CYCLE 3 - 2012

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Hannaford Cycle 3 - 2012

Data

• Valentine Results

• Hannaford business update

Promotional Events (The Big 4)

1. Easter

• FSI Support

• Hannaford Tear Pads

3. Everyday Loose bars

• Standard & King Size

• Hannaford Tear pads

• Sales Contest

3. HTM activity

• New Almond Pieces

• Coming Soon “Rolo”

4. Innovation/Ensure Distribution

• Jolly Rancher Crunch N Chew

• 4 – new JR CnC items

• Bliss Dark

• Cookies N Crème King

Merchandising

– New Syrup Rack POG

– New FE side kick POG

Hannaford ”Gold Standard”

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Valentines 2012 Results

Top Line Results

– Sell Thru in Dollars = 89.1%

– Sell thru in Units = 86.2%

Notes:

– Order was written down 5%

– King size had less then 50% sell thru

– Seasonal ct goods continue to hurt the overall ST based on poor merchandising at store level.

– Exchange items and heart boxes had moderate success

– Core CPC items did fairly well, but Hugs items were at 80%

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Hannaford Nielsen TrendsTotal Confection business and Key Pack Types

4 / 12 / 52 Week Results 52 WEEKS

Hannaford W/E 1/28/12 Dol SalesDol Sales

% Chg Share TYShare Pt.

Chg Dol SalesDol Sales

% Chg Share TYShare Pt.

Chg Dol SalesDol Sales %

Chg Share TYShare Pt.

Chg

Candy / Mint / Gum Category $3,389,133 -2.7% 100.0 0.0 $13,438,180 0.5% 100.0 0.0 $59,524,282 1.7% 100.0 0.0CMG Hershey Total $1,084,217 5.5% 32.0 2.5 $4,138,050 9.4% 30.8 2.5 $19,424,180 2.6% 32.6 0.3CMG Mars Total $927,582 -5.3% 27.4 -0.7 $3,130,349 -4.7% 23.3 -1.3 $15,714,264 1.2% 26.4 -0.1CMG Wrigley Total $172,305 -9.0% 5.1 -0.4 $550,495 0.7% 4.1 0.0 $2,858,883 10.2% 4.8 0.4

Ch Packaged Candy $983,265 1.0% 100.0 0.0 $4,289,372 1.0% 100.0 0.0 $15,846,206 3.6% 100.0 0.0Ch Packaged Candy Hershey $442,124 15.2% 45.0 5.5 $2,008,119 13.2% 46.8 5.1 $6,807,926 3.0% 43.0 -0.3Ch Packaged Candy Mars $358,063 -4.5% 36.4 -2.1 $1,264,543 -8.8% 29.5 -3.2 $5,813,896 6.9% 36.7 1.1Ch Packaged Candy Lindt/Ghir $96,819 -1.0% 9.8 -0.2 $680,541 2.5% 15.9 0.2 $1,593,811 2.4% 10.1 -0.1

Std Loose Candy $320,397 -7.6% 100.0 0.0 $1,052,975 0.3% 100.0 0.0 $5,023,309 1.9% 100.0 0.0Std Loose Candy Hershey $141,616 -9.4% 44.2 -0.9 $439,815 -1.4% 41.8 -0.7 $2,184,849 5.6% 43.5 1.5Std Loose Candy Mars $90,157 -10.0% 28.1 -0.7 $266,530 -6.7% 25.3 -1.9 $1,391,925 -6.6% 27.7 -2.5Std Loose Candy Nestle $22,345 -11.7% 7.0 -0.3 $60,362 -10.2% 5.7 -0.7 $309,126 2.3% 6.2 0.0

King Size Candy $132,225 1.4% 100.0 0.0 $377,009 -2.3% 100.0 0.0 $1,855,847 5.1% 100.0 0.0King Size Candy Hershey $77,585 6.0% 58.7 2.5 $214,171 1.3% 56.8 2.0 $1,052,493 7.4% 100.0 44.5King Size Candy Mars $40,818 -2.1% 30.9 -1.1 $118,017 -5.3% 31.3 -1.0 $588,333 2.3% 100.0 67.4King Size Candy Nestle $8,699 -6.5% 6.6 -0.6 $26,144 -2.8% 6.9 0.0 $130,837 3.1% 100.0 92.8

4 WEEKS 12 WEEKS

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Easter 2012

Overall Sell thru in ‘11 = 89%. W/out Ct goods = 93%

We must fix the Seasonal ct good merchandising issue to be successful.

