Sales Growth Confidence
Q: Why greater confidence in achieving higher end of sales guidance?
A: We had a strong first quarter with sales exceeding expectations, giving us confidence to achieve the mid- to high end of our constant currency sales growth range for the full year. " We drove sequential volume improvement in our core categories, especially spices and seasonings. " Investments in brand marketing, new product launches, and targeted price gap management are performing well. " We expanded margins and accomplished the things we set out to do, contributing to our confidence for the rest of the year. "

Americas Consumer Volume Outlook
Q: Will Consumer Americas volumes improve sequentially and turn positive?
A: In Q1, Americas consumer volume declined by 2.6%, mainly due to the DSD exit and declines in prepared food categories. " Excluding these factors, volume growth would have been flat to slightly positive. " Growth in spices and seasonings was healthy but offset by declines in mustard and hot sauce. " We expect volumes to continue improving sequentially and to drive volume growth in the second half of the year. " "

China Segment Performance
Q: How are China Consumer and Flavor Solutions performing?
A: China met our expectations in Q1 for both Consumer and Flavor Solutions segments. " Our outlook for China Consumer remains cautious due to factors like youth unemployment and reduced consumer confidence. " Smaller independent restaurants are losing traffic to larger QSR chains, affecting our Consumer segment. " However, we expect our Flavor Solutions business in China to be stronger in 2024, driven by the growth of established QSRs. "

Flavor Solutions Volume Fluctuations
Q: Are there anticipated headwinds for Flavor Solutions in Q2?
A: While we saw positive volume growth in Flavor Solutions in Q1, some regions like EMEA face headwinds due to variability in customer activity. " We expect possible setbacks in Q2 but anticipate volume growth in the second half of the year. " The business can fluctuate due to factors like new product launches and foot traffic at QSR customers. "

Spices and Seasonings Share Gains
Q: What's driving unit share improvement in Spices and Seasonings?
A: Unit share gains are driven by new packaging increasing on-shelf velocity, recapturing distribution points, and increased advertising. " The rollout of new packaging is progressing and expected to be complete by end of Q2. " These efforts led to unit share gains at the end of the quarter. "

Second Quarter Margin Outlook
Q: Why modest gross margin improvement expected in Q2?
A: Q2 is an inflection point with less pricing benefit as pricing actions decrease from 2.7% in Q1 to 1% for the year. " We're activating more price gap management and increasing A&P investments, which puts pressure on margins. " Volume improvements are expected but not enough to offset reduced pricing benefits in Q2. " We anticipate stronger margin improvement in the second half. "

Price Gap Management Scope
Q: What percent of the portfolio is under price gap management?
A: Our price gap management efforts target less than 15% of our Americas portfolio, specifically in Spices and Seasonings and Recipe Mixes. " These actions are precise and SKU-specific. " We are comfortable with the current scope and constantly evaluate the need for adjustments. "

Hot Sauce Trial Sizes
Q: How are $1 trial sizes impacting the hot sauce category?
A: Trial sizes at $1 price points have driven significant unit growth and added new users to the category. " While it pressures our unit share, it's positive as it brings new households into the category. " We are evaluating offering our own trial sizes and increasing brand marketing and innovation, particularly for Frank's and Cholula. "

Outlook for Mustard and Prepared Foods
Q: What are the plans to improve mustard and prepared foods categories?
A: In mustard, low price points from private labels have impacted consumption. " We plan to increase promotional programs, especially during the grilling season, and strengthen distribution to improve trends. " Prepared foods is a smaller, non-core part of our portfolio; we are monitoring trends and managing the portfolio accordingly. "

Shelf Resets Impact
Q: Will shelf resets lead to incremental shipments in Q2?
A: We view gains in total distribution points (TDPs) as incremental to our market presence. " While shelf resets will benefit us, their impact is already factored into our outlook. " The new packaging rollout isn't expected to cause a significant shipment spike but will improve velocity over time. "

Discrepancies in Tracked Data
Q: Why is there a difference between tracked data and reported sales?
A: We rely on Circana data, which provides a broader view of our categories compared to Nielsen. " Differences may arise due to variations in how categories are captured. " Strong growth in e-commerce and performance in Canada and Latin America also contribute to discrepancies. "

Mexico JV Performance
Q: How did the Mexico JV perform, and what's the outlook?
A: Our joint venture in Mexico had a strong Q1 with 50% growth, partly due to comping against a weaker quarter. " It's too early to adjust our full-year guidance of mid-teens growth. " The business is profitable with strong brand positions, and we export products like mayonnaise to the U.S.. "

Interest Expense Guidance
Q: What's the outlook for interest expense?
A: We didn't provide specific guidance as it's not material; we expect it to be roughly equal to the first quarter and do not anticipate significant changes for the year. "