Easter Market Data

1. U. S.
Confectionery
Performance and
Consumption
Review
Easter 2012
June 5, 2012
Begins at 1:00PM Eastern Time
Prepared by
NCA Customer Relations
Webinar Information:
May 2012 Call in # 877‐868‐6863
Code: 879399#

2. Our Thanks to NCA’s Contributing Partners
2

3. Content
• Executive Summary
• Key Economic Indicators
• Seasonal Sales Results
• Seasonal Support
• Key Takeaways
Confidential & proprietary Easter Report 2012
3

4. Executive Summary
• Consumer confidence is on the rebound.
• Candy is a leading category for Easter and vital for drawing shoppers, driving sales, and
boosting total market baskets. Seasonal sales spiked one week prior to Easter Sunday.
• During Easter season* confectionery sales grew +2.4% in Total US FDMx. Supermarket
Channel grew (+2.7%) outpacing Drug (+2.0%) and Mass (2.1%) Channels.
• Chocolate gained +3.7%, Non‐Chocolate Candy also grew +3.0%, while Gum declined ‐
5.3% due to losses in both base and incremental sales.
• Retail price gains and increased assortment, particularly in seasonal items, drove base
dollar sales of chocolate and non chocolate
• Quality Merchandising (Feature and/or Display) was highest in the week prior to Easter
Sunday. Seasonal items and effective merchandising were key to dollar growth.
*Easter 2012 Holiday Period = 6 weeks ending April 8, 2012
4 Easter Report 2012

5. Key Economic Indicators
• Executive Summary
• Key Economic Indicators
• Seasonal Sales Results
• Seasonal Support
• Key Takeaways
Confidential & proprietary Easter Report 2012
5

6. Improvement in Key Economic Indicators Help Make
Consumers More Upbeat About the State of the Economy
 Unemployment continues to trend down – nearly a full point vs. year ago
 CPI nearly flat in Q1 and unchanged in April
 Consumer Confidence unchanged in April, following modest decline in March
 Present Situation Index improved
Jan Feb Mar April
Unemployment 8.3 8.3 8.2 8.1
Consumer Price Inflation (% chg) 0.2 0.4 0.3 0.0
Consumer Confidence Index 61.5 70.8 69.5 69.2
Present Situation Index 38.8 46.4 49.9 51.4
Source: Bureau of Labor Statistics, The Conference Board
Easter Report 2012
Confidential & proprietary
6

7. While Only 14% Claimed They’d Spend More for Easter
Season, it was up Slightly vs. Year Ago
Consumer Survey: Will you spend more, the same, or less this Easter?
70%
63.8% 64.3%
60%
50%
40%
30%
24.7%
22.4%
20%
13.8%
11.0%
10%
0%
More Same Less
March 2012 March 2011
Source: Big Research Easter Survey March 2012
7

8. Women, Low Income, Boomers, and Seniors Planned
Cautious Spending, While 18‐44 Year Olds Claimed Optimism
Consumer Survey: Groups who plan to spend more, or spend less this Easter…
200
Optimistic
180
160
Cautious
140
Cautious
120
100
80
60
40
20
0
Men Women < $ 50K > $ 50K 18‐24 25‐34 35‐44 45‐54 55‐64 65+
Plan to Spend More Index Plan to Spend Less Index
NOTE: 100 = average among all surveyed; (Indexed to spend more= 13.8% of those surveyed, Indexed to spend less = 22.4% of those surveyed)
Source: Big Research Easter Survey March 2012
8

9. Among Shoppers, Candy Plays a Vital Role
During Easter Season
• 82% of all consumers celebrate Easter
% Buying
100%
89.3% 87.8%
90%
80%
70% 62.5%
60% 53.6%
48.5%
50% 40.7% 39.3%
40%
30% 24.2%
20%
10%
0%
Candy Food Gifts Greeting Clothing Decorations Flowers Other
Cards
89% of shoppers buy candy thus candy is a key to drawing shoppers to buy
other key seasonal items – Candy shoppers, shop to buy during Easter season
Source: Big Research Easter Survey March 2012
9

