State of the Confectionery Industry

Second half growth carries category Retail Sales – IRI 52 Weeks June % December % Manufacturers YTD Shipments June % Lbs.+1.4% $ December % Lbs+3.2% $

Total$24.8 Billion Chocolate$13.5 Billion Non-Chocolate$7.6 Billion Gum$3.0 Billion NCA Estimates base on U.S. Dpt. Of Commerce 311D Report 2003 Retail Confectionery Sales

Candy & Gum Retail Performance Total Candy & Gum+2.2%+1.5% +2.9%+3.3% Supermarkets % +1.5%+2.4% Mass & Wal-Mart+0.9%-0.8% +6.7%+6.3% Drug Stores+4.4%+5.3% +0.8%+0.3% Convenience+5.5%+3.5% +6.1%+7.3% IRI $ Sales as of 12/28/03

Candy & Gum Retail Performance 2003 Sales Results Category52 Week52 Week $ Sales% Change Chocolate$5.5 billion+ 1.7% Non –Chocolate$3.3 billion+1.8% Gum$1.2 billion+5.5% Total Candy and Gum$10.0 billion+2.2% IRI $ Sales as of 12/28/03 FDM&W

Trade Class 2003 Growth Channel$ Sales% Growth Supermarkets$ % Convenience Stores$ % Drug Stores$ % Wal-Mart$ % Mass X Wal-Mart$ % Warehouse Clubs$4.0*+4.0% Dollar Stores$.7*+7.0%

Seasonal Confectionery Trends VALENTINE’S -7.6%+6.5%-0.5% +4.7% -2.1% +7.9% EASTER +2.2%-2.2%-2.4% +11.0% -0.1% +10.5% HALLOWEEN +0.7% -0.4%+0.2% +4.7% +6.1% +4.6% CHRISTMAS -1.4%-3.0%+0.7% +1.7% -0.8% -2.9% * IRI FD&M

Candy & Gum Retail Performance 2003 Sales Results 12/28/03 Confectionery+2.2% Chocolate +1.7% Everyday Sales+4.3% Seasonal Sales-2.7% Non-Chocolate+5.1% Everyday Sales+5.1% Seasonal Sales-3.2% Breath Fresheners-10.6% Gum+5.5% IRI $ Sales as of 12/28/03 FDM&W

Non-Chocolate Year Non-Choc Per Capita Breath Fresheners % % % * $91 million * 3% of Non-Choc Hard Candy $50 million Soft/Chewy Candy $180 million Chocolate -even

Candy and Gum Ranked 3rd Among 2003 Food Categories IRI Food, Drug & Mass Excluding Wal-Mart 12/28/ %

Candy and Gum Ranked 1st Among 2003 Snack Categories IRI Food, Drug & Mass Excluding Wal-Mart 12/28/03

Candy & Gum 2003 Manufacturer Performance Domestic Production and Imports December 31, 2003 $ Lbs. % Change Billions Billions $ Lbs. Total Confectionery $ %+3.0% Chocolate Candy $ % +1.2% Non-Chocolate Candy $ % +5.3% Gum $ % +3.2% U.S. Department of Commerce Data

Candy & Gum 2003 Manufacturer Performance Domestic Production Only December 31, 2003 $ Lbs. % Change Billions Billions $ Lbs. Total Confectionery $ %-0.5% Chocolate Candy $ % -0.2% Non-Chocolate Candy $ %-0.3% Gum $ %+0.8% U.S. Department of Commerce Data

Non-Chocolate Import Growth Non-Choc.Non-Choc.Non-Choc.Non-ChocNon-Choc Retail NCA/CMAImport ImportsImports % YearGrowth %ShipmentsGrowth % of Totalof US Production * %-0.3%+21.3%30.1%40.1% %-5.5%+15.2%26.7%33.4% %-1.2%+10.4%21.0%24.4% %-4.3%+9.9%19.2%21.8% %-3.3%+19.3%17.1%19.6% %-1.1%+17.7%13.9%14.9% %+8.8%+7.6%11.7%12.4% %+5.8%+8.5%10.7%11.4% 2003 Estimates 2002 U.S. Department of Commerce

Confectionery Imports & Exports CategoryImportsExports 2003 $ Growth 2003 $ Growth Confectionery$1, % $ % Chocolate $ % $ % Non-Chocolate $ $ % Gum $ %$ % Global Trade Atlas November 2003

Confectionery Imports Trading Partner2003 ShipmentsGrowth World$1, % Canada$1, % Mexico $ % UK $ % Germany $ % Brazil $ % Belgium $ % China $ % Netherlands $ % Argentina $ % Switzerland $ % Sales in $millions January – November 2003

Confectionery Exports Trading Partner2003 ShipmentsGrowth World$ % Canada$ % Mexico $ % Japan $ % South Korea $ % UK $ % Germany $ % Philippines $ % Taiwan $ % France $ % China $ % Sales in $millions January – November 2003