1

2010 Cycle 7 Retail Execution Meeting

June 2010

2

Key Messages

In 2010, we have a total POS plan of $1.471B, up +8.7% or $118M vs YA

CYTD, we’re off to a slow start; with total POS of $602.2M, up +6.5% or +$36.8M vs YA

In order to achieve our plan, we now need a strong second half; BOY POS growth must deliver +10% to hit our full year plan

All programming, inclusive of a strong second half seasonal plan, is in place to deliver the required BOY of POS

We need the Retail Team to execute the following:

281 rollback weeks, or 65% of 2010 plan total weeks

Achieve 90% sell thru, to achieve 2nd half 2010 seasons POS growth of +12.9%

With inventories in store and gold standard execution, together we can deliver our full year POS plan of +8.7%

3

2010 Walmart Key Metrics

2010 POS PLAN 2010 CYTD 2010 POS BOY

8.7% 6.5% 10.0%

8 Key Everyday Programs

281 Rollback Weeks

Halloween & HolidaySell Thru @ 90%

=2010 POS ESTIMATE

10.2%

Rest of Year

4

8.7% Plan

Take Home

CY2010

9.2%

Seasonal

5.7%

Impulse

7.7%

Grocery

-8.2%

Total

6.5%

$23.6 $9.5 $7.3 -$3.6 $36.8CY 2010 $M Growth

Growth has been driven by planned CY performance on Take Home

2010 CYTD POS Dollar Percent Change by Segment

Source: Retail Link - Walmart Week 201018

5

POS is estimated to finish +10.2%, +$139M in 2010

Take Home

$6

14

.4

$6

92

.4

Impulse

$2

27

.5

$2

49

.0

Seasons

$3

95

.0

$4

32

.6

Conf. Total$

1,2

36

.9

$1

,37

4.0

Grocery

$1

18

.4

$1

19

.9

Total

20092010Est.

$1

,35

5.3

$1

,49

4.0

12.7% 9.5% 9.5% 11.1% 1.3% 10.2%Est % Chg

2010 POS Estimate vs. 2009Confections Total = $1.374B, +$137.1M or +11.1%

Total = $1.494B, +$138.7M or +10.2%

6

2010 Walmart Key Metrics

2010 POS PLAN 2010 CYTD 2010 POS BOY

8.7% 6.5% 10.0%

8 Key Everyday Programs

281 Rollback Weeks

Halloween & HolidaySell Thru @ 90%

=2010 POS ESTIMATE

10.2%

Rest of Year

7

Retail inventories are in place and are up +28.1%placing future programs & SSO’s at risk

LY

Retail Dollar Inventory

$89,732,358

TY

$114,925,458

Hershey Confectionery Retail Dollar Inventory Snapshot

Source: Retail Link - Walmart Week 201018

Inventory up +28.1% or $25MM

8

King Size

TY

LY

$21.1M

Std Bars Mint Tins

$7.0M

Big Pk Gum

$2.3M$1.4M

Mini Cartons

$0.1M$1.3M

Hard Rolls

121.8% -11.8% 87.8% 64.6% -93.8% -37.3%% Chg

$9.5M

$12.2M$13.8M

$3.7M

$0.5M$0.8M

Impulse inventory is up +34% driven by King, Mint Tins and Big Pack (IB) Gum

Hershey Impulse Inventory by PacktypeWalmart 201018 vs. 200918

Source: Retail Link

9

6 Packs

TY

LY

$20.2M

$13.1M

CPC 12 oz

$9.9M$9.9M

8 Packs

$8.3M

$4.8M

CPC 40 oz

$7.4M

$2.3M

Twizzlers

$4.5M$5.0M

Pkg Choc< 10.1oz

$4.2M

$1.7M

GiantBars

$3.4M

$1.7M

Thtr Box

$1.6M

$3.3M

Ctns CPC 20 oz

$1.8M$1.4M

53.6% -73.8% 34.6%-0.1% 70.2% 221.7% -9.4% 142.5% 103.5% -50.3%% Chg

Take Home inventory is up +25% driven by increases on 6-packs, 8-packs, CPC 40 oz and

