Brian Patrick Holland

Brian Patrick Holland questioned the decline in the selling and marketing line as a percentage of sales and sought insight into the appropriate level of brand support required for the current portfolio moving forward.

Answer

President and CEO Geoff Tanner noted significant increases in Quest advertising, which has shown immediate consumption impact, and planned substantial increases for OWYN marketing to drive long-term growth. He confirmed that Atkins' advertising has been rationalized in line with its business size and trajectory. CFO Chris Bealer added that the company will invest more in marketing throughout the year as opportunities arise to support sustained future growth.

Brian Patrick Holland asked about the trend in selling and marketing expenses as a percentage of sales, noting a significant reduction over time, and questioned what the appropriate level of brand support is for the current portfolio, considering past successes with Quest advertising and current investments in OWYN.

Answer

President and CEO Geoff Tanner expressed satisfaction with the impact of Quest's advertising, noting a substantial increase in spending and an immediate positive impact on consumption from the new campaign rolled out over a year ago. He highlighted a significant increase in marketing investment for OWYN due to its trajectory and customer conversations. Tanner confirmed that advertising spend has been rationalized for Atkins to align with its business size and trajectory, with a mixed shift towards digital and social media. CFO Chris Bealer added that the company will continue to invest more in marketing throughout the year as opportunities arise to support future sustained growth.