1. 1 District 6 April 16, 2009 By: Melissa VanderMel (Customer Sales Executive) Meghan Krivoshein (District Manager) Jim Morrison (Retail Sales Representative)

2. 2 Agenda Why Confection? Business Review Grow profit and sales with Hershey’s exciting Q2 promotions Fun contest with prizes Questions

3. 3 Why Confection?

4. 4 Confection is a large Category at Hannaford Ranking in the top 20 DSS: YTD 11-12-2008

5. 5 Hannaford ScorecardHannaford Scorecard Confection consistently outperforms top edible categories in recession years Source: IRI FDMx 52 weeks ending 12/2000 and 12/2003 Dollar Percent Change Top 10 Edible Foods in 2000 Dollar Percent Change Top 10 Edible Foods in 2003

6. 6 Confectionery Delivers High Profitability Driven By High Gross Margin Confectionery margins are 3-5% points higher Source: DHC Analysis of Retailer Data % Gross Margin

7. 7 Confectionery Is Among Most Frequently Purchased Categories In Stores Source: ACNielsen HomeScan Frequent purchases make it key to retailers Annual Purchases

8. 8 Candy Is The Most Responsive Category For Display Treatment Source: IRI, Food, 2005 % Increase On Display Only

9. 9 Confectionery is Expandable – Not a Zero Sum Game Source: Dechert-Hampe & Co. Fixed ConsumptionExpandable Consumption Consumption weeks Purchasing Consumption weeks Purchasing  Consumption at fixed rate  Soap, Detergent, Toilet Paper  Promotion Loads Pantry  Consumption Driven by Purchase  Candy, Snacks, Beverages  Promotion Builds Consumption

10. 10 See Candy, Buy Candy, Eat Candy…buy more candy See Candy Buy Candy Eat Candy Buy Candy

11. 11 Consumers Often Have A Special Relationship With Confectionery Source: Dechert-Hampe & Co. “It makes me happy, when I’m feeling blue” “It’s a little pick-me-up when I need some energy” “I feel I’m a better person when I have my candy” “I hide candy. I keep my own stash – the good stuff” “The holidays wouldn’t be the same without the candy”

12. 12 Business Review

13. 13 Hershey is larger than the next three manufactures at Hannaford Source: IRI 52 Week Ending 12-28-2008

14. 14 Top 4 Packtypes represent 62% of Hannaford’s C.G.M. Business with Hershey being share leader in all 4. IRI Hannaford RMA 52 wks ending 12/28/08 Hsy share 42% Hsy share 17% Hsy share 44% Hsy share 57%

15. 15 YTD March 22, Easter timing is driving total dollars down. However, Hannaford declines are greater than market. Dollar % Chg vs. LY IRI, YTD 3-22-2009

16. 16 Easter is driving YTD dollars down due to the timing of Easter falling on March 23 rd LY IRI, YTD 3-22-2009 Hannaford Total CMG Dol Share & Dol Chg Hannaford RMA; YTD we 3/22/09

17. 17 There’s an opportunity to increase Candy, Gum and Mint sales with Hershey’s in District 6 DSS Hannaford YTD w/e 3/28/09 Hershey

18. 18 District 6 Hershey’s sales by store DSS Hannaford YTD w/e 3/28/09 Hershey

19. 19 Encourage ‘one more sale in the basket’ with secondary displays of these top selling Hershey items Source: Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY everyday and seasonal combined Rank in the Top 10

20. 20 Hershey’s Chocolate Syrup 24oz ranks #1 in dollar sales at Hannaford Hrd DSS 1-5-2008 thru 11-15-2008 ice tea, cocoa and syrup

21. 21 Grow profit and sales with Hershey’s exciting Q2 promotions

22. 22 Increase sales of top selling Hershey’s Syrup 24oz with continued support of rack displayed near milk case Hannaford Factory Sales YTD to April, 2007 – Sam (+18%) +18% Source: Hrd DSS 1-5-2008 thru 11-15-2008 ice tea, cocoa and syrup (#1)

