEA, net sales in the 2023 second quarter increased 13% in dollars and increased 16.4% in local currencies over the same period in 2022. Gross profit in this region as a percentage of net sales for the second quarter was 34%, compared to 26.7% in the same quarter in 2022. We are pleased that in the 2023 second quarter, Monster gained market share in Belgium, the Czech Republic, Denmark, France, Germany, Great Britain, Italy, Norway, the Republic of Ireland, Spain, and Sweden. In Asia Pacific, net sales in the 2023 second quarter increased 17.8% in dollars and increased 26.7% in local currencies over the same period in 2022. Gross profit in this region as a percentage of net sales, was 42.4%, versus 40.4% over the same period in 2022. Net sales in Japan in the 2023 second quarter increased 11.9% in dollars and increased 21.2% in local currency. In South Korea, net sales increased 50.3% in $ and increased 59.5% in local currency as compared to the same quarter in 2022. Monster remains the market leader in Japan and South Korea. In China, net sales in the second quarter increased 3.7% in $ and increased 10.6% in local currency as compared to the same quarter in 2022. We remain optimistic about the prospects for the Monster brand in China. In the 2022 second quarter, our distribution partners restocked inventories following the easing of the COVID-19 restrictions in China. In Oceania, which includes Australia, New Zealand, Tahiti, French Polynesia, New Caledonia, Papua New Guinea, and Guam, net sales increased 26% in $ and 36.4% in local currencies. In Latin America, including Mexico and the Caribbean, net sales in the 2023 second quarter increased 0.1% in dollars and increased 9.4% in local currencies over the same period in 2022. In Brazil, net sales in the 2023 second quarter increased by 2.5% in dollars and 3.6% in local currency. Net sales in Mexico increased 23.3% in dollars and 10.1% in local currency in the 2023 second quarter. Net sales in Chile decreased 23.8% in dollars and decreased 26.6% in local currency in the 2023 second quarter. The decrease in sales in Chile were due in part to a normalization of bottler inventory levels. Net sales in Argentina decreased 19.5% in $, but increased 54% in local currency in the 2023 second quarter. We will now provide an update on our litigation with Vital Pharmaceuticals, Inc, which will be referred to as VPX, the former maker of Bang Energy drinks. We previously discussed the trademark infringement arbitration, in which an arbitrator found against VPX and awarded Monster Energy Company, or MEC, and Orange Bang, $175 million in damages, attorneys' fees and costs, and an ongoing 5% royalty on future sales of certain Bang Energy products. VPX has appealed the judgment. We also previously discussed the false advertising case in the United States District Court for the Central District of California, in which a jury returned a verdict awarding MEC approximately $293 million in damages, and the district court granted MEC's motion for a permanent injunction, enjoining VPX and former CEO, Jack Owoc, from falsely or deceptively claiming that Bang or any other beverages contain creatine or a form of creatine. VPX and Jack Owoc appealed the injunction. The parties have completed briefing on remaining post-trial issues. On October 10, 2022, VPX, along with certain of its domestic subsidiaries and affiliates, filed for protection under Chapter Eleven of the Bankruptcy Code in the United States District Court for the Southern District of Florida. On June 28, 2023, VPX and certain affiliates entered into an asset purchase agreement with the company, which, among other things, provided for the company's acquisition of substantially all of VPX's assets. The transactions contemplated by the asset purchase agreement closed on July 31, 2023, at which time the company was deemed to have allowed general unsecured claims in VPX's bankruptcy case relating to the arbitration award and the jury's award, subject to the potential modification of the jury award in the light of pending post-verdict motions filed by MEC and VPX. The asset purchase agreement also includes a mutual release between VPX and MEC, which, among other things, requires VPX to dismiss its appeals of the trademark infringement arbitration and the false advertising case, as well as cases that VPX filed against MEC in the United States District Court for the Southern District of Florida. Note that this mutual release does not include any claims the company might have against Mr. Owoc in relation to that jury award. The company will not recognize the allowed general unsecured claims or the jury award as it relates to Mr. Owoc, until they are realized or realizable. We will not be answering questions on these legal proceedings on today's call. In June 2023, the company also entered into an agreement with Orange Bang, Inc. regarding the company's use and registration of certain Bang trademarks and trade names, subject to the successful closure of the asset purchase agreement. Under this agreement, the company will pay Orange Bang, Inc. a one-time payment of approximately $12.5 million and a 2.5% royalty on all future sales of products bearing the trade name Bang. On June 31, 2023, we completed our acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc., Rodney, that was July. July the 31st. Sorry, sorry. Apologize. On July 31, 