10. Among shoppers, candy drives spending among
primary shoppers during Easter Season
• 84% of Women celebrate Easter
$60.00
74.9% of women identified
$49.96 Candy themselves as the primary
$50.00 $47.89 spending
among shoppers for their
$42.50 women households2
$40.00
$28.66
$30.00
$25.43
$23.09
$20.47 $21.26
$18.71 $17.93 $18.11
$20.00
$11.15
$8.74
$10.00 $7.16 $7.15
$4.65
$0.00
Food Clothing Candy Gifts Greeting Cards Flowers Decorations Other
Avg $ per Buyer Avg $ per Shopper
Among all women, the primary family shoppers, candy ranks 3rd with average
spend of $18.71 among all women shoppers and $20.47 among those who buy1
Sources: 1. Big Research Easter Survey March 2012; 2. MRI Survey of the American Consumer Fall 2011
10

11. Easter gift shoppers also claimed more trips to
department & specialty stores plus buying more on line
March 2012 March 2011
70% +1.4% +16.1% +19.8% +13.4% +26.4% +8.6%
64%
60%
50%
43%
40%
30% 25%
19%
20%
10%
10%
4%
0%
Discount Store Department Store Specialty Clothing Specialty Store ‐ Online Catalog
Store Gifts, etc.
Source: Big Research Easter Survey March 2012
11

12. Actual channel monthly results experienced impact of
early Easter in same store sales – Strong March 2012
April 2012 March 2012
9.0% 8.4%
8.1% 8.0%
6.8% 6.8%
7.0%
5.9% 5.8% 6.0%
5.0%
4.0%
3.0% 2.4% 2.4%
2.2%
1.0% 0.6% 0.6%
Total Less WM Total Less Drug Apparel Department Luxury Discount Drug Wholesale Club
‐1.0%
‐3.0%
‐4.1%
‐5.0% ‐4.4%
Source: International Council of Shopping Center ‐ U.S. Retail Chain Store Sales Index
12

13. Impact of weather: Warmer weather pulled
spring shopping into Easter period
• Record & near‐record breaking
temperatures dominated eastern
2/3rds of nation contributing to
warmest March on record for the
contiguous United States
• With exception of southern
regions, and some areas of
Midwest & Northeast rainfall was
limited during Easter shopping
season.
13 Source: National Climatic Data Center U.S. Department of Commerce

14. Content
• Executive Summary
• Key Economic Indicators
• Seasonal Sales Results
• Seasonal Support
• Opportunities
• Key Takeaways
Easter Report 2012
Confidential & proprietary
14

15. U.S. Easter Candy is Big Business
Celebrating with family…
Projected
All U.S. Channels*
+2.4%
Source: NCA estimates 2012 – seasonal related products

16. As seen with Christmas and Valentine’s Day, Fewer Channels End
Up Shopped Than Initially Intended; a Consolidation of Trips
Especially Affects Club/Warehouse Stores
Where Shopped for Easter Candy
% of Adult Candy Buyers
n=2,828
Supermarket or Grocery Store 60%
51%
Key Takeaway:
41%
Discount Store / Supercenter
32% With fewer trips, it’s
24% important to
Drug Store
17% drive shopper
'Dollar' / 99 Cent Store 24% destination with Candy
14%
Club/Warehouse Store 15%
4%
Department Store 6%
3%
Specialty Candy Shop 6%
3%
Planned to Shop
C-Store / Gas Station 2%
2% Shopped Channel
Card or Gift Shop 5%
2%
Source: * Calculated by dividing the portion who shopped there by the portion that planned to (x100)
16

17. Food Channel Slightly Outpaced Other Channels
During Easter Period
Outlet Dollar Share of Total US FDMx
6 weeks end Apr 8, 2012
Total Candy & Gum $1,450,085,632 (+2.4%)
Mass
19%
+2.1%
Food
51%
Drug +2.7%
30%
+2.0%
Easter Report 2012
17
Source: SymphonyIRI – FDMx Six Weeks ending April 8, 2012

18. Candy Category Grew during Easter Period in
Dollars, but Declined in Unit Sales
Total US FDMx Dollar Sales Unit Sales
Total Candy & Gum +2.4% ‐4.4%
Total Chocolate +3.7% ‐4.1%
Total Non‐Chocolate +3.0% ‐3.2%
Unit Sales Decline driven by Price per Unit change +7.1% versus year ago
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
18

