Question-and-Answer Session
Operator
Thank you sir. (Operator Instructions) Our first question comes from the line of Judy Hong with Goldman Sachs. Please go ahead.
Judy Hong - Goldman Sachs
Thanks. Hey, Rodney.
Rodney Sacks
Hi.
Judy Hong - Goldman Sachs
Rodney, I am just trying to reconcile your sales growth in the quarter because it seems like that there are a lot of moving parts in the quarter. So, first you have the 12.8 million of deferred revenue that you got that was booked in the quarter. You also called out for 7 to 8 points of sales that benefited you in the fourth quarter of 2007 as the trade loaded up on inventory before the price increases.
Rodney Sacks
Right.
Judy Hong - Goldman Sachs
Was there any, I think you have talked about taking back some of the inventory from your existing wholesalers in the fourth quarter with the transition. Was that part of what happened in the fourth quarter sales number?
Rodney Sacks
Yes. That is a 9.7 million figure I referred to.
Judy Hong - Goldman Sachs
So 9.7 million that you have taken back from the existing wholesalers. So that runs against your sales in the fourth quarter.
Rodney Sacks
Right.
Judy Hong - Goldman Sachs
Okay. And then, in terms of your comment about that you are not seeing any improvement in the convenience and gas channel in the early part of this year that sounds a little bit different than what the other beverage companies have talked about, when they reported the fourth quarter results.
So I am just trying to see, what you are seeing, and more specifically, in some of the premium non-carb category with respect to CNG channel, and if you are seeing actual improvement in CSP, but, maybe the consumers are holding back on some of the higher price point beverage products.
Rodney Sacks
We are seeing the energy category sales increase being pretty constant in the category was increasing in the 30% range or higher than that. There is 40% range in the second quarter, 30% range and it was sort of falling off in the third quarter, into the 20s and then high teens. In the fourth quarter, it really has been pretty consistent; there was a little bounce in November.
But our numbers are showing the category in convenience, for example, as being 13.5% up in the four weeks ended October 2008 went back up to 14.9 which is still way up where we had been in September – in November and in sort of going down to about 13.3 in December. And it has been even now, it is January numbers are coming in at about flat at that level about 13.3. So we are seeing the numbers still staying down there.
- To read the full transcript on Seeking Alpha, click here »
