january – june 2006 august, 2006

January – June 2006 August, 2006

Confectionery IndustryReview

USA Market

2006 First Six MonthsRetail Performance

2006 Retail Confectionery Sales

52 week sales estimates July 2005 – June 2006 % $ Change

Confectionery $28.6 +3.2%(Chocolate, Sugar, Gum) Sales in billionsEstimates are based upon interpretation of IRI retail sales data, NCA Shipment Data, and Euromonitor

2006 Retail Channel Performance

Channel 2006 $ Sales 2006 % GrowthSupermarkets $4.3 -0.6%*Wal-Mart $3.2 +3.8% Mass X Wal-Mart $1.3 +2.1%Convenience Stores $4.1 +7.2%Drug Stores $2.4 +4.1%*Warehouse Clubs $3.1 Even*Dollar Stores $.8 +0.2%Vending $1.1 -0.4%*Bulk $1.4 Even

Based on 52 Week Sales – July 2005 – June 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

2006 Retail Category SalesCategory $ Sales Growth Category Size (000 millions)

Misc. Snacks +30.0% $197Coffee +7.8% $3,001Snack/Granola Bars +4.7% $1,873Candy & Gum +1.2% $7,921Salty Snacks +0.6% $7,320Bakery Snacks -0.4% $839Carb. Beverages -0.9% $13,409Ice Cream -1.2% $4,376Cereal -1.5% $6,082Cookies -2.1% $3,901Milk -3.5% $10,895Dry Fruit Snacks -6.6% $511

Information Resources 52 week sales through July 16, 2006

Supermarkets,

Drug and Mass Only

Candy and Gum Rank 3rdAmong Food Categories

$13.40

$7.40

$6.10

$4.40

$3.90

$7.80

$10.90

$0.0 $3.0 $6.0 $9.0 $12.0 $15.0

Carbonated Beverages

Milk

Candy& Gum

Salty Snacks

Cereal

Ice Cream

Cookies

Prod

uct C

ateg

orie

s

$ Billions

-0.9%

-3.5%

+1.2%+0.6%

-1.5%

-1.2%

-2.1% IRI Food, Drug & MassExcluding Wal-Mart 7/16/06

2006Seasonal Performance

Confectionery Seasonal Sales(** in millions of dollars)

$ Sales2006 Valentine’s Day $9712006 Easter $1,8842005 Halloween $2,0882005 Christmas $1,375

Results and Projection as of June 2006Source: 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

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%

USA Market

2006 First Six MonthsManufacturer Performance

2006 Confectionery Performance

Category Manf. Sales % Chocolate $2.5 billion -0.2%Non-Choc. $1.4 billion +6.8%

NCA Monthly Shipment Reports January – May 2006

Manufacturers’ ShipmentsJanuary – May 2006

USA Market

New Trends

Trends - What's for 2006/07

Limited Editions

Dark Chocolate

High End and Gourmet Candy

High Cocoa Content Chocolates

Single Origin Chocolates

Gourmet Chocolates are hot! It all depends on your definition of gourmet.

Combined, Dove, Ferrero, Ghirardelli, Hershey Dark, Lindt, Mon Cheri and Perugina grew 32.2% in 2005

Trends - What's for 2006/07

Sugar Free Gums

Licorice

Single Serve Seasonal Offerings

Breath Fresheners

USA Market

2005 AnnualConfectionery Performance

2005 Confectionery Performance

Category Retail Sales Manf. Sales % Total $28.1 Billion $18.3 billion +2.6%Chocolate $15.8 Billion $10.3 billion +3.2%Non-Choc. $8.9 Billion $5.8 billion +7.0%Gum $2.6 Billion $1.7 billion -12.4%

NCA Estimates base on 2006 U.S. Dpt. Of Commerce 311D Report and NCA Monthly Shipment ReportsDifferences based on estimation and “Not specified by kind” category.

2005 Confectionery & Snack Sales

The 2005 U.S. Retail Market % $ Change

Confectionery $28.1 +2.6%(Chocolate, Sugar, Gum) Savory Snacks $27.5 +4.4%Biscuits & Crackers $11.1 +1.3% Sales in billionsNCA Shipment Data and Euromonitor

Retail Landscape ChangingChannel 2005 $ Sales 2005 % GrowthSupermarkets $4.3 -1.1%*Wal-Mart $2.8 +3.8% Mass X Wal-Mart $1.2 +0.7Convenience Stores $3.8 +8.8%Drug Stores $2.3 +1.0%*Warehouse Clubs $3.2 +3.6%*Dollar Stores $.8 EvenVending $1.2 -1.9%*Bulk $1.5 -0.5*estimates