1. Nathan Pugh Kaleah Thomas

2. Demographics Role Assessment Strategy Recommendations HH Demo 52 wks ending 12/27/03 52 wks endings 12/29/07 SIZE - 3-4 MEM126.7126.8 SIZE - 5+ MEM205.1188.7 AGE FH - UNDER 35138.7140.6 AGE FH - 35-44149.0132.5 KIDS - ANY < 18160.5154.7 KIDS - ANY < 6184.8178.2 KIDS - ANY 6-12167.6172.2 KIDS - ANY 13-17159.7155.8 START UP FAMILIES141.8 YOUNGER BUSTLING FAMILIES 194.6 OLDER BUSTLING FAMILIES 161.6 EMP - FH EMP. PART TIME142.8126.6 ED - FH HIGH SCH GRAD128.3122.7 Nielsen Answers Ad Hoc Demo

3. Demographics Role Assessment Strategy Recommendations HH Demo 52 wks endings 12/29/07 INC - $20,000-29,999125.8 INC - $30,000-39,999133.0 CTL BRAND HH Demo 52 wks endings 12/29/07 INC - $70,000-99,999 122.6 INC - $100,000+ 120.0 AFFLUENT SUBURBAN SPREADS 149.7 EMPTY NEST COUPLES 120.9 ED - FH COLLEGE GRAD 149.3 HSY LITE HH Demo 52 wks endings 12/29/07 INC - $50,000-69,999 128.5 AGE FH - NO FEMALE HEAD 134.8 COMFORTABLE COUNTRY 139.9 EMP - NO FEMALE HEAD 134.8 ED - NO FEMALE HEAD 134.8 RACE - OTHER RACE 137.9 SMUCKERS Nielsen Answers Ad Hoc Demo

4. Demographics Role Assessment Strategy Recommendations HH Demo 52 wks ending 12/27/03 52 wks endings 12/29/07 Change INC - $20,000- 29,999 105.2125.820.63 INC - $50,000- 69,999 87.3110.823.51 SIZE - 5+ MEM242.5207.4-35.07 KIDS - ANY 6-12200.2175.7-24.48 EMP - FH EMP. PART TIME 153.9108.8-45.06 ED - FH NOT HIGH SCH GRAD 77.9121.343.42 RACE - ASIAN52.737.0-15.66 RACE - OTHER RACE115.668.7-46.86 ETH - HISPANIC102.970.6-32.34 JOB - PROF/MANAGERIAL 85.870.3-15.47 Nielsen Answers Ad Hoc Demo

5. Nielsen Answers Product Snapshot

6. Demographics Role Assessment Strategy Recommendations Nielsen Answers Ad Hoc Base Total Chocolate Syrup Market: $181.3 M

7. Demographics Role Assessment Strategy Recommendations Nielsen Answers Ad Hoc Base Brand ITEM BUYERS (000)ITEM PENETRATION SYRUP- CHOCOLATE32,654.228.1% CTL BR - SYRUP- CHOCOLATE 9,845.08.5% HERSHEY'S - SYRUP- CHOCOLATE 21,509.518.5% HERSHEY'S LITE - SYRUP- CHOCOLATE 2,025.41.7% NESTLE NESQUIK - SYRUP- CHOCOLATE 3,202.62.8% SMUCKER'S SUNDAE SYRUP - SYRUP- CHOCOLATE 747.50.6%

8. Demographics Role Assessment Strategy Recommendations Nielsen Answers Ad Hoc Base SYRUP TOPPINGS Avg Margin per SKU of all retailers: 36.2% Total Chocolate Syrup Market: $181.3 M

9. Demographics Role Assessment Strategy Recommendations Nine Stores Audited in Fayetteville: Harps on Wedington - 34 Harps on Garland - 28 Walgreens on Mission - 2 Walgreens on 6 th - 2 Walgreens on Joyce - 2 Walmart on 6 th - 34 Walmart on Joyce - 31 Walmart Neighborhood Market - 21 Target on Joyce - 29 55 total SKUs found: -Syrups -Shells -Specialty

10. Demographics Role Assessment Strategy Recommendations

11. Demographics Role Assessment Strategy Recommendations Brand# SKUs% of Category Nestle23.6% Private Label916.4% Smuckers2341.8% The Hershey Company 1832.7% Vita Specialty Foods 35.5%

12. Demographics Role Assessment Strategy Recommendations Supplier Average Cost Per Ounce Average Unit Cost Nestle$0.05$1.14 Private Label$0.04$0.94 Smuckers$0.12$1.40 The Hershey Company$0.10$1.60 Vita Specialty Foods$0.12$1.61

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17. Demographics Role Assessment Strategy Recommendations  Each retailer approaches category differently  Reoccurring theme: Small Private Label presence  Walgreens does not compete heavily in this category (2 SKUs) ◦ Average margins high at 42.5%  Other Retailers use category as “Cash Machine” with moderate to heavy depth and generous margins

18. Demographics Role Assessment Strategy Recommendations  No flavor innovation will overcome major category players  Retailers need to focus on depth optimization. ◦ Secondary players in category can increase GM%  Walgreens has opportunity to expand depth and be more competitive in the market  Size/Price innovation: introduction of smaller offerings ◦ Lower price points instead of lower price/oz.  Category locations ◦ WM needs to locate near ice cream

19. Demographics Role Assessment Strategy Recommendations

20. Demographics Role Assessment Strategy Recommendations Low Income HHs Age 18 – 34 HHs 1 person HHs Renting HHs “Struggling HHs”

21. Demographics Role Assessment Strategy Recommendations