Market 180 Hershey Halloween Guide

Creative and early executions helped drive Market 180’s Hershey Halloween sales +8.4% in 2011, despite weather. 2011 Final Sell Thru= 79.5% Total shipment for Market= $405,774 2011 Final POS= $322,557 Top 3 Stores for Sell Thru: Mexico, Rockland, Skowhegan (see below) Biggest opportunity to grow sales for Market: Augusta, Auburn, Waterville and Oxford 2

Establish proper inventory flow over the course of the season 2012 Halloween strategies have been designed to offset poor sell thru performance in 2011 Correct Factory & POS volume to achieve 90% Sell Thru and deliver $154.4M in retail sales Establish proper inventory flow over the course of the season Create usage occasions to win share early and reduce mid-season slump Drive POS through season long modular distribution, and displays of top items in “A” locations 3

2011 Hershey Halloween Results in Market 180 Hershey is #1 Halloween Candy Manufacturer

Hershey Halloween 2012 in Market 180 Total Market order= $368,791 +14% vs. Final POS$ last year ($322,557)

Both Mexico and Rockland stores are the only stores in Market 180 with an increase in POS$ shipments vs. LY. How can we support these stores and grow upon the success they had last year as the top two stores in the Market for sell thru and %POS growth? Early execution is extremely important Creative displays worked well last year and will have to be done earlier and better than last year in order to meet demands Likewise, stores with large orders have less of an opportunity than they did last year for POS$ growth. If we do not get early sales, we will have less opportunity to anniversary sales/sell thru in the final weeks of the season. Likewise, stores with large orders have less of an opportunity than they did last year for POS$ growth. If we do not get early sales, we will have less opportunity to anniversary sales/sell thru in the final weeks of the season. How can we support these stores and grow upon the success they had last year as the top two stores in the Market for sell thru and %POS growth? Early execution is extremely important Creative displays worked well last year and will have to be done earlier and better than last year in order to meet demands

Retailers who executed early realized higher overall sell through. Hershey Halloween Unit Sell Through and Set Date Key Customers through 10/31/11 Group 3 (late) sell through = 78.9% Group 1 (early) sell through = 84.0% Group 2 (mid) sell through = 82.2% Source: Internal Customer POS 7 7 7 7

Hershey will support early execution with an August FSI on Chocolate Packaged Candy (CPC) and Snack Size August 12, 2012 (2 coupons) Save $1.00 when you buy 3 bags of REESE’S or KIT KAT Snack Size (9-22 oz.) Save $1.00 when you buy 3 bags of CPC (10 oz. or larger) ½ page with 35M circulation NEW CPC Final offers and images are subject to change 8 8 8 8 8 8 8

Action alley display and consumer support for Harvest CPC will drive $4.3M POS early in the season Display ready ½ pallet wk 29 2 $ 88 TAB September 2nd FSI August 12, 2012 $1 off 3 Bags Snack Size 9-22oz $1 off 3 Bags CPC 10oz or larger ½ page with 35M circulation Door to floor execution in week 29 will drive early sell thru of this key packtype Harvest CPC sell thru will be reported starting week 30 POS sales will roll into Halloween sell thru week 33 "Retail pricing is at the sole discretion of the retailer. Retail prices are only included as a reference point and for comparison purposes.” Cost are subject to change.

Candy should be central to all displays Halloween Items % Purchased And all of those activities translate into consumers purchasing multiple categories Source: Hershey Seasonal Tracker - Halloween 2011 10 10 10 10 10 10

In store displays are a key driver of purchases Source: Hershey Seasonal Tracker – Halloween 2011 11

FSI and TV support will continue in 2012 Newspaper TV REESE’S and KIT KAT Halloween-Specific September 23, 2012 Save $1.00 when you buy 3 bags Full page with 40M circulation New! October 14, 2012 Save $1.00 when you buy 3 bags) Final offers and images are subject to change 12 12 12 12 12 12 12