2023, we completed its acquisition of substantially all of the assets of Vital Pharmaceuticals, Inc., and certain of its affiliates, collectively, Bang Energy, for a purchase price of approximately $362 million, subject to adjustments. The acquired assets include Bang Energy beverages and a beverage production facility in Phoenix, Arizona. We successfully recruited a limited number of former VPX employees to fill certain open positions within Monster, as well as the majority of the team at the manufacturing site in Phoenix. Pursuant to Monster's obligations with The Coca-Cola Company, Bang Energy will be distributed through the Coca-Cola bottler network, starting with the United States in the 2023 third quarter. As a result, there will be a temporary disruption of the product supply of Bang Energy brand energy drinks. Additionally, our intention is to rationalize Bang's product offerings and product lines, and to fully integrate Bang into the Monster infrastructure. We do not intend to manufacture or sell Bang's other product lines, such as Redline or Shots, beyond liquidating existing inventories at this time. We may consider reintroducing certain of those product lines sometime in the future. We are excited about our acquisition of the state-of-the-art Bang Energy production facility in Phoenix, Arizona, which we intend to utilize for Bang as well as other products in the Monster portfolio. As we only completed the acquisition this week, it is still early days, and we will provide you with further updates on Bang Energy on our next investor call in November. In the first half of 2023, we launched The Beast Unleashed, which is now available in 28 states through a network of beer distributors. We are pleased with the early results and are continuing to expand distribution, with the goal of being national by the end of the year. According to Nielsen scanned data, The Beast Unleashed is currently one of the top new brands in the beer category in 2023. We plan to launch a hard iced tea extension of The Beast Unleashed, named Nasty Beast Hardcore Tea, later this year or early next year, with the goal of national distribution in the first half of 2024. The brand will have 4 flavors: Original, Half & Half, Razzle Berry, and Green. Nasty Beast Hardcore Tea will be available in 24 ounce single-serve cans, as well as in a variety 12-pack in 12-ounce sleeve cans. We refreshed the Dale's and Double Dale's beer brands in the first half of 2023 and introduced Dale's American Light Lager as part of the refresh. The brand family has performed well since the refresh. Jai Alai brand family, the largest in our beer portfolio from Cigar City, is also performing well despite overall headwinds in the craft segment and is showing growth in retail scans. Our alcohol beverage innovation pipeline is robust, and we look forward to sharing news of additional new products in the future. In the 2023 second quarter in the United States, we focused on gaining distribution on our first quarter product innovation. Following the success of our recent Monster Energy Zero Sugar launch, we are planning to launch NOS Zero Sugar in 16-ounce cans in the 2023 fourth quarter. In the 2023 second quarter, we expanded our Java Monster portfolio in Canada with the launch of Java Monster 300 Triple Shot Mocha and Vanilla. We launched several new products in Latin America in the 2023 second quarter. In Argentina, we introduced our Monster Reserve brand with the launch of Reserve White Pineapple in June. In the Caribbean, we continued to expand our portfolio and introduced a number of new products in different countries. After we successfully launched Java Monster Super Coffee, Mean Bean, and Loca Moca in Australia earlier this year, we expanded the launch of such products to the New Zealand market in the 2023 second quarter. We are pleased with early results in both markets. In EMEA, in the 2Q 2023, we launched Monster Reserve Watermelon and White Pineapple, Ultra Gold, Ultra Fiesta Mango, Ultra Paradise, Ultra Rosa, Ultra Watermelon, Juiced Aussie Lemonade, and Juiced Chaotic in a number of countries. During the 2Q 2023, we also launched additional SKUs of BPM, Burn, Nalu, Predator, and Reign in certain countries. We launched the Monster Energy brand in Egypt in June 2023 to add to Predator, which we launched earlier this year in Egypt. In EMEA, as part of an ongoing pan-EMEA launch, we expanded the distribution of our Monster Energy Lewis Hamilton 44 Zero Sugar energy drink to an additional 8 EMEA markets in the 2Q 2023, for a total of 35 markets to date. During the second quarter of 2023, we launched Monster Reserve Watermelon in Japan and Monster Ultra Sunrise in Korea and Monster Reserve Pineapple in Turkey. We launched Predator in additional regions in India. We are planning to introduce the Predator brand in additional countries in APAC in the course of 2023. In July 2023, we launched Monster Ultra Peachy Keen in Japan and Predator in Iraq. Monster Energy will be launched in the Philippines later this year. We estimate that on a foreign currency adjusted basis, including the alcohol brand segment, July 2023 sales were approximately 13.7% higher than the comparable July 2022 sales, and 12% higher than July 2022, excluding the alcohol brand segment. We estimate July 2023 sales, including the alcohol brand segment, to be approximately 12.1% higher than in July 