Sweet Success! How Hershey’s ® Cocoa Leveraged Digital to Drive Strong Business Results April 24, 2012

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7 Business Situation: Cocoa category growth was sluggish Sales of Hershey’s ® Cocoa were below category growth rate Hershey’s ® Cocoa market share was declining Competitive landscape was showing increased growth, especially in private label Business Strategy: Leverage the iconic nature and heritage of the brand and its key role in baking/recipes, while also driving brand relevance Heritage Marketing Lever: Launch limited-edition, vintage-style packaging Relevance Marketing Lever: Activate the brand through a multi-channel digital program The “Hershey’s ® Cocoa Iconic Recipe” Promotion was created & launched in February 2011

8 Hershey’s ® Cocoa Iconic Recipe Sweepstakes Overview Program launched February 2011 and ran thru April Members of the Hershey’s ® Kitchens community were invited to vote for one of 15 selected recipes they felt was the most iconic Hershey’s ® Cocoa recipe Over 1.1m nostalgic can labels were distributed POS recipe cards, coupon, shelf tags and a PR campaign were designed to generate additional interest from consumers, bakers, bloggers and food writers Grand prize winner won a trip to Hershey, PA and the Hershey’s ® Kitchens to prepare the winning recipe

9 Multi-Channel Digital Program to Drive Engagement

10 Redesign of HersheysKitchen.com Redesign Objectives: Be a best-in-class home for chocolate recipes Ensure HK.com is a trusted partner in chocolate recipe occasions OWN Chocolate Dessert recipes on the web Deepen relationships and engagement w/consumers Drive sales Increase new visitors Increase repeat visitors

11 Before:After: Redesign of

12 Promotion Site Design

13 Site Performance Results Site Performance Metrics Site visits +20% Page views +11% Recipe views +25% Mobile views +40% Time on site +5% Promotion Metrics 180,000 visits 350,000 page views 100,000 entries

14 Site Performance Results Total Visits to Hersheyskitchens.com since re-launch = 2,554,008 Nov ,950 Dec ,226 Jan ,171 Feb ,636 average increase in Jan-April of +28.3% vs. November Mar ,185 Apr , % increase in Hershey’s ® Cocoa page views during Feb vs. Dec +159% increase in Hershey’s ® Cocoa page views during March vs. Dec

15 Branded Recipe Integration and Banner Campaign Hershey’s ® baking brands were integrated into recipes on TasteofHome.com Hershey’s ® branded products replaced generic ingredient keywords in recipes on the site Featured Hershey’s ® ingredients included baking cocoa and various flavors of baking chips Recipes were supported by banner ads as well as “Sponsored by Hershey’s ® Kitchens” logos The banner campaign and branded keyword integration generated multi-million impressions +450% above estimated levels

16 Hershey’s Kitchens Facebook page launched Hershey’s ® Kitchens Facebook page was launched in October and experienced steady fan growth. Hershey’s ® Cocoa and associated recipes were regularly posted and generated strong fan engagement

17 Earned/Shared Digital Media Activation

18 Business Results The Baking Cocoa Category and household penetration went up markedly Hershey’s ® Cocoa 2011 Factory Sales exceeded expectations at more than +15% growth Hershey’s ® Cocoa share growth exceeded category growth rates Household penetration of Hershey’s ® Cocoa went up nearly 10% YTD velocity increased more than +15% to help drive sales growth Leading competitor’s sales, distribution and household penetration went down Hershey’s ® Cocoa Iconic Recipe Sweepstakes drove 34M media impressions

19 Kitchens Facebook presence continues to grow

20 Hershey’s ® Kitchens YouTube Channel launched 4Q2011

21 And the winner is… Iconic Cocoa Recipe Winner’s “Day at Hershey ”

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