Category Sales

Opportunities District #7

2

Agenda

Buyer Conversion (from Nielsen Panel data)

Category Results/Hershey Results

– Hannaford Totals … By District, By Store

Opportunities

• Seasonal Candy Sales

• Everyday Candy sales

• Hershey Baking

• Hershey Syrup & Toppings

• Consumer Support

Recap

3

BUYER CONVERSIONHannaford has the opportunity to convert more candy buyers in their stores

2008

CMG BuyerConversion

45

2009

45

2010

42

Total CMG Buyer ConversionHannaford CTA – 52wks ending 12.25.2010

Walmart

53

Food Lion

44

PriceChopper

42

Stop &Shop

35

Walgreens

35

Shaws

32

Hannaford

26

Take Home Buyer ConversionHannaford vs Competitive Set – 52wks ending 12.25.2010

Walmart

64

Stop &Shop

51

PriceChopper

50

Walgreens

43

Shaws

39

Food Lion

34

Hannaford

34

Instant Consumable Buyer ConversionHannaford vs Competitive Set – 52wks ending 12.25.2010

Walmart

51

Walgreens

34

Shaws

29

Stop &Shop

27

PriceChopper

27

Food Lion

22

Hannaford

21

Seasonal Buyer ConversionHannaford vs Competitive Set – 52wks ending 12.25.2010

Source: AC Nielsen

4

CATEGORY RESULTS:Candy is big and growing slightly faster than the rest of store

CO

FFEE

$ %Change

9.1B

OT

WATER

9.0

BEER

7.2

CRA

CK

ERS

6.2

SN

ACKS

6.2

CAN

DY

4.9

Tota

lSto

re

4.6

ICE

CREA

M

2.9

BREAD

2.4

PA

STA

1.0

CARB

BEV

0.8

CEREAL

0.8

SO

UP

-1.2

$55M $22M $89M $75M $42M$55M $105M $49M $127M $61M $37M $240MDollar Sales

Category Performance: Dollar % ChangeHannaford CTA – 52wks ending 1.22.11

Source: AC Nielsen

5

CATEGORY RESULTS:Hannaford has had strong confection results

2007

HAN

NAFO

RD

TO

TAL

FOO

D6.5%

3.5%

2008

5.1%

1.9%

2009

6.1% 6.0%

2010

4.9%5.3%

Candy Category Growth: Dollar % ChangeHannaford & Total US Food – 52wks 2007-2010

Source: AC Nielsen

6

CATEGORY RESULTS:Front End Candy & off shelf promo’s are driving the category

Source: AC Nielsen

NC

PACKAGED

KIN

GSI

ZE

MULT

IPACK

BIG

PKGUM

BottlePack

STDLO

OSE

XLBars

Min

t Tins

MP

GUM

CHPACK

AGED

SNK

SIZE

AllOth

er

Multipack King Non ChocolateHershey Milk 6 Pack Reese King Size Brachs Candy Corn

$ Change $293,918 $127,610 $107,300

#1 Dollar Growth Items

Hannaford CMG: Packtype ContributionHannaford CTA – 52wks ending 1.1.11

+4.9%

+$962K

+$764K

+$528K

+$385K

+$207K+$149K

+$141K+$45K -$33K -$37K -$365K

7

CATEGORY RESULTS: Smores, Twizzlers and King size drove growth for Hershey and the category

Multi

pack

King

Non

Chocolate

Chocolate

Package

d

XLBar

s

Min

t Tins

Bottle

Packs

Snack

Stan

dard

Big

PackGum

All

Oth

er

Source: AC Nielsen

Hershey CMG: Packtype ContributionHannaford CTA – 52wks ending 1.1.11

+5.2%+$570K

+$355K

+$194K

+$140K+$1K -$1K -$1K -$19K -$20K -$26K -$256K

8

HANNAFORD / HERSHEY RESULTSTotal Candy, Mint, Gum 52 Week ending 1/21/11 : By District

52 Week 1/21/10 52 Week 1/21/11 % Change 52 Week 1/21/10 52 Week 1/21/11 % Change 52 Week 1/21/10 52 Week 1/21/11 % Change

TOTAL HANNAFORD

$18,977,846 $19,848,900 4.59% $1,750,725 $1,804,641 3.08% $554,343 $941,114 69.77%