Giant BarsHershey Take Home Inventory by Packtype

Walmart 201018 vs. 200918

Source: Retail Link

10

0

1,000,000

2,000,000

3,000,000

4,000,000

0

50,000

100,000

150,000

200,000

250,000

5/1

5/2

5/3

5/4

5/5

5/6

5/7

5/8

5/9

5/1

05

/1

15

/1

25

/1

35

/1

45

/1

55

/1

65

/1

75

/1

85

/1

95

/2

05

/2

15

/2

25

/2

35

/2

45

/2

55

/2

65

/2

75

/2

85

/2

95

/3

05

/3

16

/1

6/2

6/3

6/4

6/5

6/6

6/7

6/8

6/9

6/1

06

/1

16

/1

26

/1

36

/1

46

/1

56

/1

66

/1

76

/1

86

/1

96

/2

06

/2

16

/2

26

/2

36

/2

46

/2

56

/2

66

/2

76

/2

86

/2

96

/3

0

Retail On Hand I nventory $

-15

.3%

13

.6%

14

.5%

14

.4%

6.6

%

5.1

%

-0.9

%

-8.2

%

-8.4

%

-6.3

%

-5.5

%

-12

.3%

-11

.0%

-10

.2%

14

.1%

10

.2%

-3.5

%

4.8

%

7.7

%

15

.3%

19

.6%

12

.0%

1.3

%

-1.2

%

-7.2

%

13

.9%

-1.4

%

9.3

%

0.2

%

5.2

%

-4.6

%

5.2

%

7.5

%

7.7

%

14

.3%

16

.3%

15

.2%

POS $ % Chg

POS $

2010 Retail On Hand Inv

2009 Retail On Hand Inv

2010 POS $

2009 POS $

24/26 On Hand Retail DAILY Inventory and POS $

Source: Retail Link

24/26oz Syrup inventory has enabled significant retail activity and is currently up +36% vs LY

Memorial Day LY 5/25/09 – Wk 17

11

Everything is changing… Retail execution is more aggressive and not necessarily driven by Home

Office

12

You’ve already demonstrated our ability to win in the changing operational environment

13

CPC

POS$'s

$40

8PK/THTR

$39

S'mores

$36

KINGSIZE

$30

STDBARS

$25

SYRUP

$19

TWIZZ

$19

FALLBAKE

$17

ALLOTHER

$44

84% of BOY everyday promotional volume will be driven by 8 key programs

BOY POS $ Promotional Volume (M)

14

The rollback plans are on track with 149 of 430 weeks completed and 65% or 281 weeks

remaining

ExecutedTo Be

ExecutedPromo Packtype

Current Total

CPC 12 oz 16 4 12

8 Packs 52 21 31

6 Packs 22 8 14

CPC 40 oz EDLC EDLC EDLC

Twizzlers 16 oz. 45 13 32

Giant/XL Bars 21 7 14

Theatre Boxes EDLC EDLC EDLC

Cartons 26 13 13

Bliss 51 21 30

Pieces 52 21 31

BS Roll 8-Packs 16 0 16

Totals 430 149 281

King Size 39 17 22

Standard Bars 21 8 13

Gum and Mint 12 7 5

Grocery 57 9 48

65% to be

executed

15

Cycle 7Key Promotional Programming

16

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

Leverage all elements of the S’mores program to secure multiple display locations for the peak

season

July 4thWave 3(27% of order)

PEAK SEASON

Weeks 10-32

17

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

The Syrup Rollback is being supported with 106K of Bonus, an FSI, Walmart TV and COMAC (20-23)

Weeks 14-33

Wave 2(106K Cases)

Walmart TV

18

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

Weeks 14-37

Packaged Candy Rollback has been extended into September to drive POS $’s with Hershey’s #2

packtype

National TV Brand Advertising

SSO

19

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

The Standard Bar rollback is planned to drop week 21 supported with an SSO and Brand Advertising

Weeks 21-34

Tray 1 Tray 2 Tray 3

Wave 1

National TV Brand Advertising

Wave 2

20

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

YTD King Size is +27.3% and will be supported with an SSO the first week of Cycle 7