2022, and 11.2% higher than in July 2022, excluding the alcohol brand segment. July 2023 had the same number of selling days as July 2022. In this regard, we caution again that sales over a short period are often disproportionately impacted by various factors, such as, for example, selling days, days of the week in which holidays fall, timing of new product launches, and the timing of price increases and promotions in retail stores, distributor incentives, as well as shifts in the timing of production. In some instances, our bottlers are responsible for production and determine their own production schedules. This affects the dates on which we invoice such bottlers. Furthermore, our bottling and distribution partners maintain inventory levels according to their own internal requirements, which they may alter from time to time for their own business reasons. We reiterate that sales over a short period, such as a single month, should not necessarily be imputed to, or regarded as indicative of, results for a full quarter or any future period. In conclusion, I would like to summarize some recent positive points. First, the energy category continues to grow globally. Second, we are pleased to report that our pricing actions, which have been implemented to partially mitigate inflationary pressures, have not significantly impacted consumer demand. Third, our AFF flavor facility in Ireland is now providing a large number of flavors to our EMEA region, enabling better service levels and lower landed costs to our EMEA region. Fourth, we are enthusiastic for our 2023 new product innovations, notably Monster Energy Zero Sugar, Ultra Strawberry Dreams, Reign Storm, and Tour Water in the United States, and Monster Energy Lewis Hamilton 44 Zero Sugar in EMEA. Fifth, we are pleased with the early results from the launch of The Beast Unleashed. We are continuing to expand distribution with the goal of being national by the end of the year. Sixth, we are excited by the launch of Nasty Beast Hardcore Tea later this year or early next year, with the goal of national distribution in the first half of 2024, as well as the additional alcohol opportunities that the CANarchy Craft Brewery Collective acquisition presents. Seven, we are pleased with the initial results of our launch of Reign Storm, our new line of total wellness energy drinks. Eighth, we are pleased with the rollout of Predator and Fury, our affordable energy drink portfolio internationally. We are proceeding with plans to launch our affordable energy brands in an additional number of international markets. Ninth, we are excited about the opportunities that the acquisition of the Bang Energy brand presents to us, and believe that the brand will fit well within our broader portfolio of energy drink brands. I would like to now open the floor to questions about the quarter. Thank you. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then 1 on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then 2. In the interest of time, we allow 1 question only. If you have a follow-up, you can rejoin the queue. At this time, we will pause momentarily to assemble our roster. Our first question comes from Peter Grom with UBS. Please go ahead. Thanks, operator, good afternoon, guys. Hope you're doing well. I wanted to pick up on the gross margin commentary and just get a sense for how the quarter kind of came in versus your expectations. This is the first time we haven't really seen the sequential improvement on gross margin in about a year. I know you mentioned, you know, promotions. I think you talked about, you know, you know, other costs, you know, back at the shareholder meeting. Can you maybe just talk about how you see the drivers of gross margin evolving through the balance of the year? Should we still expect to see sequential progression from here? Then maybe bigger picture, can you help frame where we are on the long-term margin recovery journey? Thanks. Peter, the difficult answer to your question is that, you know, we really don't give guidance. If we look at this quarter that we're just reporting, you know, we spoke about some of the drivers behind the improvement in gross margin. Against that, you know, we did have continued increases, and I've said this in previous quarters, in certain ingredients and other input costs, as well as co-packing. That's a factor that, you know, will stay with us. Then we have another, obviously, issue that we spoke about, and that is geographical sales mix. As we sell more product overseas, so the margin reduces overall, the percentage gross margin reduces overall. As you look at the alcohol business building, the gross margins from that side of the business are less than the gross margins that we enjoy in the energy drink sector. You've got, you know, you've got pluses and you've got minuses. You know, the alcohol brands, you'll see in the Q that will be released in a day or so, that the alcohol brands was $60 million of sales, and that margin is lower, and we've reported it as being lower than in the rest of the business. So, you know, overall, there's, you know, there's really is a mix. Then with the Bang product coming in, we expect that, you know, the Bang product will have the same margins as the kinda Ultra products in our own portfolio, the Reign products, the Ultra products, and that, that will improve margins. Overall, there's