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Sixlets® Everyday Presentation This Business Plan is confidential. It is intended solely for the...

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Sixlets® Everyday Presentation This Business Plan is confidential. It is intended solely for the addressee. Access to this Business Plan by any other person is unauthorized. If you are not the addressee you are prohibited from copying it, distributing it or disclosing it to anyone other than the addressee.
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Sixlets® Everyday Presentation

This Business Plan is confidential. It is intended solely for the addressee. Access to this Business Plan by any other person is unauthorized. If you are not the addressee you are prohibited from copying it, distributing it or disclosing it to anyone other than the addressee.

• Adults 18-64 (Bull's-Eye 14-25)For:

• A snack-sized chocolatey treatWho Want:

• A classic chocolatey candySixlets® Is:

• A great tasting familiar experience that takes them back to a positive and memorable time in their childhood

That Delivers:

• Sixlets® offer a recognizable, nostalgic candy product that consumers remember enjoying when they were a child... All at great valueBecause:

Sixlets® Current Brand Positioning

2Confidential

Sixlets® consumer usage occasions fall into three distinct buckets.

3Confidential

Immediate Consumption Take-Home Seasonal

• Count Goods• King Size• Theater Box• Changemakers

• 4oz & 6oz Peg Bags• 4oz Laydown Bag• 9oz Snack Packs• Milk Carton

Seasonal Graphics including:• 4oz Laydown Bags• 14oz Laydown Bags• Trick-or-Treat Sized Bags• Theater Boxes• Candy Canes

Consumers looking for a snack-size chocolatey treat for…

Core Target = Teens & Young Adults Ages 14-24

Core Target = Moms Ages 21-40

Core Target = Moms & Adults Ages 21-65

On-the-Go Snacking, Potty Training, Lunch Boxes, etc.

Gifting, Parties, Hand-Outs, Candy Dishes, etc.

2011 FY 2012 FY 2013 FY 2014 Rolling 52 Weeks*

Sources: SweetWorks® Financials, IRI Mulo-C, 52-Weeks ending 12/28/13*52 Weeks Ending June 30, 2014

SweetWorks® is selling more Sixlets® than ever with no signs of slowing down!

4Confidential

+14.8%

Sixlets®Grew

than the Category in

2013

+19.9%

8X FASTER

+20.3%

Source: IRI Mulo-C, 24-Weeks ending 7/13/14; IRI Mulo-C, 4-Weeks ending 7/13/14

IRI data shows even stronger trends at retail for Sixlets® brand, especially in the last 4 weeks.

5Confidential

Dollar Sales

+14.7%Year-to-Date

Dollar Sales

+60.4%Latest 4 Wks

Key Items Driving Growth:• 4oz Everyday Laydown Bag• 6oz Everyday Peg Bag• 27oz Everyday Laydown Bag

Key Items Driving Growth:• 14oz Easter Laydown Bag• 4oz Everyday Laydown Bag• 6oz Everyday Peg Bag• 27oz Everyday Laydown Bag

Sixlets® brand growth can be attributed to two key reasons.

6Confidential*Made in a facility that does not process nuts

Product attributes align with key food trends

#1Celebration by SweetWorks® is helping energize core Sixlets®

#2

Sixlets® plays in perfectly with one of the top food trends of 2014!

• Percentage of adults trying to cut down or avoid Gluten continues to reach new highs per recent NPD study.– Not just for consumers who are Gluten intolerant the majority who are

choosing Gluten Free foods are doing so to simply eat healthier.

• Sixlets® always have been a great Gluten Free chocolatey treat!

7Confidential

Almost 30%

of Adults Avoiding Gluten

29%

28%

27%

26%

25%

24%

% of Adults “trying to cut back/avoid

Gluten” in diet

2010 2011 2012

Source: NPD Dieting Monitor, March 2013

Partnering with Gluten-Free media outlets is increasing awareness among a key target.

• Partnership with Gluten-Free Living™ and various Gluten-Free bloggers allows us to speak directly to Gluten-Free consumer about Sixlets®.

8Confidential

More kids are allergic to peanuts and tree nuts, which impacts entire households & classrooms.

• Impact of nut allergy goes far beyond the individual child.

• Entire households, daycare facilities and classrooms must adapt to provide a safe environment.

9Confidential

Nut Allergy Rates in

Children Have More Than

Tripled*

Source: 2010 Study - Dr. Scott H. Sicherer, Jaffe Food Allergy Institute at Mount Sinai School of Medicine*Study finds that allergy rates in children have increased 3.5x since original study in 1997

Sixlets® have always been made in a nut free facility

and are safe for nut-free kids and classrooms.

Success of our Celebration Sixlets® are generating awareness of the entire Sixlets® brand.

