Market 180Hershey Halloween Guide

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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

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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

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2011 Hershey Halloween Results in Market 180

Walmart Halloween Sales thru October 31, 20112010

Halloween Net Ships

2010 Halloween

POS

2010 Sell Thru

2011 Halloween Net Ships incl

MTR

2011 Halloween POS thru 10-31-11

Sell Thru %POS $ Inc/Dec

vs. 2010 Season

% +/-

PRELIMINARY FINAL RESULTS $344,812 $297,633 86.3% $405,774 $322,557 79.5% $24,924 8.4%

Store Nbr

HSY Ar

Rep Name WMT Market Store CityStore State

2010 Halloween Net

Ships

2010 Halloween

POS

2010 Sell Thru

2011 Halloween Net Ships incl

MTR

2011 Halloween POS thru 10-31-11

Sell Thru %POS $ Inc/Dec

vs. 2010 Season

% +/-

3269 NortheastFern Strasser 180 MEXICO ME $20,525 $13,828 67.4% $18,549 $18,035 97.2% $4,207 30.4%

1797 NortheastFern Strasser 180 ROCKLAND ME $39,372 $30,081 76.4% $43,169 $39,042 90.4% $8,953 29.8%

2143 NortheastFern Strasser 180 SKOWHEGAN ME $25,317 $23,894 94.4% $35,027 $29,115 83.1% $5,221 21.9%

2013 NortheastFern Strasser 180 WATERVILLE ME $51,215 $44,478 86.8% $61,289 $50,126 81.8% $5,644 12.7%

1866 NortheastFern Strasser 180 FARMINGTON ME $40,607 $34,381 84.7% $45,755 $37,136 81.2% $2,752 8.0%

2046 NortheastFern Strasser 180 AUGUSTA ME $58,083 $46,606 80.2% $64,870 $50,534 77.9% $3,907 8.4%

1868 NortheastPhilip Hannan 180 AUBURN ME $76,964 $74,191 96.4% $90,439 $67,005 74.1% -$7,196 -9.7%

2183 NortheastPhilip Hannan 180 OXFORD ME $32,729 $30,176 92.2% $46,676 $31,564 67.6% $1,389 4.6%

Hershey is #1 Halloween Candy

Manufacturer

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Hershey Halloween 2012 in Market 180

• Total Market order= $368,791+14% vs. Final POS$ last

year ($322,557)

2011 Halloween Net

Ships incl MTR

2011 Halloween POS thru 10-31-11

Sell Thru %2012

Halloween POS $ Order

POS $ Inc/Dec vs 2011 Net

Ships

% Inc/Dec vs 2011 Net Ships

2012 POS $'s w/90% Sell

Thru

2012 POS $ Inc/Dec vs

2011 Sell Thru

$405,774 $322,557 79.5% $368,701 -$37,072 -9.1% $331,831 $9,274

Store Nbr Rep Name

WMT Di

Store City Store State

2011 Halloween Net

Ships incl MTR

2011 Halloween POS thru 10-31-11

Sell Thru %2012

Halloween POS $ Order

POS $ Inc/Dec vs 2011 Net

Ships

% Inc/Dec vs 2011 Net Ships

2012 POS $'s w/90% Sell

Thru

2012 POS $ Inc/Dec vs

2011 Sell Thru

3269 Fern Strasser 1EMEXICO ME $18,549 $18,035 97.2% $21,811 $3,262 17.6% $19,630 $1,5951797 Fern Strasser 1EROCKLAND ME $43,169 $39,042 90.4% $45,725 $2,556 5.9% $41,153 $2,1102143 Fern Strasser 1ESKOWHEGAN ME $35,027 $29,115 83.1% $33,769 -$1,259 -3.6% $30,392 $1,2772013 Fern Strasser 1EWATERVILLE ME $61,289 $50,126 81.8% $58,129 -$3,159 -5.2% $52,316 $2,1901866 Fern Strasser 1EFARMINGTON ME $45,755 $37,136 81.2% $42,789 -$2,967 -6.5% $38,510 $1,3742046 Fern Strasser 1EAUGUSTA ME $64,870 $50,534 77.9% $56,610 -$8,260 -12.7% $50,949 $4151868 Philip Hannan 1EAUBURN ME $90,439 $67,005 74.1% $76,388 -$14,051 -15.5% $68,749 $1,7452183 Philip Hannan 1EOXFORD ME $46,676 $31,564 67.6% $33,481 -$13,195 -28.3% $30,133 -$1,432

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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.

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7777

Retailers who executed early realized higher overall sell through.

50

75

100

125%

-6 -4 -2 0 2

Weeks Set Before (-) or After (+) Labor Day

Unit

Sel

lThro

ugh

Perc

ent

FactoryDecline

FactoryGrowth

Group 1 (early) sell through = 84.0%

Group 2 (mid) sell through = 82.2%

Group 3 (late) sell through = 78.9%

Hershey Halloween Unit Sell Through and Set DateKey Customers through 10/31/11

Source: Internal Customer POS

8

8888888

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

Final offers and images are subject to change

NEW CPC

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Action alley display and consumer support for Harvest CPC will drive $4.3M POS early in the season

"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.

Display ready ½ pallet wk 29

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

10

10101010

Candy should be central to all displays

Halloween Items % Purchased

Source: Hershey Seasonal Tracker - Halloween 2011

Candy

82%

IndoorDec.

32%

NoveltyCandy

29%

OutdoorDec.

28%

Acces-sories

27%

AdultCostume

22%

ChildCostume

21%

Mask,etc.

14%

PartySupplies

11%

Food

10%

DVD, CD

8%

Cards

8%

Non-FoodGift

7%

Dishes

6%

11

11

In Store

ClaimedHWN

PurchaseInfluencers

%

61

Price

61

Coupon/Special

31

StoreFlyers

23

Tradition

17

HWN Pkg

15

Advertising

10

Internet

6

In store displays are a key driver of purchases

Source: Hershey Seasonal Tracker – Halloween 2011

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12121212121212

FSI and TV support will continue in 2012

September 23, 2012- Save $1.00

when you buy 3 bags

- Full page with 40M circulation

Final offers and images are subject to change

October 14, 2012

- Save $1.00 when you buy 3 bags)

New!

REESE’S and KIT KATHalloween-Specific

REESE’S and KIT KATHalloween-Specific

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Hershey’s 2012 Halloween delivers new items, new graphics, and larger piece count assortment bags

"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.

100% Shipping Week 31 (8/25-8/31)

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• Maintain distribution of all SKUs in the seasonal aisle wk 31 through 10/31/12

High traffic displays of Core Snack Size at the lobby/cartrail is key to 90% sell thru

• Display ready pallet wk 32

"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.

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• Season long distribution in the seasonal aisle beginning wk 31 is critical to 90% sell thru

Hershey’s ATG Variety Bag is Walmart’s #1 Seasonal SKU and is 12.5% of the total 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.

• Door to Grocery AA wk 32• Display ready pallet

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• Maintain distribution of all SKUs in the seasonal aisle wk 31 through 10/31/12

Achieve 90% sell thru via lobby/cartrail displays of Jumbo Snack Size, a top 3 packtype

"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.

• Display ready pallet wk 35

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Feature the top brands & packtypes consumers seek to finish on pace to 90% sell thru

CARTRAIL

ACTION ALLEY

SEASONALAISLE

ANCHORENDCAPS

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2012 Halloween Planner