DISTRICT #6 $1,367,390 $1,405,639 2.80% $117,736 $112,892 -4.11% $32,610 $58,115 78.21%

DISTRICT #7 $1,380,590 $1,420,773 2.91% $117,668 $121,954 3.64% $38,868 $68,419 76.03%

DISTRICT #19 $1,250,165 $1,311,241 4.89% $107,953 $112,291 4.02% $36,870 $58,243 57.97%

DISTRICT #20 $834,269 $871,145 4.42% $75,632 $79,222 4.75% $21,772 $41,747 91.75%

DISTRICT #21 $869,168 $941,066 8.27% $82,755 $83,353 0.72% $21,147 $41,299 95.29%

CENTRAL DIVISION $5,644,007 $5,877,373 4.13% $501,744 $509,712 1.59% $151,267 $267,823 77.05%

HERSHEY - EVERYDAY KING SIZEDistrict # HERSHEY TOTAL ( CANDY - MINT- GUM ) HERSHEY - EVERYDAY STANDARD BARS

9

52 Week 1/21/10 52 Week 1/21/11 % Change 52 Week 1/21/10 52 Week 1/21/11 % Change 52 Week 1/21/10 52 Week 1/21/11 % Change

08016 $78,992 $87,883 11.26% $8,160 $9,226 13.07% $1,942 $6,203 219.42%

08120 $158,117 $145,242 -8.14% $12,249 $11,434 -6.65% $3,695 $6,050 63.75%

08164 $115,850 $115,111 -0.64% $10,823 $9,346 -13.65% $2,790 $5,497 97.04%

08177 $147,227 $147,922 0.47% $10,061 $10,763 6.98% $3,465 $7,400 113.54%

08178 $150,089 $144,042 -4.03% $15,866 $13,498 -14.92% $4,756 $7,522 58.16%

08181 $100,363 $104,022 3.65% $8,596 $9,542 11.01% $3,095 $4,952 60.03%

08185 $81,054 $92,245 13.81% $7,850 $7,967 1.49% $2,274 $4,326 90.20%

08190 $153,001 $151,221 -1.16% $11,316 $11,829 4.53% $6,187 $7,400 19.59%

08242 $57,575 $72,491 25.91% $3,576 $7,936 121.93% $1,056 $3,514 232.79%

08305 $50,527 $57,059 12.93% $6,389 $5,801 -9.20% $1,797 $2,656 47.77%

08311 $131,751 $135,718 3.01% $9,513 $9,993 5.05% $3,279 $6,243 90.38%

08329 $156,046 $167,817 7.54% $13,268 $14,617 10.17% $4,532 $6,657 46.89%

HERSHEY TOTAL ( CANDY - MINT- GUM ) HERSHEY - EVERYDAY STANDARD BARS HERSHEY - EVERYDAY KING SIZEStore #

HANNAFORD / HERSHEY RESULTSTotal Candy, Mint, Gum 52 Week ending 1/21/11 : By Store

10

11

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Easter Key Messages

2011 industry Easter outlook • Easter 2010 sales increased 3.0% despite one less selling week

• Hershey’s was over 82% of the growth with sales up 6.7% or $15.2M

• Easter 2011 is April 24th, making it a 69 day season

• This is 3 weeks longer than 2010

• Easter 2011 retail category sales are expected to grow 10-12%

• Hershey’s driving growth at 12–16%

Hershey at Hannaford 2010 and 2011 outlook• Hershey Easter Sell thru for 2010 was 75.6% (goal was 92-

95%)

• Hershey 2011 order is down 3.5% for the season

• Pricing was an issue that led to poor sell thru in 2010

• Pricing issues especially on Multi packs has been fixed

• Consumer offers are set up to target 95% Sell thru or better

13

OPPORTUNITIES: SEASONALDisplay Ready Cases …. Labor saving and Easier to Shop

14

15

3 National FSI Insertions

Merchandising Vehicles

Print Ads In-Store POS

Kraft Partnership

Website

15 wks Dedicated Advertising

Fall Extension

*Note: Graphics subject to change, Please refer to 2011 Tailgating program for late season details on S’mores

Increased 2nd FSI Value!!