19. Chocolate Contributed 68% of Candy Sales
during Easter Holiday period
Total US FDMx
6 weeks end Apr 8, 2012
Dollar Sales, Share and % chg vs year ago
+3.0% vs yr ago
Total Non‐
Chocolate,
$409,299,168 Total
32% Chocolate,
$870,258,176
68%
+3.7% vs yr ago
Source: SymphonyIRI
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
19

20. Easter Chocolate was Share Leader As Expected
Total US FDMx
AO CHOC
6 weeks end Apr 8, 2012
1% Dollar Share
CHOC
BOX/BAG/BAR
< 3.5OZ
SEASONAL 15%
CHOCOLATE
EASTER CANDY
49%
CHOC CANDY
BOX/BAG/BAR >
3.5OZ
28%
GIFT BOX CHOC SNACK SIZE
Source: SymphonyIRI 2% 4%
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
20

21. Growth in Chocolate Driven by
Seasonal Easter Candy
Total US FDMx
6 weeks end Apr 8, 2012
Dollar sales % change vs year ago
SEASONAL CHOCOLATE EASTER CANDY 7.5%
GIFT BOX 0.3%
‐3.8% SNACK SIZE
BOX/BAG/BAR > 3.5OZ 0.8%
BOX/BAG/BAR < 3.5OZ
‐0.5%
Source: SymphonyIRI
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
21

22. More than Half of Non‐Chocolate Segment Sales Came
from Chewy and Seasonal Easter
Total US FDMx
6 weeks end Apr 8, 2012
Dollar Share of Non‐Chocolate, % Chg vs yr ago
+0.3% vs yr ago
+3.0% vs yr ago
Non‐Chocolate
All Other Non‐ 60% share
Chewy
Chocolate of
33%
39%
Non‐Chocolate
Seasonal Non‐
Chocolate Easter
27%
+6.3% vs yr ago
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
22

23. Total Sales for Easter Week Exceeded Year Ago Despite
Earlier Easter Driven by Stronger Base Sales
Definitions:
Base Dollar Sales = Average Weekly
sales with no additional merchandising
Total Candy & Gum: (everyday sales without promotional ads,
displays, price reductions)
Weekly Base and Incremental Dollar Sales Incremental Dollars = Sales dollars above
Average weekly sales ‐driven by
Base Dollars Incremental Dollars
promotion
$450,000,000
$400,000,000
$350,000,000
$300,000,000
$250,000,000
$200,000,000
$150,000,000
$100,000,000
2‐Jan‐11 2‐Feb‐11 2‐Mar‐11 2‐Apr‐11 2‐May‐11 2‐Jun‐11 2‐Jul‐11 2‐Aug‐11 2‐Sep‐11 2‐Oct‐11 2‐Nov‐11 2‐Dec‐11 2‐Jan‐12 2‐Feb‐12 2‐Mar‐12 2‐Apr‐12
23 Source: SymphonyIRI FDMx ‐ 2011, 2012

24. Top Selling Week for Both Total and Incremental Sales
Seen in Last Week of Season
Total US FDMx
Total Candy & Gum
Vol and Avg Unit Price
200,000,000 6 Single Weeks Ending Apr 8, 2012 $1.90
180,000,000 $1.85
160,000,000 $1.80
140,000,000
$1.75
120,000,000
$1.70
100,000,000
$1.65
80,000,000
$1.60
60,000,000
40,000,000 $1.55
20,000,000 $1.50
0 $1.45
WE Mar 4, WE Mar 11, WE Mar 18, WE Mar 25, WE Apr 1, WE Apr 8,
2012 2012 2012 2012 2012 2012
Base Vol Incr Vol Avg Price
Source: SymphonyIRI 6 weeks ending Apr 8, 2012

25. Both Chocolate & Non Chocolate Candy Experienced
Surge in Sales the Week Prior to the Holiday
Total US FDMx
Total US FDMx
6 individual weeks end Apr 8, 2012
6 individual weeks end Apr 8, 2012
Total Non‐Chocolate Candy
Total Chocolate Candy
$140,000,000
$140,000,000
$120,000,000
$120,000,000
$100,000,000 $100,000,000
$80,000,000 $80,000,000
$60,000,000 $60,000,000
$40,000,000 $40,000,000
$20,000,000 $20,000,000
$0 $0
6 Wks 5 Wks 4 Wks 3 Wks 2 Wks 1 Wk 6 Wks 5 Wks 4 Wks 3 Wks 2 Wks 1 Wk
Prior Prior Prior Prior Prior Prior Prior Prior Prior Prior Prior Prior
Dollar Sales Dollar Sales
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
25

