Packtype Reference Guide March, 2011

2 Standard Bars$ 895$ % King Size$ 473$ % CPC$ 598$ % SUBs$ 68$ % 8-Packs$ 286$ % 6-Packs$ 198$ % TH Bars$ 180$ % Big Box$ 84$ % TOTAL$2782$ % Focus Pack Performance Projections Packtype * % Δ Focus Packtypes are over 60% of THC volume and projected to grow +6.4% YOY in 2011 * March 2011 consensus estimate

3 Hershey’s is the Instant Consumables market share leader IC Candy / Market Share FDMxC 52 Week Ending 2/19/11 Source: Nielsen IC Candy / $ Chg FDMxC 52 Week Ending 2/19/11

4 Standard Bar/ King Size Multiple candy purchases in the same trip –81% of candy trips are made where both IC and TH candy is purchased Once a candy buyer decides to make a purchase, 85% will make the purchase and not consider any alternative items such as salty snacks Brands matter - Reasons for impulse purchases: –Noticed packaging of favorite brand and immediately developed a craving for it Source: Nielsen HomeScan Panel 1/09 ; SmartRevenue Aisle study 2007 ; 2008 C-Store Close-up (Meyers Research) Quick Facts Usage Merch Strategy Key Insights Purchase decision process –Usage occasion Reward Comfort Escape from boredom –Choose brand From personal menu Brand fits need state Variety critical –Pack-type pre-determined Primary Consumer: 91% of purchases are for themselves 86% of bars purchased are consumed within 30 minutes When consumers can’t find what they want, 25% will walk away from the purchase Display in high traffic locations –75% of purchase decisions are in-store –Create displays with Brands consumers are familiar with

5 Hershey’s is the Take Home market share leader TH Candy / Market Share FDMx 52 Week Ending 2/19/11 Source: Nielsen TH Candy / $ Chg FDMx 52 Week Ending 2/19/11

6 Chocolate Packaged Candy Multiple candy purchases in the same trip –70% of large bag consumers bought something else – other CPC, Standard Bars & Snack Size –60% of small bag consumers bought something else – other CPC, Standard Bars & 8pks –31% of CPC purchasers buy more than one bag per shopping trip across Multiple Sizes Brands are the key purchase drivers –50% of shoppers will not substitute brands when they can’t find their favorite Source: Lieberman Take Home A&U September 2008 ; Candy Dish Omnibus2008; Nielsen Total US FDMx -52 week ending 4/17/10 Quick Facts Usage Key Insights Candy Dish –60% of consumers own a candy dish –Prefer wrapped –Candy Dish users eat more than non candy dish users Self Indulgence/Reward Portion Control HSY Share: 41.2% Sales Gain: +4.0% Primary Buyer: Female Average bag lasts 7 days Display in high traffic locations –72% of brand decisions are in-store Rotate features between 10-12oz and 17-20oz Bags Create Candy Dish Displays around core CPC Brands and also Trade Up CPC Merch Strategy

7 Hand To Mouth SUBs HTM is differentiated from Wrapped Candy –Hold in your hand –Small pieces –Portion size control –Focused on “Fun Nibbling” Quick Facts Usage Key Insights At Home and On the Go Snacking Core consumer is adult yrs looking for iconic brands in a snackable form HTM products fulfill the following functional needs: –Bite-sized –Fun and convenient to eat –Easy to share –Resealable package Hand-to-Mouth (HTM) represents over 16% of total chocolate sales The H2M segment grew $19.5M or 9.5% vs. PY PIECES drove 67% of H2M segment growth Capitalize on growing H2M segment by placing Mods and Shippers in high traffic locations Source: Lieberman Take Home A&U September 2008 ; Candy Dish Omnibus2008 FDMx IRI ending 4/19/09 Merch Strategy

8 Trade Up CPC HERSHEY’S BLISS Trial and Repeat continues to outperform new product norms –Brand Awareness is 70% for Targeted users and is growing Multiple candy purchases in the same trip –Consumers purchase Trade Up CPC and other candy items in the same trip Brands are the key purchase drivers –50% of shoppers will not substitute brands when they can’t find their favorite Source: Lieberman Take Home A&U September 2008 ; Candy Dish Omnibus2008 FDMx IRI ending 4/19/09 Quick Facts Usage Key Insights Small Personal Reward Candy Dish –60% of consumers own a candy dish –Prefer wrapped –Candy Dish users eat more than non candy dish users Sharing Portion Control Trade-Up Everyday CPC is a $230M category –Bliss represents a 12.1% share of TU CPC Trade-Up brands account for 18% of Packaged Candy Primary Buyer: Female Trade Up Packaged candy grew at double digit rates Average bag lasts 8 days Display in high traffic locations –72% of brand decisions are in-store Create Candy Dish Displays around core CPC Brands to include Trade Up CPC Merch Strategy

