1 Hershey’s NEW! 6 and 12 Packs Retail Execution Guide

Key Messages Over the past 5 years, Hershey’s 8pks have become the #1 packtype in Dept 1 with factory sales of $118M, up +$67M or +146% Current $1.00 8pk program has created an unsustainable growth model due a high trade spend which is dilutive to Hershey’s net sales plan With the pricing action implemented, Walmart will be converting the 8pk business to $1.78 and $1.00 beginning in December 2011 Flawless retail execution of the following are key to ensuring a successful launch: Mod placement of all 6-Pack Snack SKU’s weeks and 12-Pack Snack week 7 Utilize 12pks as the sole promotional driver equaling all 8pk display activity from pks are to be sold on shelf only and must not be promoted to allow the consumer trade up to 12pks

New 12-packs will come in 5 different sku’s featuring the top brands at a great value Display Ready Pallets for 2012

New 6-packs will come in 7 different sku’s featuring our top brands at the $1 EDLP 6pks are to be sold on shelf only and must not be promoted to allow the consumer trade up to 12pks

Transition timeline from 8pks to 6-12pks DISTRIBUTION 6-Pack Snack Wk 48 - Mod fill SSO Replenishment 1/1/12 Wk 52 C-stocking 12-Pack Snack Mod placement Week 7 8-PK EXIT STRATEGY Wk 39 - turn off c-stocks Wk 45 - CWO all 8pks PROMOTIONAL 12-Pack ½ pallet SSO’s Weeks 51, 52, 3, 5, & 7 Execution: Front End AA Cartrail Grocery AA All secondary off-shelf activity should be focused on 12-packs ADVERTISING TAB Wks 51 & 12 (TBD)

12-packs will be featured in the strike zone on the mod encouraging consumers to trade up Replenishment will be turned on week 49 for 6pk Snack and week 7 for 12pk Snack New set will have all vendors 12’s & 6’s

12pk Snack8-Packs RETAIL: $1.78 $1.00 UNITS: 1,500 1,500 POS $: $2,670$1, % or +$1,170 Margin: 20% 17% Profit $: $534 $ % or +$279 New 6pk Snack has the same money mechanics as 8-pks and should not be used in any off-shelf activity 12pk Snack delivers significant increases in POS $ (+78%) and profit $’s (+109%) vs. an endcap of 8pks

12-Pack Snack are a key pillar of Walmart’s “value strategy” and should be executed around the store * Goal is to equal pk secondary display activity

Display ready pallets will be incremental to endcaps & allow stores to execute in high traffic locations Cartrail or Lobby Stackbase Front End AA Stackbase Executed in front of the Grocery Speedies Grocery AA Stackbase Execute as a ½ stack or full stackbase (if the store receives 2) down grocery action alley

Key elements needed to ensure a successful transition/launch of the 6 and 12 packs for % distribution of all Snack SKU’s 1 st week available 6-Pack Snack Week Pack Snack Week 7 12-packs should be the only packtype used for secondary off-shelf displays as it self accrues (trade rate = accrual) Absolutely no secondary display activity with 6-packs. Walmart is pushing to increase it’s average retail price and we have to move off the $1 price point for 8pks and move to the $1.78 which is a win for Hershey and Walmart ******************** INTERNAL USE ONLY ********************