Mike DenyardDirector Sales, CTB

Customer Universe

Confectionery Opportunity

100K+ traditional outlets

260K+ out of home outlets

100K+ traditional outlets

260K+ out of home outlets

Confectionery Opportunity

The Grocery Channel

• No. of multiple GroceryOutlets1 : 6,000

• Category value ofConfectionery2 :£2bn +4.8%

• CTB Share2 : 27.3%

Source :

1 IGD 2004

2 Nielsen MAT to Sept 04

The Multiple Impulse/Convenience Channel

• No. of Impulse Outlets1:15,000

• Category Value ofConfectionery2: £1bn +0.8%

• CTB Share2: 31.9%

Source :

1 IGD 2004

2 Nielsen MAT to Sept 04

The Redistributive/Independents Channel

• No. of Independent Outlets1: 72,000

• Category Value ofConfectionery2 : £1bn +2%

• CTB Share2: 34.3%

Source :

1 IGD 2004

2 Nielsen MAT to Sept 04

The Out Of Home Channel

• No. of Outlets : 263,000

• Out of home confectionery category est. £650m (retail sales)

• CTB current share est. at £80m (retail sales)

3.6

4.4

4.8

2.82.5

2.2

5

3.6

1.4

0

1

2

3

4

5

6

FULL YEAR 2002 FULL YEAR 2003 MAT SEPT 2004

Annual

Value Growth %

Grocery Multiples

Convenience

Independents

Source: Nielsen to Sept 04

Channel Dynamics-Growth Trends

Retail Concentration

• Tesco acquisitions: T&S: 862

Europa: 45

• Sainsbury acquisitions: Jacksons: 114

Bells: 54

• Co-op acquisitions: Alldays: 555Balfour: 111

• 11 major grocers in the late 80s

• In 2004 4 grocers have c. 75% share of the confectionery category in grocery

Winning at the

Point of Purchase

Demand Model

Source: Glendinning Management Consultants

Understanding the Shopper

5000 interviewsIn-store filming, Eye Mark

Recorder, Focus Groups, Diaries,

Accompanied Shops, Exit Interviews

Multi-Channel

Areas of Focus• Category segmentation

• Shopper needs

• Location

• Secondary sites (Front of Store)

Shopper Insight In Action“I am busier, more stressed out than ever”

“It’s just all too much!”

“The more simple the message and the easier I can find what I want the better”

Shopper Insight In Action

Store trial - What did shoppers say:

“Confectionery is more visible & easier to find in store”

“The fixture is more tempting & more enjoyable to shop”

“The shoppers have a greater feeling of abundance”

+12%

Category

Growth

Making It Easier to Shop

Impulse Vision2 5

3

1

4

4

Masterbrand In Action

Shopping by Brand – Shoppers

Recognise Brands & Colours

Shopping by Brand – Cadbury

20

40

60

80

100

Cadbury Nestle Mars

Index

Purple

Chocolate

Recognition Index

Source: ID Magasin

Purple Patches

Sugar Masterbrand Packaging

Making It Happen

Scale & Reach

Grocery Outlets 80%

Independent Outlets 60%

Salesforce Coverage

Trebor Blitz - Distribution100%

Weeks

0 6 12

96%

94%

95%

77%

Business Unit

Field Contact

Grocery

Impact

Business

Unit

Regional

Management

Salesmen

MAJOR GROCER REDISTRIBUTIVE

“THE TRIANGE OF INFLUENCE”

Head Office

Field Management

Stores

Flexibility of Approach

CDM Wafer – Independent

Distribution100%

Weeks

0 1 52 3 4

70%

Controller

NAM

Standard

NAM

Seasonal

NAM

FormatsAnalyst

Supply

ChainFinance

Category

Development

Customer

Marketing

Business Unit Approach – “Typical” Team

0

5

10

15

20

25

30

35

40

2002 2003 2004

Category Captaincy/Preferred Supplier

Customer Recognition

2001McDonalds New Product

2002Sugro Marketing

2003Asian Trader AwardBooker Best Supplier

P&H Supplier Of The YearFWD Innovation in Food

ServiceBritish POP Award

2004The Grocers Gold Award

Demand Model

Source: Glendinning Management Consultants

Snaps - Grocery Distribution100%

Weeks

0 1 52 3 4

79%