1 September 2-3, Cycle 10 Retail Execution Meeting

2 Key Messages Winning at Walmart is critical to Hershey’s success. Our combined efforts have delivered CYTD results +16.0% versus prior year and core packtype conversion of 110%. Implement current department 01 headquarter merchandising programs during cycle 10 & when programs sell down, transition all displays to Snack Size, Jumbo Snack & Assortment Bags. Maintain all department 82 execution throughout Halloween Executing the 2009 Halloween strategy is critical to achieving the 92% sell thru goals in both $ & units. Hershey’s baking chips will be the opening price point at Walmart; however, due to aggressive retails of Nestle at $1.98 during the baking season, Hershey will not be the featured baking chip. Pre-selling execution of the Fall Baking program is vital to the success of this $38M season

3 3 CYTD performance is 16.2% over prior year; 5.2 pts over the plan performance Hershey Confectionery POS Dollar Percent Change Source: Retail Link - Walmart Week (WE August 14, 2009)

4 4 CYTD performance is driven by strong Seasonal and Impulse performance POS Dollar Percent Change by Segment CYTY impacted by: TH CPC oz. = +19.5% TH Pkg Choc > 30 oz = +33.5% TH Molded Bars = +38.8% IC King Size = +77.4% IC Standard= +14.6% Source: Retail Link - Walmart Week (WE August 14, 2009)

5 Overall unit conversion 110% & is being driven by 2/$1 Std Bars & $1 King Size Rollbacks Unit Conversion Trends CYTD

6 CYTD Area POS Change ($M) Thanks to flawless execution by the retail team, HSY POS is +$107M vs. YAGO Source: Retail Link - Walmart Week (WE August 14, 2009)

7 District % vs. Plan All district’s in the Northeast and South areas are over plan Source: Retail Link - Walmart Week (WE August 14, 2009)

8 District % vs. Plan All district’s in the Central and West areas are over plan Source: Retail Link - Walmart Week (WE August 14, 2009)

9 9 Hershey Confectionery POS ($M) YTD and Calendar Year Source: Retail Link - Walmart Week (WE August 14, 2009) To date POS is at 56% of the WM stretch plan target and will require a minimum ROY growth level of 16.6% Total WM POS plan is +16.4%

10 Momentum must be maintained through critical 2 nd Half promotions Walmart 2 nd Half Promotional POS ($M) Estimates Promotional $’s are 63% of our 2nd half POS plan of +16.4% Programs highlighted in gold are the focus priorities during cycle 10

11 It is critically important to deliver against the key growth drivers Walmart 2 nd Half Promotional POS ($M) Growth Estimates Programs highlighted in gold are the focus priorities during cycle 10

12 Program Highlights 2 TABS October 4 th – Harvest Assorted Miniatures October 24 th – Tick or Treat focus, item featured TBD FSI FSI – September 27 th Incremental FSI – October 18 th $1 off with the purchase of 3 snack size bags Advertising GRP’s increased over 33% on core & seasonal brand ads Concentrated on last 4 weeks of the season Retail Execution Contest August – October Winning district’s & RSR’s will include sell thru and displays metrics 2009 Halloween Merchandising Support Current FSI 9/27 Incremental FSI10/18

13 National FSI Support – 9/27 & 10/18 –$1.00 Off 3 Bags – 50 MM Circulation 2009 Halloween Support National TV Support – 5 weeks; 9/28 – 10/31 – Supported at growth level GRP’s – Hershey’s, Kisses and Reese’s advertising Reese’s Halloween specific creative 10/18 9/27 Incremental Vs. ‘08 Walmart Co-op Details: (creative TBD) Print - 9/27 - Early Season Support (Reese Harvest and Kisses Harvest 2/$5) TV - 10/5-10/31 - Focus on Reese Peanut Butter Cups Snack Size Digital/Online - 9/2 - 10/31 FPO

Halloween Display Strategy Display Transition Strategies September Priorities During September, all 8pks should be sold only from the modular to avoid the cannibalization of the Halloween snack size strategy Transition all 8pk secondary locations to either Halloween Snack Size, Jumbo Snack or Assortment Bags CPC, 12oz – last SSO ships week 31 (Aug. 29-Sept.4) If your CPC, 12oz has sold down, transition to Bliss and/or Halloween displays Bliss – SSO ships week 32, FSI drops week 34 Ensure “A” displays and after Bliss sell down, transition to Halloween displays We cannot let the stores kill the display space to merchandise other non Hershey Halloween items Gain additional displays by leveraging the September 27th FSI on snack size October Priorities All secondary displays should be Halloween Gain additional displays by leveraging the October 10th FSI on snack size No secondary 8pk displays Last 2 weeks of the Halloween season, all secondary displays should be on or around the seasonal modular in the strike zone

15 Cycle Merchandising Strategy

16 Standard Bar 2/$1 Rollback Highlights Weeks: Retail Strategy Ensure all pallets/pdq’s are out on “A” displays & maintain displays throughout Halloween! King Size $1.00 Rollback Highlights Year long rollback IB Gum & Mint Rollback Highlights Weeks: Retail Strategy for King Size & IB Gum & Mint SSO’s shipping to traited stores week 32 (September 5-11) Ensure all pallets & pdq’s are out on “A” displays As programs sell down during Halloween, transition to "B" locations It is critical we maintain all department 82 execution’s throughout Halloween

Hershey Standard Bars deliver high lifts when promoted during Halloween Promoting Standard Bars during Halloween 2008 Halloween – 3/$0.99 Promotion Items: Reese Std Hershey Milk Choc Hershey with Almd Kit Kat Reese Whipps Periods Base: Early: Late:

18 CPC, 12oz Rollback Highlights Weeks Bliss Rollback Highlights Weeks SSO delivers week 32 (September 5-11) FSI week 34 (September 20 th ) Features all Bliss SKU’s, plus Crème de Menthe & Bliss White Reese’s Select & Crème included in rollback, but not in SSO Sampling on Bliss Crème de Menthe & White Chocolate Week 34 (September 24-27) Endcaps in selected stores (Store list will follow at a later date) Strategies Ensure all drc’s are out on “A” displays As department 01 displays sell down, transition all display locations to Halloween items CPC, 12oz, Bliss & Reese’s Select Strategy

Projected POS $38M Incremental $8.6M or +29% Program Highlights October - December 2009 An additional month vs. last year Rollback pricing - $ items on Baking Center Reese’s PB, Heath Bits-o-Brickle, Special Dark Chips HSY Cocoa, 8oz & Kisses, 12oz National FSI November 15 $1 off 3 bags of Hershey’s Baking Chips Strategies Display activity will be sold at store level by the retail team Leverage FSI at store level Due to competitive retails $1.88, $1.98) Hershey will not be the featured Baking Chip this Fall Hershey’s Baking Chips will be the low price leader Target grocery endcaps, cart rail and action alley 2009 Baking Program FSI 11/15

20 3rd Quarter Programming

21 Strategy Breakouts