• Sixlets® are a huge part of the Celebration by SweetWorks® line which leverages the single color candy trend for parties, candy buffets & baking.

• National PR coverage is helping to spread the Sixlets® name: – Recent features include the Today Show, Fox News, Boston Globe, NBC, Yahoo! News,

ESPN and many, many more!

10Confidential

Product Overview

Two new pack-types are now available that fill gaps in everyday Sixlets® portfolio.

13Confidential

4oz Peg BagKing Size

Sixlets® Peg Bag offering expanded to match the needs of the marketplace.

14Confidential

KingSize Sixlets®

6oz Peg Bag

Peg Bag Category

$1.99 Peg Section

High/Low$2.39

Regular$1.99

EDLP$1.88

$1.00 Peg Section

EDLP$1.00

Pack-Type Pricing Strategy

Sixlets®4oz

Peg Bag

Sixlets® Peg Bags now available in both large and small size to cater to Peg Sections.

Sixlets® Peg Bag 4.0oz 12ct:• $.75 List Price• $1.29 SRP• 41.9% Retail Margin

15Confidential

Now in 2

Different Sizes!

Sixlets® Peg Bag 6.0oz 12ct:• $1.14 List Price• $1.99 SRP• 42.7% Retail Margin

• Perfect for lunch boxes, candy jars, portion control snacking

• Delivers on key price point for moms buying snacks

NEW!

King Size segment drives significant candy dollars at C-Store and is a big opportunity for Sixlets®.

16Confidential

7 of the Top 10 Candy Items in C-Store are King Size

King Size segment continues to grow as top items were +6.9% vs. YAG

Source: IRI - Total US – Convenience AllScan 52-Weeks ending 7/13/14

Sixlets® King Size is well positioned as most competitive chocolate has lower weight ratios.

17Confidential

1.75oz

AVG Chocolate

AVGNon-Chocolate

3.40oz 1.94

1.67oz 3.03oz 1.81

2.04oz 3.73oz 1.83

1.69oz 3.14oz 1.86

Count Goods King Size Ratio

Source: IRI - Total US – Convenience AllScan 52-Weeks ending 7/13/14

Two perfect ways to leverage Sixlets® brand growth at C-Stores and front-end.

18Confidential

NEW!

• Gluten free & Nut-Free• Perfect for front-end

or check-lane

All-New King Size is Great

Addition!

Sixlets® 1.75oz Pouches, 24ct• $0.61 List Price• $1.09 SRP• 44% Margin

Sixlets® 3.4oz Pouches, 16ct• $1.08 List Price• $1.99 SRP• 45.7% Margin

Sixlets® Change Makers at multiple price-points to meet your needs.

19

Sixlets® 20-Ball Tube, 48ct:• $0.12 List Price• $0.25 SRP• 52% Margin

Sixlets® 12-Ball Tube, 72ct:• $0.08 List Price• $0.15 SRP• 46.6% Margin

Confidential

• Gluten free• Perfect for “pick-me-up”

impulse purchases• Iconic tube format

consumers recognize

2 Awesome

High-Margin Items!

Sixlets® Theater Box & Milk Carton, perfect formats for entertainment destinations.

20Confidential

Sixlets® Theater Box 3.5oz ,15ct• $.80 List Price• $1.29 SRP• 38% Margin

• Gluten free• Great for immediate

consumption• Perfect for sharing

Classic Brand in Classic

Formats!

Sixlets® Milk Carton 11.0oz, 24ct• $1.83 List Price• $2.99 SRP• 39% Margin

Sixlets® Laydown Bags are perfect for portion controlled snacking.

Sixlets® Laydown Bag 9oz 24ct:• 0.6oz Snack Pouches• $1.75 List Price• $2.99 SRP• 41.4% Margin

21Confidential

Sixlets® Laydown Bag 4oz 12ct:• Classic 8-Ball Tubes• $0.72 List Price• $1.19 SRP• 39% Margin

Available in Tubes

or Pouches!

• Perfect for lunch boxes and candy jars

• Delivers on key price point for moms buying snacks

Everyday Sixlets® Channel Opportunities by Pack Type.

22Confidential

Section C-Store Drug Grocery Mass Dollar/Value

12-Ball Tube Front End X20-Ball Tube Front End X1.75oz Count Goods Front End X X X X X3.4oz King Size Front End X X X XTheater Box Theater Box X X X X4oz Laydown Bag Everyday X X X4oz Peg Bag Peg Set X X X6oz Peg Bag Peg Set X X X9oz Snack Pouches Everyday X X

This Business Plan is confidential. It is intended solely for the addressee. Access to this Business Plan by any other person is unauthorized. If you are not the addressee you are prohibited from copying it, distributing it or disclosing it to anyone other than the addressee.

Thank You For Your Business!


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