00:00Well, it is really a whole ecosystem that we manage with very close partners.
00:06We are mostly hatched. We have our facility and our various commodities hatched.
00:13And then we also have a very local sourcing program.
00:17In fact, 95% of our locally sourced ingredients are done local.
00:23And then we also have a very solid program that we actually work with strategic partners
00:29that we actually manage on a multi-year basis.
00:32How far out are you hedged on certain key ingredients?
00:35I mean, I think one of your biggest crops that you buy is potatoes locally.
00:39But I mentioned sugar. And then there's the fertilizer.
00:42We don't know how long this turmoil is going to last.
00:45Yeah, no, we're definitely watching the situation very, very closely.
00:50In fact, we are one of the largest potato growers or partners to our local growers.
00:55So we are very confident that we are very resilient when it comes to upstream supply.
01:02Well, we talked broadly about innovation that you've implemented.
01:06But how specifically do you use AI?
01:09We use AI in every part of the value chain, really.
01:12I mean, if we think about at the very upstream agro, we use tech to help us do precision agriculture.
01:20So the irrigation, the fertilization, all this will be done with precision using AI to help us to track the
01:28crops.
01:28Certainly in the factory, we're using AI and digital twins for us to drive precision, quality,
01:35and then obviously productivity in the value chain.
01:38We're using AI to help us scout consumer new trends, social listening.
01:43And then we're using AI to help us create and mass edit and mass customize our consumer material as well.
01:51So it's done every part in the value chain.
01:54How about food manufacturing, though?
01:56It helps with efficiency, but does that mean fewer people?
02:00It is not absolutely fewer people, but it's actually the people are being upskilled,
02:05and then they are deployed across more facilities.
02:08Remember, we have five manufacturing plants in China over the last five years.
02:13We were able to service these plants without having to add a whole lot of people,
02:17but then at the same time, we are actually upskilling our folks.
02:20Are you going to be adding more factories in China or just making those existing five more efficient?
02:25We will be making the five more efficient for the short time because it is quite a bit of capacity
02:32that we added over the last couple of years.
02:34But the market is huge, so we will be adding more in the future as we see the demand shore
02:39up.
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