Fall 2010 Hershey’s Key Opportunities Market 184.

Fall 2010Hershey’s Key Opportunities

Market 184

22

Wal-Mart Hershey’s

•Gain commitment and support of key seasonal strategies as well as everyday rollback programs

•Increase market 184 revenue through flawless execution of programs

Hershey’s Wal-Mart

OBJECTIVES

33

1

214218%

21308%

17539%

193011%

176212%

353513%

233014%

178515%

-5%

4%

-11%

0%

0%

5%

-5%

-2%

-20% 0% 20%

Market #184 PerformanceMarket #184 PerformanceYear to Date 2010Year to Date 2010

Market #184 Total YTD

$1,529,015 (-2%, -$33,736)

-$197,782 Vs. Objective of +9.5%

POS Data Week Ending July 30 2010

+$6,964

+$ 8,323

Market A

vg.

Hershey O

bj.-$6,503

-$ 24,975

-$12,313

-$5,538

2010 Summer Program ResultsSyrup & S’mores

2010 POS$2010 $ Blue DRC

Net Ships2010 $ Sell

Thru

$88,191 $145,951 60.4%

6pk POS Sales

Store Nbr

Rep Name WM District 2010 POS$2010 $ Blue DRC

Net Ships2010 $ Sell

Thru

1753 Kimberly Lekarcyk 184 $9,152 $11,418 80.2%1762 James Morrison 184 $10,780 $22,374 48.2%1785 Kimberly Lekarcyk 184 $11,014 $20,851 52.8%1930 Kimberly Lekarcyk 184 $7,961 $13,329 59.7%2130 James Morrison 184 $6,397 $10,948 58.4%2142 Kimberly Lekarcyk 184 $12,522 $24,461 51.2%2330 James Morrison 184 $13,758 $20,988 65.6%3535 James Morrison 184 $16,607 $21,582 76.9%

2010 Walmart S'mores Store Sell Thru

August 6, 2010

Inventory = 21,000 Units/$57,760 Off Rollback

Week 33

$6,000 Increase for the Year! Thank You!

13 Wk POS $ 13 Wk % +/ - 2010 YTD POS $ 2010 %+/ - $22,871 23% $35,491 20%Hershey's Syrup

2010 Halloween Orders/2009 Halloween POS

2009 Lost Sales = -$46,132100% Sell Through in 2010 = +$72,451 vs. 2009

2010 Halloween Order

2009 Total Net ship

% +/- vs LY Net Ship

2010 POS $ w/90% Sell

Thru

2009 Total POS sales

2009 $ Sell Thru

$452,991 $426,672 6.2% $407,692 $380,540 89.2%

Store City2010 Halloween

Order2009 Total Net

ship % +/- vs LY

Net Ship

2010 POS $ w/90% Sell

Thru

2009 Total POS sales

2009 $ Sell Thru

DERRY $51,442 $48,846 5.3% $46,298 $43,873 89.8%SEABROOK $41,866 $32,818 27.6% $37,680 $33,718 102.7%HUDSON $77,007 $84,583 -9.0% $69,306 $66,542 78.7%PLAISTOW $47,327 $40,394 17.2% $42,595 $41,195 102.0%PORTSMOUTH $34,836 $35,811 -2.7% $31,353 $29,299 81.8%SALEM $94,487 $82,303 14.8% $85,038 $77,659 94.4%ROCHESTER $47,703 $53,866 -11.4% $42,933 $41,942 77.9%EPPING $58,322 $48,054 21.4% $52,490 $46,312 96.4%

75

80

85

90

95

100

105

-4 -3 -2 -1 0 1 2

GrowthFlatDecline

2

3

1

1. Group 1: Set prior Labor Day, sell thru in high-90s2. Group 2: Set around Labor Day, sell thru in 80s to 90s3. Group 3: Set 1-2 weeks after Labor Day, sell thru in 70s to 80s