Hershey’s 2012 Halloween delivers new items, new graphics, and larger piece count assortment bags 68 ¢ 3 $ 28 NEW GRAPHICS 100% Shipping Week 31 (8/25-8/31) 13 $ 88 19 $ 88 King Size Reese’s Pumpkins are replaced by standard bar Reese’s Pumpkins and new Cadbury Screme Eggs Ensure secondary display of Std Bars in PDQs on D82 checkout endcaps near Speedy and Tobacco checkouts 2012 Instant Consumables and Multipacks offer impulse snacking solutions, and reward special Trick-or-Treaters Reese’s Pumpkin 6-packs feature new graphics for 2012 POS and item selection of $13.88 & $19.88 Variety Bags will expand for 2012 after sell thru success in 2011 Ensure $13.88 and $19.88 items are displayed in separate 4ft sections of the seasonal modular, segmented by manufacturer, and striped by item to highlight variety to shoppers "Retail pricing is at the sole discretion of the retailer. Retail prices are only included as a reference point and for comparison purposes.” Cost are subject to change. 13

High traffic displays of Core Snack Size at the lobby/cartrail is key to 90% sell thru Display ready pallet wk 32 Maintain distribution of all SKUs in the seasonal aisle wk 31 through 10/31/12 2 $ 68 Start the season on the right track to 90% sell thru via the following execution imperatives: Modular set by 9/4/12 Seasonal aisle anchor endcaps for $2.68 SS, and $8.88 ATG Snack wk 31 $2.68 & $8.88 Snack pallets on Cart Rail or Grocery Action Alley wk 32 Timely execution is a must, as early season sales are generally not recouped in later weeks 32% of Halloween Buy "Retail pricing is at the sole discretion of the retailer. Retail prices are only included as a reference point and for comparison purposes.” Cost are subject to change. 14

Hershey’s ATG Variety Bag is Walmart’s #1 Seasonal SKU and is 12 Hershey’s ATG Variety Bag is Walmart’s #1 Seasonal SKU and is 12.5% of the total Halloween Buy Door to Grocery AA wk 32 Display ready pallet Season long distribution in the seasonal aisle beginning wk 31 is critical to 90% sell thru 8 $ 88 Most of the country will receive the ATG bag with Whoppers 28% of Halloween Buy "Retail pricing is at the sole discretion of the retailer. Retail prices are only included as a reference point and for comparison purposes.” Cost are subject to change. 15

Achieve 90% sell thru via lobby/cartrail displays of Jumbo Snack Size, a top 3 packtype Display ready pallet wk 35 Maintain distribution of all SKUs in the seasonal aisle wk 31 through 10/31/12 4 $ 68 Door to floor execution in week 35 will drive early sell thru of this key packtype 15% of Halloween Buy "Retail pricing is at the sole discretion of the retailer. Retail prices are only included as a reference point and for comparison purposes.” Cost are subject to change. 16

Feature the top brands & packtypes consumers seek to finish on pace to 90% sell thru CARTRAIL SEASONAL AISLE ANCHOR ENDCAPS Finish the season at, or above 90% sell thru via the following execution imperatives: Seasonal Aisle becomes a destination, ensure distribution of all Halloween SKUs in aisle Maintained in applicable packtype, brand, & price point blocks Seasonal aisle anchor endcaps for $2.68 SS, and $8.88 ATG Snack $2.68 SS, $4.68 Jumbo, & $8.88 ATG Snack pallets on Cart Rail or Grocery Action Alley 4ft branded blocks for $2.68, $4.68, $8.88, $13.88, and $19.88 on Catch the Season Wall Front End Action Alley placement for additional $2.68 SS and $2.88 CPC stack bases Std Bars in PDQs on D82 checkout endcaps near Speedy and Tobacco checkouts ACTION ALLEY

2012 Halloween Planner Early execution drives sell thru success 50% of Halloween orders will ship by week 31 vs. only 35% last year 18.3% of sales occur prior to the end of September Timely execution is a must to achieve 90% or higher sell thru, as early season sales are generally not recouped in later weeks