9 8-Packs Variety and value are the primary drivers motivating 8-Pack purchasers to buy multiple brands during their shopping trip Value –92% of consumers consider 8-Packs a good/very good value. Source: Lieberman Take Home A&U September 2008 ; Spectra Behavior Scope 2007; Nielsen Total US FDMx -52 week ending 4/17/10 Quick Facts Usage Key Insights On the Go Activities Family Snacking and lunch treats Portion Control –Ability to provide variety and brand favorites for everyone HSY Share: 49.5% Share Gain: 0.1% Primary Buyer: Moms & heads of households with kids Consumers purchase multiple 8-Pack brands during their shopping trip Hershey’s 8-Pack brands command a 50% share of all 8-Pack in-store merchandising Display 8-Packs in multiple, high-traffic locations Merch Strategy

10 6-Packs Multiple candy purchases in the same trip –68% of consumers who purchased a 6-Pack, purchase another packtype during the same shopping trip Value –89% of consumers consider 6-Packs a good/very good value based on a per bar comparison to Standard Bars (everyday and promoted prices) Source: Lieberman Take Home A&U September 2008 ; Spectra Behavior Scope 2007; Nielsen Total US FDMx -52 week ending 4/17/10 Quick Facts Usage Key Insights S’MORES and Family Activities Family Snacking and lunch treats Portion Control –Ability to share with family members and friends –Individually wrapped servings HSY Share: 82.5% Share Gain: +3.1% Sales Gain: +5.9% Primary Buyer: Head of Household with older kids Consumers keep on average two 6-Packs in household inventory Grocery & Mass account for 82% of 6-Pack retail volume 49% of 6-Pack volume is sold with quality merchandising support Display Hershey’s 6-Packs May – Sept to support S’MORES Season and family activities Merch Strategy

11 XL/Giant Bars Multiple candy purchases in the same trip –63% of consumers who purchased an XL bar, purchase another packtype during the same shopping trip –Standard Bar, Snack Size, and Peg Bag were the most commonly purchased packtypes Value –91% of consumers consider XL Bars a good/very good value Source: Lieberman Take Home A&U September 2008 ; Spectra Behavior Scope 2007; Nielsen Total US FDMx -52 week ending 4/17/10 Quick Facts Usage Key Insights Movies and Snacking Personal Snacking Portion Control –Ability to share with family members –Resealable package HSY Share: 87.5% Consumers age 45 & older account for 69% of XL volume Consumers keep on average two XL bars in household inventory Display in high traffic locations –72% of brand decisions are in-store Display in secondary locations to increase consumer awareness and create impulse purchases Merch Strategy

12 Big Box 93% of consumers who purchased a Big Box, purchase another packtype during the same shopping trip - Standard Bar, 8-Pack and Peg are the most commonly purchased packtypes Product uniqueness and variety are primary drivers motivating Big Box purchases Value –88% of consumers consider Big Boxes a good/very good value Source: Lieberman Take Home A&U September 2008 ; IRI FDMx 52 wk ending 4/19/09 Quick Facts Usage Key Insights Movies and Snacking Watching movies/going out to movies Portable and pourable on-the-go snacking Portion Control Top 4 selling Big Box brands: –Good & Plenty –Milk Duds –Whoppers –Reese’s Pieces 36% of consumers purchase Big Boxes when not on sale –Variety –Unique candy type Cross-Merchandise in secondary locations: –Movie rentals –Pharmacy Display in high traffic locations –75% of purchase decisions are in-store Merch Strategy

13 % Vol Inc. by Merchandising Condition FDMx - 52 Wk ending 2/19/11 Source: Nielsen Merchandising generates significant lift for both IC and TH packtypes

14 Hershey’s drives more Instant Consumable display sales than competition IC / Dollar Sales, Any Disp. FDMx - 52 Wk ending 2/19/11 Source: Nielsen

15 HERSHEY’S IC mods trigger impulse purchase and are easy to shop and refill 2-sided unit provides improved product presentation Shoppable from all layers High impact brand graphics 4-sided, shoppable merch unit High impact brand graphics Easy to shop and refill birdfeeder trays

16 Hershey’s drives more Take Home display sales than competition TH / Dollar Sales, Any Disp. FDMx - 52 Wk ending 2/19/11 Source: Nielsen

17 HERSHEY’S TH mods trigger impulse purchase and are easy to shop 2-sided unit provides improved product presentation Shoppable from all layers 2-sided, shoppable, stackable DRC’s New high impact side panel graphics Easy to refill and maintain using new stackable DRC’s

18 HERSHEY’S new Std Bar/CPC mods blend the top selling packtypes in IC and TH 2-sided, shoppable, stackable DRC’s and birdfeeder trays High impact, branded side panel graphics Easy to shop and refill both sides