a, you know, we've got a mix of of positive items that are benefiting gross margins and those items that are detracting from gross margins. Our next question comes from Andrea Teixeira with JPMorgan. Please go ahead. Thank you, good afternoon. Can you comment on where you're seeing the energy category demand perspective from a consumer standpoint? Then related to that, obviously, congrats on the acquisition of Bang. How are you planning to lean even more into this wellness energy category with your organic growth through the in-house Reign innovation? Reign Storm, in particular, continues to grow fast, now Bang adds more presence into that, into that sub-segment. What you can share at this point? I know you're gonna share more in the next on your call, can you talk about how you can participate even more in that category? And if I can squeeze just a clarification about Brazil and Latin America, I think X, Mexico continues to do well, but I was surprised to see a deceleration. I know it's tough comparison where you gain a lot of share in Brazil, but just to make sure that we get those points in. Thank you. If I talk about the energy category as such, you know, we started looking at the one-week data because the community looks at the one-week data. The energy category is still growing, in, you know, good, double digits, 13%, in the last week. We're seeing a good increase in the energy category. As we look at, you know, traditional energy and wellness energy and performance energy, obviously, you know, you've seen kinda differences within those segments. Interestingly, Bang started off life as a very much performance energy. Today, if you, you know, if you look at the brand and you analyze what it stands for, it really stands for a different segment, which is really lifestyle energy. You've got all these different brands that are filling different needs within the energy space. Traditional energy is still growing. You know, I, I did a quick analysis and the traditional energy is still growing, and, and, and the number I'm looking at is around 10%. You've got these other, your wellness energy, and obviously, we are participating in that, in that segment with Reign Storm, with, yeah, which we are really excited about. Then performance energy, where we have Reign, which is doing very well. The difficulty in, in really going deep in deep dive into performance energy is that the Bang brand has suffered because it's lost so much distribution. That's a factor that obviously is driving that segment of the, of, of, of the market. Then, quickly just turning to Brazil and Chile. You know, the, the, the energy category in those countries really grew very rapidly, and we grew extensively within those, those two countries. There has been... We're seeing a little bit of a slowdown in, in, in growth in, in both Brazil and in Chile. We, as, as you can see from the numbers that we reported, we are still market leaders. You know, it's something that is, is, is part of, of, of doing business within, you know, Brazil and in Chile, and we're maintaining our market share. We had product, product issues in Chile, which have now been, which have now been sorted. We're bringing in product from Mexico. We're now able to produce locally in Chile, but the market has taken, you know, somewhat of a slowing in growth, and, you know, we've been as a market leader, we've been part of that as well. The next question comes from Filippo Falorni with Citi. Please go ahead. Hey, good afternoon, everyone. Hi. A few clarification on the, the Bang acquisition. First, can you provide us with, like, the last 12 months sales for the brand? Then, bigger picture, like, how are you guys planning to position the brand in the U.S.? What consumers are you going after? Then internationally, you mentioned the transition to the Coke system in the U.S. Do you plan that also to transition internationally? If you can give us any timeline on that. Thank you. Maybe I can just comment a little bit. You know, pretty much Hilton, I think, covered most of that in his, in his last answer. You know, we are able to look at the brands. If you've seen what how the Bang brand has, in fact, developed, it was originally in a black can. Focused on, you know, sort of focused on, on, on competing with Monster. It then, it then went to a colored can, and then more recently, it went to a white can. Then that white can has gone through a new transition as well. You've then got Reign, which is in a black can, and you've got Reign Storm, which is in a 12-ounce white can. We ha- we see a different way of separating the brands, marketing them differently and positioning, and we think they can all basically fit within our broader portfolio, completely separate to NOS, which is very much a motor sort of brand, Full Throttle and Monster. If you look at that packaging, that's how we do it. We are, we're going to, probably you know, change the packaging slightly, of, of the Bang brand, but it will remain principally, a, a white, can and in a 16 ounce. So we, we feel that there is a way which we, the, all these brands can play quite, you know, with each other within, within, our, our portfolio. The next question comes from Peter Galbo with Bank of America. Please go ahead. Hey, guys. Good afternoon. Thanks for taking the question. I guess if I can just to follow back up on Peter Grom's question and