National TV Brand Advertising

Weeks 1-39

Tray 1 Tray 2 Tray 3

SSO

21

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4thSSO FSI

Ensure execution of the week 21 Twizzlers SSO to capitalize on the FSI and the July 4th Holiday

National TV Advertising

Weeks 5-48

22

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

Yearlong EDLP

YTD 8-Packs are +46.9% generating almost $46M in POS making it Hershey’s #1 packtype

National TV Brand Advertising

SSO

23

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

Continue to drive Theater Box POS $’s by cross merchandising with other $1 packtypes

National TV Advertising

SSO

24

Cycle 7Additional Programming

25

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

National TV Advertising

SSOCOMAC

Our Yearlong Pieces EDLP will be supported with COMAC and SSO’s prior to the July 4th Holiday

26

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

Ensure continued execution of the Gum & Mint PDQ’s as it is critical to the overall success in D82

National TV Advertising

Tray 1 Tray 2 Tray 3

27

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

July 4th

Continue to execute the Giant Bar PDQ’s and place manual orders where necessary

National TV Brand Advertising

Weeks 12-22

28

Continue to secure/maintain secondary display activity

on the entire Bliss line

20 21 22 23 24 25 26 276/12-6/18 6/19-6/25 6/26-7/2 7/3-7/9 7/10-7/16 7/17-7/23 7/24-7/30 7/31-8/6

WALMART WEEK

Weeks 12-48

July 4th

National TV Advertising

29

Example of Gold Standard retail execution in preparation for the Fourth of July Holiday

Syrup in Dairy Cooler

Syrup Saddle Bag RackKing Size FE EC Smores Train Action Alley Stack Base

Smores & $1 Bars (KS or 8 pks) COMAC American Summer Aisle

Smores & Twizzler Bodega EC

Summer Aisle Syrup Bodega End Cap

CPC Grocery EC

8 pks Cart Rail Giant Bars FE EC 40 oz. CPC FE EC IB Gum/mint FE EC

Theater Box in Electronics

Target execution for weeks 21-23

30

2010 Walmart Key Metrics

2010 POS PLAN 2010 CYTD 2010 POS BOY

8.7% 6.5% 10.3%

8 Key Everyday Programs

281 Rollback Weeks

Halloween & HolidaySell Thru @ 90%

=2010 POS ESTIMATE

10.0%

Rest of Year

31

Second half 2010 seasons will deliver +12.9% POS growth at a 90% sell thru level

Halloween

2009 2010

$133.4$145.3

Holiday

$95.3$113.0

2nd Half Seasons

$228.7

$258.3

$11.9 $17.7 $29.6Chg

8.9% 18.6% 12.9%% Chg

Walmart Seasonal POS ($M) 2009 versus 2010 Estimate

Assumes Sell Thru of 90% for 2010 Halloween and Holiday programs

32

2010 Walmart Key Metrics

2010 POS PLAN 2010 CYTD 2010 POS BOY

8.7% 6.5% 10.0%

8 Key Everyday Programs

281 Rollback Weeks

Halloween & HolidaySell Thru @ 90%

=2010 POS ESTIMATE

10.2%

Rest of Year

33

Base Business Distribution on all authorized items for the store (tagged, in-stock, correct # of facings) Rollback signage on all Rollback items

Cycle 7 Key Programs S’mores, Syrup, CPC 12oz, and 2/$1 Standard Bar Rollbacks

Presell execution of all SSO quantities Leverage FSI, TAB, and COMAC where applicable Maximize display space with executions across all key programs Use good business judgment when placing manual orders to maintain displays Target secondary locations to sell thru residual promotional product

Yearlong Rollbacks/EDLP’sTwizzlers, King Size, Bliss, 8pk/Theater Boxes, and HSY Pieces

8pks, Bliss, King Size - Utilize the merchandising sheets to punch in everyday items to obtain or maintain your “A” displays

Ensure 100% distribution/in-stock on all items on the side counter Place rollback signs on all items Ensure execution on all SSO’s in “A” display location when product arrives Utilize POS reports and place manual orders to maintain displays

Cycle 7 Action Plan