26. Content
• Executive Summary
• Key Economic Indicators
• Seasonal Sales Results
• Seasonal Support
• Key Takeaways
Easter Report 2012
26

27. Easter period Base Dollar Sales Gained, Yet Only
Chocolate Saw Gains in Incremental Sales
Total US FDMx
6 week ending April 8, 2012
Total Dollars %
Chg YAgo ‐5.2%
3.0%
3.7%
2.4%
Incr Dol % Chg
‐4.4%
YAgo ‐2.0% Total Chocolate only
(38% of total sales)
1.2% Segment with gains in
‐0.1% Incremental Dollars
‐5.2%
Base Dol % Chg 4.7%
Yago 5.4%
(62% of total sales) 3.5% Base Dollars Up for all
Segments except Gum
‐0.06 ‐0.04 ‐0.02 0 0.02 0.04 0.06
GUM TOTAL NON‐CHOCOLATE TOTAL CHOCOLATE Total Candy & Gum
Source: SymphonyIRI 6 weeks ending Apr 8, 2012

28. Average Items per Store Were Up, Driven by
Higher Number of Seasonal Items
FDMx Average Items per Store: Total U.S.
2011 2012 2011 2012
+5%
336 +11%
350 321
140 122
110
300 +2% 120
250 221 225
100
200 80
+9%
47 51
150
+1% 60
102 103
40
100
20
50
0
0 Easter Seasonal Chocolate Easter Seasonal Non
Chocolate Non Chocolate Gum Chocolate
28 Source: SymphonyIRI FDMx Easter week – 4/24/11 vs.4/8/12

29. Steady Gains in Average Everyday Retail Unit
Prices are Reflecting Cost Inflation
Avg Non‐Promoted Price Per Unit +7.1%
$2.30
$2.20
$2.10
+13₵
$1.98
$2.00
$1.90
$1.85
$1.80
$1.79
$1.70
+12₵
$1.67
$1.60
For each 1% retail price gain; Projected
Volume Impact = ‐1.3% ‐1.6%*
$1.50
2‐Jan‐11 2‐Feb‐11 2‐Mar‐11 2‐Apr‐11 2‐May‐11 2‐Jun‐11 2‐Jul‐11 2‐Aug‐11 2‐Sep‐11 2‐Oct‐11 2‐Nov‐11 2‐Dec‐11 2‐Jan‐12 2‐Feb‐12 2‐Mar‐12 2‐Apr‐12
*Based on SymphonyIRI price elasticity 2012 modeling
Avg Non‐Promoted Price Per Unit
Source: SymphonyIRI FDMx 2011‐2012
Easter Report 2012
29

30. Overall Ad Blocks Across All Channels Were Up +3.9%
vs. Year Ago for the Pre‐Easter Merchandising Period
Two out of the 7 weeks leading up to Easter saw major increases compared to
year ago week while 4 of the weeks experienced decrease in promotions
13.6%
9.4% 4.5% 27.0% 5.0% 1.6% 5.5%
Source: Easter Report 2012

31. Food Channel Ad Blocks Similar to Last Year
Drug and Mass Increased and Had Individual Spikes in two different weeks
Source: Easter Report 2012

32. Total Chocolate Merchandising levels – FDMx
Displays Increased in Final Weeks
80%
70%
60%
50%
40%
30%
20%
10%
0%
WE Mar 4, WE Mar 11, WE Mar 18, WE Mar 25, WE Apr 1, WE Apr 8,
2012 2012 2012 2012 2012 2012
TPR FO DO F&D
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
32

