Cycle 7 Retail Execution Meeting June 2010

2 Key Messages In 2010, we have a total POS plan of $1.471B, up +8.7% or $118M vs YA CYTD, we’re off to a slow start; with total POS of $602.2M, up +6.5% or +$36.8M vs YA In order to achieve our plan, we now need a strong second half; BOY POS growth must deliver +10% to hit our full year plan All programming, inclusive of a strong second half seasonal plan, is in place to deliver the required BOY of POS We need the Retail Team to execute the following: 281 rollback weeks, or 65% of 2010 plan total weeks Achieve 90% sell thru, to achieve 2 nd half 2010 seasons POS growth of +12.9% With inventories in store and gold standard execution, together we can deliver our full year POS plan of +8.7%

Walmart Key Metrics 2010 POS PLAN2010 CYTD2010 POS BOY 8.7% 6.5% 10.0% 8 Key Everyday Programs 281 Rollback Weeks Halloween & Holiday Sell 90% = 2010 POS ESTIMATE 10.2% Rest of Year

4 Growth has been driven by planned CY performance on Take Home 2010 CYTD POS Dollar Percent Change by Segment Source: Retail Link - Walmart Week

5 POS is estimated to finish +10.2%, +$139M in POS Estimate vs Confections Total = $1.374B, +$137.1M or +11.1% Total = $1.494B, +$138.7M or +10.2%

Walmart Key Metrics 2010 POS PLAN2010 CYTD2010 POS BOY 8.7% 6.5% 10.0% 8 Key Everyday Programs 281 Rollback Weeks Halloween & Holiday Sell 90% = 2010 POS ESTIMATE 10.2% Rest of Year

7 Retail inventories are in place and are up +28.1% placing future programs & SSO’s at risk Hershey Confectionery Retail Dollar Inventory Snapshot Source: Retail Link - Walmart Week Inventory up +28.1% or $25MM

8 Impulse inventory is up +34% driven by King, Mint Tins and Big Pack (IB) Gum Hershey Impulse Inventory by Packtype Walmart vs Source: Retail Link

9 Take Home inventory is up +25% driven by increases on 6-packs, 8-packs, CPC 40 oz and Giant Bars Hershey Take Home Inventory by Packtype Walmart vs Source: Retail Link

10 24/26 On Hand Retail DAILY Inventory and POS $ Source: Retail Link 24/26oz Syrup inventory has enabled significant retail activity and is currently up +36% vs LY Memorial Day LY 5/25/09 – Wk 17

11 Everything is changing… Retail execution is more aggressive and not necessarily driven by Home Office

12 You’ve already demonstrated our ability to win in the changing operational environment

13 84% of BOY everyday promotional volume will be driven by 8 key programs BOY POS $ Promotional Volume (M)

14 The rollback plans are on track with 149 of 430 weeks completed and 65% or 281 weeks remaining Executed To Be Executed Promo Packtype Current Total CPC 12 oz Packs Packs22814 CPC 40 ozEDLC Twizzlers 16 oz Giant/XL Bars21714 Theatre BoxesEDLC Cartons2613 Bliss Pieces BS Roll 8-Packs160 Totals King Size Standard Bars21813 Gum and Mint1275 Grocery % to be executed

15 Cycle 7 Key Promotional Programming

16 Leverage all elements of the S’mores program to secure multiple display locations for the peak season July 4th Wave 3 (27% of order) PEAK SEASON Weeks 10-32

17 July 4th The Syrup Rollback is being supported with 106K of Bonus, an FSI, Walmart TV and COMAC (20-23) Weeks Wave 2 (106K Cases) Walmart TV

18 July 4th Weeks Packaged Candy Rollback has been extended into September to drive POS $’s with Hershey’s #2 packtype National TV Brand Advertising SSO

19 July 4th The Standard Bar rollback is planned to drop week 21 supported with an SSO and Brand Advertising Weeks Tray 1Tray 2Tray 3 Wave 1 National TV Brand Advertising Wave 2

20 July 4th YTD King Size is +27.3% and will be supported with an SSO the first week of Cycle 7 National TV Brand Advertising Weeks 1-39 Tray 1Tray 2Tray 3 SSO

21 July 4th SSOFSI Ensure execution of the week 21 Twizzlers SSO to capitalize on the FSI and the July 4 th Holiday National TV Advertising Weeks 5-48

22 July 4th Yearlong EDLP YTD 8-Packs are +46.9% generating almost $46M in POS making it Hershey’s #1 packtype National TV Brand Advertising SSO

23 July 4th Continue to drive Theater Box POS $’s by cross merchandising with other $1 packtypes National TV Advertising SSO

24 Cycle 7 Additional Programming

25 July 4th National TV Advertising SSO COMAC Our Yearlong Pieces EDLP will be supported with COMAC and SSO’s prior to the July 4 th Holiday

26 July 4th Ensure continued execution of the Gum & Mint PDQ’s as it is critical to the overall success in D82 National TV Advertising Tray 1Tray 2Tray 3

27 July 4th Continue to execute the Giant Bar PDQ’s and place manual orders where necessary National TV Brand Advertising Weeks 12-22

28 Continue to secure/maintain secondary display activity on the entire Bliss line Weeks July 4th National TV Advertising

29 Example of Gold Standard retail execution in preparation for the Fourth of July Holiday Syrup in Dairy Cooler Syrup Saddle Bag RackKing Size FE ECSmores Train Action Alley Stack Base Smores & $1 Bars (KS or 8 pks) COMAC American Summer Aisle Smores & Twizzler Bodega EC Summer Aisle Syrup Bodega End Cap CPC Grocery EC 8 pks Cart RailGiant Bars FE EC40 oz. CPC FE ECIB Gum/mint FE EC Theater Box in Electronics Target execution for weeks 21-23

Walmart Key Metrics 2010 POS PLAN2010 CYTD2010 POS BOY 8.7% 6.5% 10.3% 8 Key Everyday Programs 281 Rollback Weeks Halloween & Holiday Sell 90% = 2010 POS ESTIMATE 10.0% Rest of Year

31 Second half 2010 seasons will deliver +12.9% POS growth at a 90% sell thru level Walmart Seasonal POS ($M) 2009 versus 2010 Estimate Assumes Sell Thru of 90% for 2010 Halloween and Holiday programs

Walmart Key Metrics 2010 POS PLAN2010 CYTD2010 POS BOY 8.7% 6.5% 10.0% 8 Key Everyday Programs 281 Rollback Weeks Halloween & Holiday Sell 90% = 2010 POS ESTIMATE 10.2% Rest of Year

33 Base Business Distribution on all authorized items for the store (tagged, in-stock, correct # of facings) Rollback signage on all Rollback items Cycle 7 Key Programs S’mores, Syrup, CPC 12oz, and 2/$1 Standard Bar Rollbacks Presell execution of all SSO quantities Leverage FSI, TAB, and COMAC where applicable Maximize display space with executions across all key programs Use good business judgment when placing manual orders to maintain displays Target secondary locations to sell thru residual promotional product Yearlong Rollbacks/EDLP’s Twizzlers, King Size, Bliss, 8pk/Theater Boxes, and HSY Pieces 8pks, Bliss, King Size - Utilize the merchandising sheets to punch in everyday items to obtain or maintain your “A” displays Ensure 100% distribution/in-stock on all items on the side counter Place rollback signs on all items Ensure execution on all SSO’s in “A” display location when product arrives Utilize POS reports and place manual orders to maintain displays Cycle 7 Action Plan