2006 Annual Industry Review February 2007

Slide1: 

2006 Year End Confectionery Industry Review

USA Market: 

USA Market Retail Performance

2006 Retail Confectionery Sales: 

2006 Retail Confectionery Sales 52 week sales estimates January - December 2006 % $ Change Confectionery $28.9 +2.8% (Chocolate, Sugar, Gum) Sales in billions Estimates are based upon interpretation of IRI retail sales data, NCA Shipment Data, and Euromonitor

2006 Retail Channel Performance: 

2006 Retail Channel Performance Channel 2006 $ Sales 2006 % Growth Supermarkets $4.3 +0.1% *Wal-Mart $3.2 +6.7% Mass X Wal-Mart $1.3 1.5% Convenience Stores $4.2 +9.4% Drug Stores $2.4 +4.6% *Warehouse Clubs $2.1 -0.3 *Dollar Stores $.8 Even Vending $1.2 +0.5% *Bulk $1.5 -0.4 Based on 52 Week Sales – January - December 2006 Source: Sales figures are compiled by National Confectioners Association based on input from Information Resources, Inc. NCA/CMA Monthly Shipment Reports and U.S. Department of Commerce Sales Figures in billions

2006 Retail Category Sales: 

2006 Retail Category Sales Category $ Sales Growth Category Size (000 millions) Misc. Snacks +28.0% $220 Snack/Granola Bars +4.3% $1,915 Coffee +3.0% $3,017 Bakery Snacks +3.5% $860 Salty Snacks +2.6% $7,462 Candy & Gum +1.6% $8,000 Ice Cream -0.3% $4,402 Cereal -0.6% $6,108 Cookies -0.6% $3,919 Carbonated Beverages -1.2% $13,315 Milk -2.9% $10,823 Dry Fruit Snacks -3.5% $510 Information Resources FDMX 52 week sales through December 31, 2006 Supermarkets, Drug and Mass Only

Candy and Gum Rank 3rdAmong Food Categories: 

Candy and Gum Rank 3rd Among Food Categories IRI Food, Drug & Mass Excluding Wal-Mart 12/31/06

2006 Seasonal Performance: 

2006 Seasonal Performance What Affects Seasonal Sales? Date/Day of Holiday The Economy Consumer Confidence Consumer Mood Shopping Patterns/Habits Merchandising Strength/Visibility

Confectionery Seasonal Sales: 

Confectionery Seasonal Sales (** in millions of dollars) $ Sales 2006 Valentine’s Day $971 2006 Easter $1,884 2006 Halloween $2,146 2005 Christmas $1,389 Results as of January 2007 Source: Sales figures are compiled by National Confectioners Association based on input from Information Resources, Inc. NCA/CMA Monthly Shipment Reports and U.S. Department of Commerce

Holiday Dates/Days: 

Holiday 2005 2006 2007 Valentine’s Day Monday Tuesday Wednesday Easter 3/27 4/16 4/8 Halloween Monday Tuesday Wednesday Christmas Sunday Monday Tuesday Thanksgiving 11/24 11/23 11/22 Shopping Days 31 32 33 Holiday Dates/Days

Seasonal Confectionery Trends: 

Seasonal Confectionery Trends 2006 2005 2004 2003 2002 VALENTINE’S -4.0% -3.0% -7.6% +6.5% EASTER -7.6% +5.5% +2.2% -2.2% HALLOWEEN +2.4% +0.7% -0.4% CHRISTMAS -3.5% -1.4% -3.0% * IRI FD&M +0.1% +7.0% +2.3% +2.4% +1.0% +2.8%

USA Market: 

USA Market 2006 First Eleven Months Manufacturer Performance

2006 Confectionery Performance: 

2006 Confectionery Performance Category Manf. Sales % Chocolate $6.5 billion +0.9% Non-Choc. $3.1 billion +6.1% NCA Monthly Shipment Reports January – May 2006 Manufacturers’ Shipments January – November 2006