33. Total Confectionery Category Promotional Prices Are
Trending Up Driven by Chocolate
$2.70
Avg Promoted Price Per Unit ‐ Total Candy & Gum
$2.50 Avg Promoted Price Per Unit ‐ Chocolate
Avg Promoted Price Per Unit ‐ Non Chocolate
$2.30
Total
$2.10 Total Chocolate: + 9₵
Chocolate: $1.90
$1.90
$1.81
$1.70
$1.50
$1.30
$1.10
6‐Mar‐11 6‐Apr‐11 6‐May‐11 6‐Jun‐11 6‐Jul‐11 6‐Aug‐11 6‐Sep‐11 6‐Oct‐11 6‐Nov‐11 6‐Dec‐11 6‐Jan‐12 6‐Feb‐12 6‐Mar‐12 6‐Apr‐12
Halloween Holidays Valentines Day Easter
Source: SymphonyIRI FDMx 2011‐2012
Easter Report 2012
33

34. FDMx ‐ Overall Promotional Efficiency Was Strong Yet
Off Slightly Vs. Year Ago – Driven by Higher Retails
Promotional Efficiency 2012 Promotional Efficiency 2011
100 Easter Seasonal items deliver the highest promotional efficiency
92 91
88
90 86
84
82
79
77
80
73
70
70
58
60 55
50
40
Total Candy & Gum Chocolate Easter Seasonal Non‐Chocolate Easter Seasonal Gum
Chocolate Non‐Chocolate
Promotional Efficiency = How much promoted volume is truly incremental
(over & above everyday sales)
(If not incremental, it is subsidized volume – i.e. you’re investing in volume you’d have achieved anyway)
Easter Report 2012
34 Source: SymphonyIRI ‐ 1 week prior to Easter Sunday 2012 vs. 2011

35. FDMx: Easter Displays Drive Significant Incremental Gains
vs. Everyday Weekly Volume Across Leading Segments
900
7.75 ‐ 8.5 times
every day volume
800
700
3.75 – 6 times
3 to 6 times every day every day volume
volume
600
Nearly 1.5 ‐ 4.25
500 times every day
2 –3.75 times volume
400 every day volume
300
200
100
% Incr. Any Merchandising % Incr. Feature & Display % Incr. Display Only % Incr. Feature Only % Incr. Price Reduction Only
Total Chocolate Easter Chocolate ‐ Seasonal Non Chocolate Easter Non Chocolate Seasonal
Source: SymphonyIRI – FDMx ‐ One week ending Apr 8, 2012 Easter Report 2012
35

36. Supermarket Channel Experienced Gains in both Base
and Incremental Sales in all Segments (ex Gum)
Total US FOOD
6 week end Apr 8, 2012
‐6.5%
Total Dollars % 3.5%
Chg YAgo 4.5%
2.7%
‐6.5%
Incr Dol % Chg 4.4%
YAgo 1.1%
1.5%
‐6.5%
Base Dol % Chg 3.2%
YAgo 6.1%
3.1%
‐0.1 ‐0.05 0 0.05 0.1
GUM TOTAL NON‐CHOCOLATE TOTAL CHOCOLATE Total Candy & Gum
Source: SymphonyIRI 6 weeks ending Apr 8, 2012

37. More Merchandising in 2012 in Total US FOOD
in 4 Weeks Prior to Easter
Total US FOOD
Total Candy & Gum
6 individual weeks ending Apr 8, 2012
% Vol Any Merch
50%
45%
45%
40%
38% 37%
35% 35%
35% 34%
30%
6 Wks prior 5 Wks prior 4 Wks prior 3 Wks prior 2 Wks prior 1 Wk prior
2011 2012
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
37

38. Chocolate Display Activity Was Significant in
Final weeks for FOOD
80%
70%
60%
50%
40%
30%
20%
10%
0%
WE Mar 4, WE Mar 11, WE Mar 18, WE Mar 25, WE Apr 1, WE Apr 8,
2012 2012 2012 2012 2012 2012
Source: SymphonyIRI TPR FO DO F&D
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
38

39. In final week, Food Channel Had Increased Level
of Display Levels From More Displays per Store
% STORES with ANY DISPLAY on Average # of DISPLAYS on
EASTER WEEK per Stores Audited EASTER WEEK per Stores Audited
100%
8.0 +7%
+0.4%
+0.5% +5%
7.5
95%
7.0
90% 6.5
Total Chocolate Total Non‐Chocolate Total Chocolate Total Non‐Chocolate
2011 2012 2011 2012
Source: SymphonyIRI Food Store Audit, 1 week prior to Easter Sunday
(Store audits of 2800 stores week of Easter 2012 vs. same period year ago)
Easter Report 2012
39

