2018 HERSHEY RETAILER REWARDS PROGRAM

Submission Deadline: October 6th, 2017

INTRODUCING 2018 HERSHEY RETAILER REWARDS

✓Confection and Snacking Combined

✓Maintain Menu Approach

✓Core Snacking Added to Base Requirements

✓KRAVE & bark THINS Options

TOPLINE OVERVIEW

5 COMPONENTS within BASE REQUIREMENT• #1 PREPACKS

• #2 CONFECTION DISTRIBUTION

• #3 POINT OF PURCHASE MERCHANDISING

• #4 SEASONS

• #5 SNACKING DISTRIBUTION & MERCHANDISING

ADDITIONAL PARTICIPATION OPTIONS• PREPACK POWER-PLAY

• CMG DISTRIBUTION OPTIONS

• CMG SECONDARY MERCHANDISING OPTIONS

• KRAVE & bark THINS DISTRIBUTION OPTIONS

• KRAVE PREPACK OPTIONS

BASE REQUIREMENTS – CONFECTION PREPACKS

SELECT LEVEL THAT ALIGNS WITH STORE MERCHANDING STRATEGY

• LEVEL 1 – 0.5% REBATE• Take 7 Counter Units – 3 required (x)

• LEVEL 2 – 2.0% REBATE• Take 7 Shippers – 3 required (x)• Minimum 3 in 1st Half

• LEVEL 3 – 3.0% REBATE• Take 10 Shippers – 3 required (x)• Minimum 4 in 1st Half

1 Hershey Internal Analytics

Floor shippers drive a 15% lift in sales while on display1

#1

KING/STD BAR

MIXED SHIPPERS

HERSHEY TOP PERFORMERS – NATIONAL TOP 25 & REGIONAL

“THE NATIONAL TOP 25 GENERATE 298% GREATER VELOCITIES THAN THE AVERAGE C-STORE ITEM1”

TOP 25

NATIONAL

#2

1 Nielsen Total C-Store 12wk ending 2/18/17

BASE REQUIREMENTS – DISTRIBUTION AND POP MERCH

HERSHEY TOP PERFORMERS

• LEVEL 1 – 1.5% REBATE• Carry Top 25 National SKUs• Carry Next 25 per Hershey

• LEVEL 2 – 2.5% REBATE• Carry Top 25 National SKUs• Carry Next 30 per Hershey

• LEVEL 3 – 3.0% REBATE• Carry Top 25 National SKUs• Carry Next 35 per Hershey

POP MERCHANDISING – IMPULSE, COUNTER, OR UTC RACK

*LEVEL 1 ONLY

#2,3

LEVEL 1 LEVEL 2 LEVEL 3

BASE REQUIREMENTS - SEASONS

MAINTAIN BASE OR TRADE UP

• LEVEL 1 – 0.5% REBATE• Take REESE’S Standard at Easter,

Halloween, Holiday and one box of CADBURY CRÈME EGGS at Easter

• LEVEL 2 – 1.5% REBATE• Take 3 Seasonal Prepacks

• LEVEL 3 – 2.0% REBATE• Take 6 Seasonal Prepacks

1 Nielsen Total C-Store 52wks ending 12/24/16

#4

Hershey’s Instant Consumables and Novelty accounted for 70% of total seasonal sales in 20161

LEVEL 1 LEVEL 2 LEVEL 3

TOP PERFORMERS SNACKING DISTRIBUTION & MERCH#5

• LEVEL 1 – 5% REBATE• Carry 8 Hershey Top Performers

Snacking Items• LEVEL 2 – 9% REBATE

• Carry 10 Hershey Top Performers Snacking Items

• Take 2 Snacking Prepacks• LEVEL 3 – 12% REBATE

• Carry 12 Hershey Top Performers Snacking Items

• Take 2 Snacking Shippers

SELECT LEVEL THAT ALIGNS WITH STORE SNACKING STRATEGY

HERSHEY’S PREPACK POWER-PLAY OPTION

UP YOUR MERCHANDISING GAME WITH THE PROMOTIONAL PREPACK POWER-PLAY!

• SELECT any 3 PREPACKS – 1% REBATE* Minimum 1 in First Half.

1 Hershey Internal Analytics

Floor shippers drive a 15% lift in sales while on display1

ADDITIONAL PARTICIPATION OPTIONS – SECONDARY MERCH

SELECT UP TO TWO FIXTURES

• Endcap Rack – 2.0% REBATE• Secondary location for Core SKUs

• Take Home Rack – 1.0% REBATE• Primary or Secondary location for

emerging packtypes ~ Peg/ HTM Pouches• King Size Rack – 0.5% REBATE

• Secondary location for Core King Size

1 Video Mining 2015

Incremental CMG displays capture 1/3 of the category shoppers1

ADDITIONAL PARTICIPATION OPTIONS – CMG DISTRIBUTION

CONFECTION INNOVATION & REFRESHMENT DISTRIBUTION

• Confection First to Street – 1.0% REBATE• +6 Net New with Priority Innovation• COOKIE LAYER CRUNCH MINT(KING & STD)• REESE’S CRUNCH COOKIE CUP (KING & STD)• HERSHEY’S GOLD (KING & STD)

• Refreshment Distribution – 1.0% REBATE• +1 Net New with Refreshment IC Mint• +4 Net New with ICE BREAKERS ICE CUBES Gum

ADDITIONAL PARTICIPATION OPTIONS – TAKE HOME

CORE PEG, HTM POUCHES and VALUE

• Take Home Distribution – 1.0% REBATE• +4 Net New or Minimum 20 SKUs

Hershey has a 55% share of HTM Pouches and 7 of the Top 10 items1

1 Nielsen Total C-Store 52wks ending 2/18/17

ADDITIONAL OPTIONS – MEAT SNACKS AND bark THINS

KRAVE JERKY, KRAVE STICKS and bark THINS POUCHES

• KRAVE Jerky Pouches 2.7oz – 1.0% REBATE• +2 or Min 2 Items

• KRAVE Sticks – 1.0 % REBATE• +2 or Min 2 Items

• bark THINS Pouches 4.7oz – 1.0 % REBATE• +2 or Min 2 Items

HOT O.I. ALLOWANCES

ON KRAVE PREPACKS

2018 HERSHEY RETAILER REWARDS CONTRACT

See details on page 2 (back of contract)

LEVEL OF PARTICIPATION

• Level 1 Retailers ($1,500-$4,499)

•Comparable to 2016 P2

• Level 2 Retailers ($4,500-$9,999)

•Comparable to 2016 P3

• Level 3 Retailers ($10,000+)

*Utilize Hershey Target List to identify Level of Participation