Gross sell through increased drastically for stores with earlier sets

Source: Nielsen Store View, Halloween universe, period ending 11/7/09

National FSIs used to support early features of SS

August 15 – Not Halloween BrandedSeptember 26 October 17

Three National FSIs50m circulation

HERSHEY'SChoc Asst

REESE'S PBC Snickers KIT KAT Mars NC AsstDollar % Chg vs. LY +10.6% +6.3% +9.7% +6.6% +18.9%

Dolla

r S

ale

s

$64.4M

$32.3M$38.4M

$47.0M

$57.3M

Source: Nielsen, FDMx, Halloween Universe, 9 weeks ending 11/7/09

Hershey has 3 of the top 5 brands during the Halloween season

Hershey has increased Ad and POS support to assist retailers with Halloween sell through

Hershey Corrugated Displays

Seasonal advertising has increased 4x since ‘08

#1 Packtype during the Halloween season

Early execution of the 2008 Halloween Seasonresulted in the 2nd highest sell thru of the last 8 seasons

6.2% 10.9% 16.4% 23.1% 33.9% 45.7% 61.6% 86.4% 93.7%2008 Sell Thru

2009 Hershey’s Halloween Results

Only 4 Shipping waves in 2010, compared to 6 waves in 2009. Bigger Waves = Easier display building

WM Week 29 30 31 32 33 34 35 36 37 38 39 40Dates 8/14-8/20 8/21-8/27 8/28-9/3 9/4-9/10 9/11-9/17 9/18-9/24 9/25-10/1 10/2-10/8 10/9-10/15 10/16-10/22 10/23-10/29 10/30-10/31

Wave (in-store date)% of order

TAB Activity Harvest TABSnack, ATG, Non-Choc Asst TAB

FSI's

2009 Waves Mod Set 2 3 4 5 6 7

% of order 22.7%

2009 Cumm Sell Thru 6.0% 10.2% 15.6% 24.8% 35.4% 49.3% 78.7% 85.4%2009 %

Contribution 2.1% 4.8% 6.1% 10.5% 12.0% 15.8% 33.5% 6.7%

4.1%

4.7%

1

44% 6.1% 27.1%

37% 24% 22% 17%

Wave 4(10/7-10/11)

Wave 3(9/23-9/27)

Wave 2(9/9-9/13)

Wave 1(8/19-8/23)

-2 wksor earlier

Avg SellThru

98.3

0 wks

87.3

+1wk

79.4

1) 2010 Halloween Growth Strategy:Set seasonal aisles in Grocery Dept. ASAP

Top retailers who set Halloween on or before Labor Day had higher sell-thrus in general than those who set Halloween later

-11pts

-7.9pts

Labor Day

2009 HalloweenSet Implementation

Source: Nielsen Store View, Halloween universe, period ending 11/7/09

*Hershey Research has shown that setting the Halloween Modular in Lawn + Garden (no matter how early) is equivalent to Setting the modular 2 weeks post-labor day in terms of final Sell-Thru dollars

TVTV TVTV

TV

Snack Size is the #1 Packtype for Halloween accounting for 1/3 of

Halloween seasonal POS at $52.6M

2) 2010 Halloween Growth Strategy:Rollback Snack Size on Cartrail All Season

3) 2010 Halloween Growth Strategy:Lead Endcap – Seasonal Aisle

•The Lead Seasonal Endcap signals to consumer that Halloween Is Here. Points out the exact location of the candy modular.

Fun Halloween Fact:Fun Halloween Fact:

50% of Halloween Candy Purchased is not used for Trick or treating…

because

….The average consumer buys Halloween candy 3-4 times before October 31

1111

Next StepsNext Steps

Commitment to the following:

•Halloween Mod Set In Grocery by 8/20 with Lead Endcap

•Snack Size on Cartrail starting week of 8/23

•Packaged Candy Endcap

•King Size Endcap

•Standard Bar Front Endcap

for