40. FOOD Channel Both Chocolate & Non Chocolate
DISPLAY Levels Peaked Week Prior to Holiday
Total US FOOD Total US FOOD
CHOCOLATE NON‐CHOCOLATE
6 individual weeks ending Apr 8, 2012 6 individual weeks ending Apr 8, 2012
40% % Vol Display Only % Vol Display Only
38% 40%
36%
35%
35%
31%
30% 29% 30%
28% 30% 28%
27%
26% 27%
25%
25% 25% 24%
20% 20%
6 Wks 5 Wks 4 Wks 3 Wks 2 Wks 1 Wk 6 Wks 5 Wks 4 Wks 3 Wks 2 Wks 1 Wk prior
prior prior prior prior prior prior prior prior prior prior prior
2011 2012 2011 2012
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
40

41. FOOD Channel SEASONAL CHOCOLATE EASTER
CANDY DISPLAY
Total US
70% Easter Seasonal Chocolate
67% 6 individual weeks ending Apr 8, 2012
% Vol Display Only
65% Could attract more
65% shoppers with features &
62% moderate discounts in final
61%
weeks to minimize post
60% season deep discounting
(Special seasonal items & packages) 55%
55% Display levels reflect
SELLING DOWN OF SEASONAL PRODUCTS – 51%
Getting ‘right’ quantity, and compelling
50% merchandising is key to efficient promotion
45%
6 Wks prior 5 Wks prior 4 Wks prior 3 Wks prior 2 Wks prior 1 Wk prior
2011 2012
Confidential & proprietary Easter Report 2012
41

42. Non‐Chocolate Declined Nearly 10% in Incremental
Sales During Easter in DRUG Channel
Total US DRUG
6 week ending Apr 8, 2012
Total Dollars % ‐6.8%
Chg YAgo 1.6%
4.0%
2.0%
Incr Dol % Chg
‐28.7%
‐9.7% ← Total Non‐Chocolate
YAgo
1.5% saw substantial loss
‐2.6% during Easter
‐3.4%
Base Dol % Chg 5.2%
YAgo 5.7% ← Base Dollars Grew for
4.1% all segments ex Gum
‐0.4 ‐0.3 ‐0.2 ‐0.1 0 0.1
GUM TOTAL NON‐CHOCOLATE TOTAL CHOCOLATE Total Candy & Gum
Source: SymphonyIRI 6 weeks ending Apr 8, 2012

43. DRUG Channel Experienced Less Merchandising
Overall vs year ago in 4 out of 6 Holiday Weeks
Total US DRUG
Total Candy & Gum
66% 6 individual weeks ending Apr 8, 2012
% Vol Any Merch
64%
62%
61%
60%
58%
58%
56%
56% 55% 55%
54%
52%
52%
50%
6 Wks prior 5 Wks prior 4 Wks prior 3 Wks prior 2 Wks prior 1 Wk prior
2011 2012
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
43

44. Total Chocolate Merchandising levels – DRUG:
Weekly display levels were similar for entire season yet
feature & display surged in final week
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
WE Mar 4, 2012 WE Mar 11, 2012 WE Mar 18, 2012 WE Mar 25, 2012 WE Apr 1, 2012 WE Apr 8, 2012
Source: SymphonyIRI TPR FO DO F&D
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
44

45. DRUG Channel ‐ Non Chocolate % Volume from
Merchandising Higher Early & in Final Week vs. YAG;
Overall % Volume From Display Was Below Year Ago
Total US DRUG Total US DRUG
NON‐CHOCOLATE NON‐CHOCOLATE
6 individual weeks ending Apr 8, 2012 6 individual weeks ending Apr 8, 2012
% Vol Any Merch % Vol Display Only
75% 73% 35%
70%
67% 30%
28%
65% 62%
60% 25%
59% 23%
60% 58%
20%
20% 19% 19%
55% 17%
50% 15%
6 Wks 5 Wks 4 Wks 3 Wks 2 Wks 1 Wk 6 Wks 5 Wks 4 Wks 3 Wks 2 Wks 1 Wk
prior prior prior prior prior prior prior prior prior prior prior prior
2011 2012 2011 2012
Source: SymphonyIRI 6 weeks ending Apr 8, 2012 Easter Report 2012
45