23. 23 Items on the Hershey’s Low Profile rack, at Hannaford, return between 36% to 44% profit margin Ice Breakers Mints 41% Ice Breakers Bottle Packs 36% Ice Breakers Gum Packs 44% Standard Bars 38% Benefits: Highly profitable Confection is highly impulsive with 42% unplanned Allows for first to street with new items (e.g. IB Bottle Pks) April 2, 2009

24. 24 4 sided rack April – June Planogram displays high profit, top selling candy items

25. 25 April 2009 promotional display plan Packaged 12oz Largest Packtype Night at the Museum Battle of the Smithsonian 5/22 Summer Profitable, Top Selling Items Milk 6pks (S’Mores): ranks 1, $ sales Reese’s & Kit Kat Snack: ranks 2 & 6, $ sales Bonus Twizzlers: ranks 9 th, $ sales Bonus Standard Bars: 38% profit margin King Size Shipper: 38% profit margin Mother’s Day Pot of Gold Demo (4/25) Theater Boxes Profitable, Value Offering at 5/$5 Source: ranking; Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY CGM everyday and seasonal combined Profit margin: std bars based off.79 SRP and King based off $1.39 SRP 32% profit margin

26. 26 May 2009 promotional display plan Packaged 12oz Largest Packtype/Value Offering with Bonus Bonus Packaged Module, 150ct Summer Profitable, Top Selling Items Milk 6pks (S’Mores): ranks 1, $ sales Reese’s & Kit Kat Snack: ranks 2 & 6, $ sales Bonus Twizzlers: ranks 9 th, $ sales Bonus Standard Bars: 38% profit margin King Size Shipper: 38% profit margin Fresh Magazine Profit Starbucks featured in May – June issue Source: ranking; Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY CGM everyday and seasonal combined Profit margin: std bars based off.79 SRP and King based off $1.39 SRP

27. 27 June 2009 promotional display plan Packaged 12oz Largest Packtype/Value Offering with Bonus Bonus Packaged Module, 150ct Summer Profitable, Top Selling Items Milk 6pks (S’Mores): ranks 1, $ sales Reese’s & Kit Kat Snack: ranks 2 & 6, $ sales Bonus Twizzlers: ranks 9 th, $ sales Summer Co- Marketing June 7- July 11: –Asst module (cartons/Twizzlers) & Syrup module Hannaford & Hershey Help Fight Hunger Hershey’s donates $20K Reese’s Loves You Back Standard Bar shipper New Item Demos Reese’s Dark Pkg DRC co-op with water (end of June) Reese’s Cremes DRC and Trial Size (end of June) Source: ranking; Hannaford DSS 1/5-11/15/08 item rank $ sales TOTAL CATEGORY CGM everyday and seasonal combined Profit margin: std bars based off.79 SRP and King based off $1.39 SRP

28. 28 May 3rd $1 off Bliss or Reese’s Clusters May 17th $ 1 off Honey Maid Grahams when you buy 1 Jet Puffed Marshmallow and 1 Hsy Milk 6pk May 17th $1 off two Syrup/Toppings June 28th $1 off two 6 packs (graphics pending) & $1 off 3 Twizzler bags Hershey’s National FSI’s April – June 2009

29. 29 S’Mores Rocks Your Block …

30. 30 Corrugated S’Mores Display

31. 31 Confectionery has the dimensions to increase consumption, sales and profits –Huge categoryOne of the largest –ProfitableStrong margins –Frequently purchasedKey to shopping trips –IncrementalBuilds the shopping basket –PromotableResponds to activity –ExpandableConsumption leads to growth Source: Dechert-Hampe & Co.

32. 32 Hershey’s fun facts……….. When did Hershey began making Kisses? Finish this - SEE CANDY, … Who has the largest share of C.G.M business at Hannaford? What’s Hannaford’s #1 Confection item, $ sales

33. 33 Thank you!

34. 34 See Candy, Buy Candy, Eat Candy…buy more candy See Candy Buy Candy Eat Candy Buy Candy