1. January – June 2006 August, 2006 Confectionery Industry Review

2. USA Market 2006 First Six Months Retail Performance

3. 2006 Retail Confectionery Sales 52 week sales estimates July 2005 – June 2006 % $Change Confectionery $28.6+3.2% (Chocolate, Sugar, Gum) Sales in billions Estimates are based upon interpretation of IRI retail sales data, NCA Shipment Data, and Euromonitor

4. 2006 Retail Channel Performance Channel2006 $ Sales 2006 % Growth Supermarkets$4.3-0.6% *Wal-Mart$3.2+3.8% Mass X Wal-Mart$1.3+2.1% Convenience Stores$4.1+7.2% Drug Stores$2.4+4.1% *Warehouse Clubs$3.1Even *Dollar Stores$.8+0.2% Vending$1.1-0.4% *Bulk$1.4Even Based on 52 Week Sales – July 2005 – June 2006 * Source: Sales figures are compiled by National Confectioners Association based on input from Information Resources, Inc. NCA/CMA Monthly Shipment Reports and U.S. Department of Commerce

5. 2006 Retail Category Sales Category $ Sales GrowthCategory Size (000 millions) Misc. Snacks+30.0%$197 Coffee +7.8% $3,001 Snack/Granola Bars+4.7% $1,873 Candy & Gum+1.2%$7,921 Salty Snacks+0.6%$7,320 Bakery Snacks-0.4% $839 Carb. Beverages -0.9% $13,409 Ice Cream -1.2%$4,376 Cereal -1.5%$6,082 Cookies-2.1%$3,901 Milk -3.5%$10,895 Dry Fruit Snacks -6.6%$511 Information Resources 52 week sales through July 16, 2006 Supermarkets, Drug and Mass Only

6. Candy and Gum Rank 3rd Among Food Categories IRI Food, Drug & Mass Excluding Wal-Mart 7/16/06

7. 2006 Seasonal Performance

8. Confectionery Seasonal Sales (** in millions of dollars) $ Sales 2006 Valentine’s Day $971 2006 Easter $1,884 2005 Halloween $2,088 2005 Christmas $1,375 Results and Projection as of June 2006 Source: Sales figures are compiled by National Confectioners Association based on input from Information Resources, Inc. NCA/CMA Monthly Shipment Reports and U.S. Department of Commerce

9. Seasonal Confectionery Trends 2006 2005 2004 2003 2002 VALENTINE’S -4.0% -3.0% -7.6%+6.5% EASTER -7.6% +5.5% +2.2% -2.2% HALLOWEEN +2.4% +0.7% -0.4% CHRISTMAS -3.5% -1.4% -3.0% * IRI FD&M +0.1% +7.0% +2.3% +2.4%

10. USA Market 2006 First Six Months Manufacturer Performance

11. 2006 Confectionery Performance CategoryManf. Sales % Chocolate$2.5 billion -0.2% Non-Choc. $1.4 billion +6.8% NCA Monthly Shipment Reports January – May 2006 Manufacturers’ Shipments January – May 2006

12. USA Market New Trends

13. Trends - What's for 2006/07  Limited Editions  Dark Chocolate  High End and Gourmet Candy  High Cocoa Content Chocolates  Single Origin Chocolates

14. Gourmet Chocolates are hot! It all depends on your definition of gourmet. Combined, Dove, Ferrero, Ghirardelli, Hershey Dark, Lindt, Mon Cheri and Perugina grew 32.2% in 2005

15. Trends - What's for 2006/07  Sugar Free Gums  Licorice  Single Serve Seasonal Offerings  Breath Fresheners

16. USA Market 2005 Annual Confectionery Performance

17. 2005 Confectionery Performance CategoryRetail Sales Manf. Sales % Total$28.1 Billion $18.3 billion +2.6% Chocolate$15.8 Billion $10.3 billion +3.2% Non-Choc. $8.9 Billion $5.8 billion +7.0% Gum $2.6 Billion $1.7 billion -12.4% NCA Estimates base on 2006 U.S. Dpt. Of Commerce 311D Report and NCA Monthly Shipment Reports Differences based on estimation and “Not specified by kind” category.

18. 2005 Confectionery & Snack Sales The 2005 U.S. Retail Market % $Change Confectionery $28.1+2.6% (Chocolate, Sugar, Gum) Savory Snacks$27.5+4.4% Biscuits & Crackers$11.1+1.3% Sales in billions NCA Shipment Data and Euromonitor

19. Retail Landscape Changing Channel2005 $ Sales 2005 % Growth Supermarkets$4.3-1.1% *Wal-Mart$2.8+3.8% Mass X Wal-Mart$1.2+0.7 Convenience Stores$3.8+8.8% Drug Stores$2.3+1.0% *Warehouse Clubs$3.2+3.6% *Dollar Stores$.8Even Vending$1.2-1.9% *Bulk$1.5-0.5 * estimates