46. Promotional Efficiencies Improve For All Segments in
Final Two Weeks Approaching Easter
Efficiency = Percent of promotional volume that is incremental
90.0 88
86
85.0
Finishing final weeks of season 82
80.0 with promotional support drives 77
75
75.0 effective and efficient promotion
71
70
70.0
66
65 65 64
65.0 62
61
60 59 60
60.0 57 57
55 55
54 54 54
55.0
51 51
49
50.0 48 47 48
46 46
45 45
44 43
45.0 43
40.0
Wk Mar 4 Wk Mar 11 Wk Mar 18 Wk Mar 25 Wk April 1 Wk April 8
Total Candy & Gum Chocolate Chocolate Easter Seasonal Non‐Chocolate Non‐Chocolate Easter Seasonal Gum
Easter Report 2012
46 Source: SymphonyIRI 6 weeks ending Apr 8, 2012; FDMx

47. • Executive Summary
• Key Economic Indicators
• Seasonal Sales Results
• Seasonal Support
• Key Takeaways
Confidential & proprietary Easter Report 2012
47

48. Recommendations for
2013 Easter Season
Recommendations Manufacturers/Broker Retailers
Consumer • Monitor economic outlook, plan • Prioritize category as a leader in seasonal
landscape accordingly – bring value & in‐store spending to attract, convert shoppers – make
theater to occasion merchandising retail stores the seasonal destination
Seasonal Planning • Plan Valentines Day & Easter together: • Earlier planning & firm commitments with
Plan early, focus on seasonal timing manufacturers, brokers to accommodate
seasonal item supply chain requirements
Effective & Efficient • Invest in Efficient promotion – right items, • Strong merchandising – finish season with
Promotion weeks, vehicles, quantities, and displays quality advertising, display final 2 weeks prior to
@ modest price reductions Easter; Best weeks, fair price, on display
Execution • On time seasonal shipments • Strong support for seasonal items w/ display
• Support strong Valentines Day sell • Fast start: Immediate post‐Valentines Day
through, quick season display changeover display plan changeover – critical to season
Contingencies • Anticipate, develop joint business plans • Partner with manufacturers, brokers to
for potential shortfalls from shorter build/execute new seasonal occasion for candy
season, continued pricing impact
48

49. Thank You
We Welcome You to Contact NCA For questions…
Larry Wilson – Vice President, Customer Relations
Larry.wilson@CandyUSA.com
Phone: 202‐534‐1440 ext. 111
Jenn Ellek – Director of Trade Communications and Marketing
Jenn.ellek@CandyUSA.com
Phone: 202‐534‐1440 ext. 146
49

50. Appendix
• Merchandising lifts by vehicle
• Grocery & Drug channels
50

51. Grocery: Easter displays drive significant promotional
lifts vs. everyday weekly volume across leading segments
900
Nearly 8 times
every day volume
800
700
600
3.5 – 5 times
Nearly 2 to 5 times every day volume
500
every day volume
2 –3.5 times every Nearly 1 ‐ 3.5
400 day volume times every day
volume
300
200
100
% Incr. Any Merchandising % Incr. Feature & Display % Incr. Display Only % Incr. Feature Only % Incr. Price Reduction Only
Total Chocolate Easter Chocolate ‐ Seasonal Non Chocolate Easter Non Chocolate Seasonal
Source: SymphonyIRI – Grocery ‐ One week ending Apr 8, 2012 Easter Report 2012
51

52. Drug: Easter displays drive significant promotional lifts
vs. everyday weekly volume across leading segments
900
6.5 ‐ 8 times every
day volume
800
700
2 to 5.25 times every
600
day volume 2.5 – 5.25 times
every day volume
500
2 –3.5 times every 1 ‐ 3 times every
400 day volume day volume
300
200
100
0
% Incr. Any Merchandising % Incr. Feature & Display % Incr. Display Only % Incr. Feature Only % Incr. Price Reduction Only
Total Chocolate Easter Chocolate ‐ Seasonal Non Chocolate Easter Non Chocolate Seasonal
Source: SymphonyIRI – Grocery ‐ One week ending Apr 8, 2012 Easter Report 2012
52