OPPORTUNITIES: EVERYDAY CANDY Strong and balanced activation will drive growth in 2011

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2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 2010%

Change

TOTAL HANNAFORD

$297,364 $380,052 27.81% $402,474 $489,754 21.69% $459,743 $535,028 16.38% $1,159,581 $1,404,835 21.15%

DISTRICT #6

$19,909 $24,717 24.15% $21,443 $27,158 26.65% $23,742 $27,011 13.77% $65,095 $78,886 21.19%

DISTRICT #7

$20,334 $26,787 31.73% $25,772 $32,073 24.45% $28,652 $29,548 3.13% $74,758 $88,408 18.26%

DISTRICT #19

$18,320 $21,228 15.87% $19,528 $21,493 10.07% $20,197 $23,200 14.87% $58,045 $65,921 13.57%

DISTRICT #20

$16,476 $26,742 62.30% $33,952 $42,015 23.75% $42,469 $49,603 16.80% $92,897 $118,359 27.41%

DISTRICT #21

$16,617 $26,787 61.20% $25,772 $32,073 24.45% $28,652 $29,548 3.13% $71,040 $88,408 24.45%

CENTRAL DIVISION $91,657 $126,260 37.75% $126,466 $154,812 22.41% $143,712 $158,910 10.58% $361,836 $439,983 21.60%

STORE #

S'mores Period #1 ( 4-1 thru 5/31 ) S'mores Period #2 ( 6/1 -7/15 ) S'mores Period #3 ( 7/16 - 9/15 )TOTALS

HANNAFORD / HERSHEY MILK 6 PACK RESULTSSummer 2010 : By District

17

2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 2010%

Change

08016$1,527 $1,969 28.96% $2,183 $2,661 21.92% $2,316 $1,985 -14.31% $6,026 $6,615 9.78%

08120$3,405 $3,227 -5.21% $4,467 $4,395 -1.61% $5,438 $5,299 -2.55% $13,310 $12,922 -2.92%

08164$1,700 $2,386 40.35% $2,095 $2,936 40.15% $1,673 $2,315 38.34% $5,468 $7,637 39.66%

08177$2,333 $2,115 -9.32% $2,328 $3,145 35.11% $2,062 $2,106 2.12% $6,723 $7,367 9.57%

08178$1,448 $2,099 44.95% $1,888 $1,952 3.43% $2,145 $2,383 11.12% $5,481 $6,435 17.41%

08181$1,387 $1,489 7.38% $1,548 $1,773 14.55% $1,604 $1,552 -3.21% $4,538 $4,814 6.08%

08185$1,607 $2,380 48.07% $1,584 $2,410 52.17% $1,507 $1,942 28.89% $4,698 $6,732 43.30%

08190$2,060 $3,234 57.03% $3,131 $3,543 13.15% $3,765 $3,156 -16.19% $8,957 $9,933 10.90%

08242$898 $1,319 46.79% $936 $1,044 11.50% $971 $945 -2.67% $2,805 $3,307 17.90%

08305$560 $1,422 153.95% $1,103 $1,877 70.10% $1,347 $2,140 58.82% $3,011 $5,439 80.65%

08311$1,850 $2,376 28.43% $2,035 $2,867 40.89% $2,674 $2,200 -17.74% $6,559 $7,443 13.48%

08329$1,560 $2,771 77.58% $2,474 $3,468 40.21% $3,149 $3,526 11.95% $7,183 $9,765 35.94%

TOTALSSTORE #

S'mores Period #1 ( 4-1 thru 5/31 ) S'mores Period #2 ( 6/1 -7/15 ) S'mores Period #3 ( 7/16 - 9/15 )

HANNAFORD / HERSHEY MILK 6 PACK RESULTSSummer 2010 : By Store

18

Leverage 2011 HERSHEY’S S’mores POS to create excitement within the store

3D Standee Balloons 4-Tier Display

Order

______

Back

Front

Note: Hershey Reps can order and supply Twizzlers display units

E-Day 24 Ct Case

Hannaford

#1356005

Order

______

Order

______

19

Advertising:

TV

Radio

National FSI

Consumer Programs

Merchandising

TWIZZLERS TV Campaign

Feb

TWIZZLERS Radio - 30/30 Advertising

6/26 FSI

Landmark Summer Sweepstakes

Bonus TWIZZLERS Everyday TWIZZLERS

Mar JunMayApr AugJul SepJan Oct Nov Dec

8/7 FSI

Incremental

OPPORTUNITIES: EVERYDAY CANDY2011 TWIZZLERS brand marketing plan

20

2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 2010%

Change

TOTAL HANNAFORD

$214,005 $235,474 10.03% $190,760 $198,205 3.90% $224,563 $247,471 10.20% $629,328 $681,150 8.23%