understanding you don't give guidance around, you know, gross margin. I guess, as we looked at it on a gross profit per case basis, you were actually kind of flattish sequentially, so ignoring the percentage, but looking at the dollars. Is that at all a better way to think about the go forward as just as you're managing, you know, managing gross profit per case on a dollar basis relative to the margin? Thanks very much. We always look at gross profit per case. When we launch a product, that's very much part of, you know, the way that this company has always examined new product introductions. Know your costs. That phrase has been something that we've preached for, for any number of years. As we go forward with new products, with new innovation, even, you know, for example, with the, with the Bang acquisition, knowing the costs is, is vital to really being able to position a product within our portfolio. Obviously, some products have lower gross profits per case, like, for example, the coffee products, but they are an important part of it in our portfolio. As we examine products and we examine where we are, we always have to look at what we are delivering to consumers to meet their needs within the overall ambit of a product portfolio. When we went into energy, into alcohol, I'm sorry, we went into alcohol with our eyes wide open. We knew the margins that were in alcohol would be lower than the margins in the energy drink category. We look at margin. I've always said this on calls. I said, "We bank dollars, we don't bank percentages." I've always encouraged our analysts to just think likewise, that we don't bank percentages, we bank dollars. The next question comes from Chris Carey with Wells Fargo Securities. Please go ahead. Hey, good afternoon, everyone. How are you doing? Just one, one quick follow-up there, and then just kind of like a capital allocation question. Would you mind providing the Latin America gross margin on the quarter? Yeah, I, I, I probably missed it, or, you know, I'm not, I'm not sure you gave it, but that would be, be helpful. And just on Latin America in general, is, is there a temporary disruption that we're working through, or is what we're seeing underlying demand? So just, just those two follow-ups. Then, you know, I, I realize this is a multipart question. I'm probably gonna get in trouble, but, you know, just from a, from a capital allocation standpoint, when, when can you start buying back stock again? Thanks so much. Let's talk a little bit about Latin America. Remember, we sell to the distributors, and the distributors sell to the retailers. As the demand is somewhat reduced at retail, the distributors cut back their inventory. If they over-inventorize, they cut back. You know, unfortunately, we, we're the recipient of what happens in the distribution channel. As I said, all of these issues will resolve themselves because you have these cutbacks, but then we go to a more orderly situation, or we should go to a more orderly situation in future quarters. That's, that's where we are. That's where we are in Latin America. The brand is still, as I said, very strong. We, you know, we, we market leaders in Argentina, we market leaders in Brazil, we market leaders in Chile, as very big markets, and market leaders in other countries as well. That's, you know, that's, that's an on- on- answer to that. What I would ask you to do is, you know, listen to the conference call because I don't want to repeat numbers that we've already said. We're already running out of time. The Q will be out in 2 days, and that should answer your questions on Latin America. Our next question comes from Bonnie Herzog with Goldman Sachs. Please go ahead. All right, thank you. Hi, guys. I just wanted to quickly circle back on gross margins and see if you could share, you know, what impact the out-of-orbit issue, you know, that you highlighted during your shareholder meeting, maybe had on margins and whether this issue is now resolved. Essentially, I just want to confirm that you guys are now back working within your orbit? You know, Bonnie, there always will be anomalies, and we're in the middle of summer, as you know, and it's been pretty hot out there, and we're doing our very best to stay within our orbits. There are anomalies from time to time, and our mission, you know, in this company has always been to satisfy our customers. Yes, there will be... We, we, we're maintaining within our orbits, but there, there are times when we will, and we do stray from that. This concludes our question and answer session. I would like to turn the conference back over to Mr. Rodney Sacks for any closing remarks. Thanks very much. On behalf of the company, I'd like to thank everyone for their continued interest. We continue to believe in the company and our growth strategy and remain committed to continuing to innovate, develop, and differentiate our brands and to expand the company both at home and abroad. In particular, capitalizing on our relationship with the Coca-Cola bottling system. We believe that we are well-positioned in the beverage industry and continue to be optimistic about the future of our company. We hope that you all remain safe and healthy and have an enjoyable summer. Thank you very much for your attendance. The conference has now concluded. Thank you for attending today's presentation. You may all now disconnect.