1. State of the Confectionery Industry

2. Second half growth carries category Retail Sales – IRI 52 Weeks June 16+1.1% December 28+2.2% Manufacturers YTD Shipments June 30-3.1% Lbs.+1.4% $ December 31-0.5% Lbs+3.2% $

3. Total$24.8 Billion Chocolate$13.5 Billion Non-Chocolate$7.6 Billion Gum$3.0 Billion NCA Estimates base on U.S. Dpt. Of Commerce 311D Report 2003 Retail Confectionery Sales

4. Candy & Gum Retail Performance 20032002 20012000 Total Candy & Gum+2.2%+1.5% +2.9%+3.3% Supermarkets+3.0+1.7% +1.5%+2.4% Mass & Wal-Mart+0.9%-0.8% +6.7%+6.3% Drug Stores+4.4%+5.3% +0.8%+0.3% Convenience+5.5%+3.5% +6.1%+7.3% IRI $ Sales as of 12/28/03

5. Candy & Gum Retail Performance 2003 Sales Results Category52 Week52 Week $ Sales% Change Chocolate$5.5 billion+ 1.7% Non –Chocolate$3.3 billion+1.8% Gum$1.2 billion+5.5% Total Candy and Gum$10.0 billion+2.2% IRI $ Sales as of 12/28/03 FDM&W

6. Trade Class 2003 Growth Channel$ Sales% Growth Supermarkets$4.3+3.0% Convenience Stores$3.9+5.5% Drug Stores$2.1+4.4% Wal-Mart$2.4+3.5% Mass X Wal-Mart$1.2-4.4% Warehouse Clubs$4.0*+4.0% Dollar Stores$.7*+7.0%

7. Seasonal Confectionery Trends 2003 2002 20012000 1999 1998 VALENTINE’S -7.6%+6.5%-0.5% +4.7% -2.1% +7.9% EASTER +2.2%-2.2%-2.4% +11.0% -0.1% +10.5% HALLOWEEN +0.7% -0.4%+0.2% +4.7% +6.1% +4.6% CHRISTMAS -1.4%-3.0%+0.7% +1.7% -0.8% -2.9% * IRI FD&M

8. Candy & Gum Retail Performance 2003 Sales Results 12/28/03 Confectionery+2.2% Chocolate +1.7% Everyday Sales+4.3% Seasonal Sales-2.7% Non-Chocolate+5.1% Everyday Sales+5.1% Seasonal Sales-3.2% Breath Fresheners-10.6% Gum+5.5% IRI $ Sales as of 12/28/03 FDM&W

9. Non-Chocolate 9.4 10.2 10.8 11.3 12.0 12.3 12.2 11.4 11.2 10.0 9.9 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Year Non-Choc Per Capita Breath Fresheners 2003-10.6% 2002-6.8% 2001-8.6% * $91 million * 3% of Non-Choc Hard Candy $50 million Soft/Chewy Candy $180 million Chocolate -even

10. Candy and Gum Ranked 3rd Among 2003 Food Categories IRI Food, Drug & Mass Excluding Wal-Mart 12/28/03 +8.5%

11. Candy and Gum Ranked 1st Among 2003 Snack Categories IRI Food, Drug & Mass Excluding Wal-Mart 12/28/03

12. Candy & Gum 2003 Manufacturer Performance Domestic Production and Imports December 31, 2003 $ Lbs. % Change Billions Billions $ Lbs. Total Confectionery $16.2 7.1 +5.2%+3.0% Chocolate Candy $9.3 3.4 +6.4% +1.2% Non-Chocolate Candy $5.0 3.0 +4.0% +5.3% Gum $1.9 0.5 +3.6% +3.2% U.S. Department of Commerce Data

13. Candy & Gum 2003 Manufacturer Performance Domestic Production Only December 31, 2003 $ Lbs. % Change Billions Billions $ Lbs. Total Confectionery $15.5 6.2 +3.2%-0.5% Chocolate Candy $8.9 3.3 +4.8% -0.2% Non-Chocolate Candy $4.3 2.3 +1.4%-0.3% Gum $1.7 0.4 +1.3%+0.8% U.S. Department of Commerce Data

14. Non-Chocolate Import Growth Non-Choc.Non-Choc.Non-Choc.Non-ChocNon-Choc Retail NCA/CMAImport ImportsImports % YearGrowth %ShipmentsGrowth % of Totalof US Production *2003+1.8%-0.3%+21.3%30.1%40.1% 2002+0.3%-5.5%+15.2%26.7%33.4% 2001+0.9%-1.2%+10.4%21.0%24.4% 2000+3.2%-4.3%+9.9%19.2%21.8% 1999+5.8%-3.3%+19.3%17.1%19.6% 1998+6.3%-1.1%+17.7%13.9%14.9% 1997+6.7%+8.8%+7.6%11.7%12.4% 1996+7.6%+5.8%+8.5%10.7%11.4% 2003 Estimates 2002 U.S. Department of Commerce

15. Confectionery Imports & Exports CategoryImportsExports 2003 $ Growth 2003 $ Growth Confectionery$1,970 +23.8% $725 +10.3% Chocolate $633 +28.7% $357 +2.5% Non-Chocolate $844 +21.35 $215 +14.6% Gum $159 +24.9%$63 +26.3% Global Trade Atlas November 2003

16. Confectionery Imports Trading Partner2003 ShipmentsGrowth World$1,970+23.8% Canada$1,002+38.7% Mexico $250+27.2% UK $111 - 13.7% Germany $67 - 3.4% Brazil $62+68.5% Belgium $61+19.2% China $47+15.3% Netherlands $42+18.0% Argentina $40 - 9.8% Switzerland $36 +9.8% Sales in $millions January – November 2003

17. Confectionery Exports Trading Partner2003 ShipmentsGrowth World$725+10.3% Canada$348+13.9% Mexico $102+20.6% Japan $29 +2.6% South Korea $27 - 4.8% UK $20+58.2% Germany $14+29.3% Philippines $12- 37.0% Taiwan $11+28.7% France $11 +410.6% China $11 +9.9% Sales in $millions January – November 2003