1 Retail Execution Meeting January 20, 2009 Danvers, MA

2 Agenda How did we perform against our 2008 objectives? Business Review What does success look like in 2009? –Meet with District Managers and Retail Merchandisers once a quarter –Distribution –Secondary displays in prime real estate

3 How did we perform against our 2008 Objectives? Objectives  Increase factory sales by 6% or $15.9M Factory sales were up 111.2% or $1.6M vs. prior year Up 109.2% or $1.3M vs. plan  Grow share by 2 points to 34% Share was up.06% at 32.6%  Reduce reclaim from 4% to 2.5% of gross sales Reclaim was reduced by 1.8% to 2.7% Back to the Basics  Distribution: Tag and in stock as per planogram(s)  Develop relationship with Hannaford Operations  Ensure all displays are out of the backroom  Secondary displays of seasonal chocolate packaged candy

4 Factory sales were up $1.6M mostly due to Packaged Chocolate 2/$6 supported with module displays Source: HRD Factory Sales Sam

5 Hannaford’s Candy, Gum, Mint (CMG) business is growing. Hershey is driving growth at Hannaford and in market. Source: IRI 52 Week Ending

6 The 3 largest packtypes drove Hershey’s Growth at Hannaford in Source: IRI Hershey 52 Week Ending Hershey Dollar Share by PacktypeHershey Dollar Change by Packtype

7 These 25 stores do 30% of Hershey sales at Hannaford totaling $3.8M. Source: Hannaford DSS YTD 12/28/08

8 What Does Success Look Like in 2009? Objective  Increase factory sales by 3% to $17.2M  Grow share 1 point to 33.2%  Continue to manage reclaim (first to street with displays) How  Develop Hannaford Operations  Distribution: Tag and in stock as per planogram(s)  Secondary displays during key promotional events  AND a lot of caffeine!

9 Why is developing Operations important? Meeting with Hannaford Operations (e.g. District Managers & Division Merchandisers) will help to bridge the gap of communication between Corporate office and store personnel Educate on the importance of the Confection Category to their overall store sales Discuss expectations Saves time: sell in programs and racks to an entire district vs. store by store Discuss opportunities Develop a healthy competition between districts leveraging internal data Gives Hershey edge over the competition Leverage your expertise – share how time you spend in their stores

10 Use this slide with Hannaford Operations to show how their district(s) are performing against total sales and vs. other districts. Celebrate successes and discuss opportunities. Source: Hannaford DSS YTD 12/28/08 Use in your Hannaford Operation appointments…

11 …Followed by this slide Drill down by store to share successes and discuss opportunities. Look for a common opportunities amongst all stores and get approval from Hannaford operations on a solution to increase sales.

12 These 20 items are approved for distribution in ALL confection planograms at Hannaford. Make sure they are tagged and in stock during every store call Hannaford Confection planograms October 2008 – October 2009

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

14 Hannaford’s First Half 2009 Plan February Displays of V Pkg Std Bar Displays Demo: Winter S’Mores Demo Coordinator will hand out coupons for $1.50 off two 6pks 2/15 & 2/21 Big Boxes 5/$5 2/1-5/2 144ct shipper March Displays of E Pkg Bliss Module in support of TV Ad and FSI 3/1 Summer: Bonus Twizzlers & Bonus Standard Bars Big Boxes 5/$5 2/1-5/2 spinner rack display Gum/Mint FSI Spinner rack display of IB Bottle Pks April Displays of E Pkg Pkg 12oz $3.49 Apr – Sept Night 300ct mod Summer: Bonus Twizzlers & Bonus Standard Bars, Rse and KitKat Snack, Milk 6pks Big Boxes 5/$5 2/1-5/2 144ct shipper Demo: IB Bottle Pks to include new white 4/4 On line coupons: Pkg, Std and Big Boxes 4/5 - 4/11: Details pending May Pkg 12oz $3.49 Apr – Sept Bonus 300ct mod Summer: Bonus Twizzlers & Bonus Standard Bars, Rse and KitKat Snack, Milk 6pks 5/17 FSI $1 off 6pk, Honey Maid or Jet Puff Mother’s Day Co- Marketing Event supported with Bliss 150ct Mods (FSI 5/3) Hannaford Fresh Magazine will feature Starbucks - find creative locations to display On line coupons: Pkg, Std and Big Boxes 4/5 - 4/11: Details pending June Summer: Bonus Twizzlers & Bonus Standard Bars, Rse and KitKat Snack, Milk 6pks & King Shippers Reese’s Loves You Back Std Bar Shippers Hannaford Fresh Magazine will feature Starbucks - find creative locations to display On line coupons Reese’s Std Bars: June & July: Details pending In order of priority

15 Thanks!