DISTRICT #6

$13,103 $16,430 25.39% $13,316 $14,823 11.32% $15,835 $18,171 14.75% $42,254 $49,424 16.97%

DISTRICT #7

$15,364 $16,719 8.82% $14,562 $14,371 -1.31% $15,625 $17,023 8.95% $45,552 $48,113 5.62%

DISTRICT #19

$14,526 $17,861 22.96% $9,666 $13,617 40.88% $12,076 $14,488 19.97% $36,268 $45,966 26.74%

DISTRICT #20

$9,050 $10,186 12.55% $7,915 $9,458 19.49% $9,464 $11,020 16.44% $26,429 $30,664 16.02%

DISTRICT #21

$10,499 $11,097 5.70% $8,178 $9,118 11.49% $9,636 $10,438 8.32% $28,313 $30,653 8.26%

CENTRAL DIVISION $62,542 $72,293 15.59% $53,637 $61,387 14.45% $62,636 $71,140 13.58% $178,816 $204,820 14.54%

STORE #

Twizzlers Period #1 ( 4-1 thru 5/31 ) Twizzlers Period #2 ( 6/1 -7/15 ) Twizzlers Period #3 ( 7/16 - 9/15 )TOTALS

HANNAFORD / TWIZZLER RESULTSSummer 2010 : By District

21

2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 $ Sales 2010 $ Sales %

Change 2009 2010%

Change

08016$735 $700 -4.77% $380 $604 58.94% $467 $333 -28.63% $1,582 $1,637 3.49%

08120$1,464 $1,529 4.45% $1,122 $1,336 19.09% $952 $569 -40.20% $3,538 $3,434 -2.93%

08164$1,417 $1,067 -24.70% $724 $982 35.64% $762 $611 -19.86% $2,903 $2,660 -8.38%

08177$1,751 $912 -47.92% $1,697 $922 -45.67% $820 $784 -4.39% $4,268 $2,618 -38.66%

08178$1,491 $1,692 13.48% $963 $901 -6.44% $809 $789 -2.47% $3,263 $3,382 3.65%

08181$1,074 $1,310 21.97% $1,115 $790 -29.15% $358 $556 55.17% $2,547 $2,656 4.26%

08185$1,230 $1,354 10.09% $651 $975 49.75% $487 $134 -72.57% $2,368 $2,463 4.00%

08190$1,497 $2,441 63.02% $903 $782 -13.39% $604 $498 -17.55% $3,004 $3,721 23.86%

08242$516 $661 28.23% $183 $318 73.35% $230 $101 -56.06% $929 $1,080 16.27%

08305$388 $1,132 191.75% $374 $258 -31.02% $264 $82 -68.88% $1,026 $1,472 43.54%

08311$1,136 $931 -18.05% $694 $834 20.17% $828 $503 -39.28% $2,658 $2,268 -14.68%

08329$847 $1,430 68.77% $391 $586 49.71% $577 $492 -14.79% $1,816 $2,508 38.11%

TOTALSSTORE #

Twizzlers Period #1 ( 4-1 thru 5/31 ) Twizzlers Period #2 ( 6/1 -7/15 ) Twizzlers Period #3 ( 7/16 - 9/15 )

HANNAFORD / TWIZZLER RESULTSSummer 2010 : By Store

22

OPPORTUNITIES: EVERYDAY CANDY New Twizzlers 4 shelf unit for cross merchandising

•2/$4.00 EDLP

•Earn 32% Everyday

•Summer Long Consumer offer

Req #: D88171

Twizzler Black Licorice 24 / 16 oz #1464379

Twizzler Sweet & Sour 12 / 11 oz #1464478

Twiz. Cherry Pull & Peel 24 / 14 oz #0688804

Twizzler Strawberry 24 / 16 oz #1352509

Note: Hershey Reps can order and supply Twizzlers display units

23

24

120 ct syrup mod

12 cases on 1 hutch

Small Stores Large Stores

240 ct syrup mod

24 cases on 1 hutch

OPPORTUNITIES: SYRUP & TOPPINGS Summer Co-Marketing Event … Summer offer with $1.00 Ice Cream

25

26

27

Recap … Questions

Thank You!!!