Molson Coors Brewing Company (NYSE:TAP) recently reported its fourth quarter earnings and discussed the following topics in its earnings conference call.
European Market Dynamics
Judy Hong – Goldman Sachs: I guess I just wanted to get a little bit more color on Central and Eastern Europe. I think you’ve talked about some of the competitive dynamics in some markets. But broadly speaking, kind of what are you seeing from a macro perspective for the category as a whole, a little bit more color in terms of the markets where you’re gaining share, what you are doing differently in those markets? And then, just the profit decline in the fourth quarter was also a little bit surprising to me in Central Europe, so kind of from a profitability perspective if you can help understand what drove the decline in the quarter?
Peter Swinburn – President and CEO: Sure. So, Judy, I think I’ll take the first part of the question and I’ll pass the second part on to Mark to give you the sort of granularity. I think really we covered it off in the script. I mean, on a relative basis, this business is performing exceptionally well. As I said, we’ve taken market share in Bulgaria. You ask why, I mean, obviously, that’s down to execution and the strength of our brands. We’ve got the highest market share ever in Croatia when we got activity coming forward there that we’re very pleased about in terms of new bottles. Czech Republic, we’ve gained share in a difficult on-trade market and done well generally in that market. We’ve grown share in every single market apart from Romania and Mark can speak to that in a second, and we got double-digit growth in Staropramen which is our core brand in that. So, yeah, I’ll call above-premium brand in that market. So, overall, that’s a very strong set in a relatively difficult environment. So, overall very pleased with it. The quarterly results have some detailing which need explaining. So, I’ll pass that over to Mark – and Mark, maybe you can make reference to what’s going on in Romania as well.
Mark Hunter – President and CEO, Molson Coors Central Europe: Sure. Judy, just a couple of builds on Peter’s comments and I will talk specifically about the fourth quarter. I mean, I think on the Q3 call I was very clear about the fact that we’re seeing certainly from a GDP perspective lower growth rates and we’re anticipating that that’s having a direct impact on overall beer consumption, and in fact, on a full year basis, there were only really two markets that showed any volume growth; the Romanian market and the Bulgarian market and as Peter said, we’ve taken market leadership in Bulgaria, which is great news. In Romania I mentioned in Q3 that most of the growth in the market was coming in the very low margin value segment. We chose not to participate in Q3 and we’ve continued not participating through fourth quarter, with our focus really being on our core brands and our premium brands because we believe that will give the business long-term sustainability. If you actually look at the specific profit numbers in the fourth quarter, in local currency, we were down about 5%. So, we’ve been running the business now for two quarters. We posted strong growth in the third quarter. In the fourth quarter, we were down 5% in local currency and I took two decisions through the fourth quarter which impacted on that. It was clear as the business left 2011 significant stock had been pushed into the market in both Romania and Serbia and I took a decision to destock the distribution pipeline. That cost us in profit terms a couple of million euros. So, if you actually add that back on to our Q4 numbers then it gives us a much more solid position in the fourth quarter and it sets us up for I think all of the right behaviors and actions as we into 2013 building on the back of what has been sheer growth in every one of our major markets with the exception being the Romania market for the reason I’ve described. So, hopefully, that gives you a little bit more color to both the profit number and just some of the volume trends.