Seasonal Ct Goods need to be viewed as an IC with perimeter displays

Factory in 2012 is up +12.9% or $181k

A strong sell thru in 2011 season helped create an improved 2012 order.

The 2012 factory growth is focused on our top 10 items, mainly CPC & Multi-packs. Gaining better ACV by store of our top items

Fixing the mix on our top10 items was the goal in ’12 So the 2012 season will not offer new items but better ACV on our best items

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Multipacks & CPC40M circulation

Early Season FSI 2/26/12 - 2 weeks after Valentine’s

Late Season FSI 3/25/12 - 2 weeks prior to Easter

CPC & Novelty40M circulation

FPO FPO

New for 2012 - Multipacks will be included in early FSI

Hershey will feature 2 national FSIs in 2012 – one early and one late season

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Easter 2012 Hannaford Exclusive Tear Pads

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Congratulations to our Baking & Kiss Contest Winners

Now lets turn our focus on …

EASTERAND

LOOSE BARS

We can dominate Q1 and set ourselves up for a strong 1st half

by focusing on these 2 areas

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Hershey “Loose Bar Sales Contest”

Loose Bars– Standard Bars

– King Size

– Easter Count Goods

Tools – Sales Data 3/1 – 4/7/12

– Seasonal & Non Seasonal IRC’s

– NCAA point Of Sale

– Easter Point Of sale

Contest Rules– Average Territory Increase vs.

LY

– (3) Divisions (Alb, NE & All Other)

– (3) Winners - $250, $150 & $100

How do we keep it fair?

– Rep #1• 9 Stores

• 900 Units Sold in 2010

• 1,800 units sold in 2011

• Territory % Increase 100%

– Rep #2 • 2 Stores

• 200 Units sold in 2010

• 600 Units sold in 2011

• Territory % Increase 200%

– Rep #2 Wins!

Weekly updates can be used like a season with stores

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Hershey’s everyday merchandising solutions enable easy execution of NCAA displays

Mini 4-Shelf

Req # D88173

Hex Bin

Req # D88173

IC Mini 4-Shelf

Req # D88534

Counter Unit

Req # D88357PnP

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Utilize REESE’S NCAA March Madness POS to connect with shoppers and trigger purchase in-store

Event POS Options

REESE’S March Madness Balloons

Available 1/13/12

Delivers with Shippers/Mods

Available 1/13/12

Force out and Genco Requisition

Req. # 21 27 132

REESE’S March Madness Tearpads

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Leverage POS for Singles Contest

Note: POS materials will be distributed directly to Hershey’s Retail Sales team per DSM allocation

4-shelf Display

Mylar Balloons

Two-sided Standee

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Hannaford “Gold Standard” Points Of InterruptionAll of the POI’s listed below are perimeter displays and are in addition

to the seasonal aisle

1. Hershey 4 sided or 2 Sided Rack

2. Hershey Syrup rack by Milk Cooler

3. Easter Count Goods On perimeter (W/ tear pad)

4. Easter 11 oz Bag CPC on Perimeter (W/ tear pad)

5. Easter Big Bag CPC on Perimeter (W/ tear pad)

6. Easter Reese’s / Cadbury Multi Packs on Perimeter (W/ tear pad)

7. Standard Bars (W/ tear pad)

8. King Size Bars (W/ tear pad)

9. Hershey 8 packs (W/ tear pad)

10. Theatre Boxes (W/ tear pad)

NOTE: All displays help drive sales. Cross merchandising offers a great opportunity during the holidays.

I.E. > Utilize the Hannaford 3 tier Baskets to cross merchandise our cocoa and baking bars with other baking ingredients

11. Twizzlers Large Bags (DRC’s in store)

12. Frost Mint shippers

13. Jolly Rancher Crunch N Chew Display

14. Hershey Pieces Display featuring New Almond

15. Bliss Display with New Dark Caramel

16. Spring Baking Displays featuring Hershey / Reese’s baking Chips