Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from the line of Bob Labick. Your line is open.
Robert Labick – CJS Securities
Good morning. Congratulations on a strong quarter. Can you hear me?
Stephen B. Hughes
Yes.
Robert Labick – CJS Securities
Okay great good morning.
Robert S. Gluck
Thanks Bob.
Stephen B. Hughes
Thank you.
Robert Labick – CJS Securities
First question I want to ask, if you could maybe expand just a little bit on your guidance for the first half, as it relates to the volume growth versus pricing and in that explanation if you could you also just remind us the explanation differentiation between above the line marketing, and below the line marketing. So, it's clear where price comes in, volume comes in, and then that the change in your couponing, which is above the line versus other marketing, which maybe below the line. If you could kind of tie all together for the first half as it relates to first half guidance it could be helpful?
Stephen B. Hughes
Well I think that, starting with the differential on pricing versus unit growth. We're going to be lapping the price increase in February lapping one in June, and so we are going have probably about we would say about 15-point differential.
Robert S. Gluck
Yeah in pricing.
Stephen B. Hughes
In pricing between dollars and units. We obviously feel good about the unit trends we saw in the second half, and then coming going into coming out of the year, we feel we have got some unit good momentum. But clearly we will begin to [have] those price increases relative to our marketing spend.
Robert S. Gluck
Yeah I will take the question on the splits. So Bob as it relates to what’s above the line essentially between our gross and net sales, we have all our trade spending and importantly from a consumer-marketing standpoint, we also have our coupon redemption costs. So, that's above the line, and below the line marketing essentially is our media our other operating cost as it relates to insertion cost for marketing, market research.
Stephen B. Hughes
Agency fees.
Robert S. Gluck
Demos, agency fees and so on so forth.
Robert Labick - CJS Securities
Great. Very helpful. And then just moving on to a bigger picture question. As it relates to the sale of spreads obviously you said you recently launched milk for New York and Boston. How the spreads sales fared in those markets versus the other markets where you haven’t expanded milk. Could you talk about any early indications of sale synergies from this marketing?
- To read the full transcript on Seeking Alpha, click here »
