Confection. goes back to the

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1 CATEGORY CAPTAIN CATEGORY CAPTAIN H E R S H E Y W RI G L E Y S Confection Gum & Mints Confection goes back to the basics. T here are times when growth and profitability mean complicated marketing strategies and sweeping changes and then there are times like this one a time when we re going back to the basics to drive positive results in Confection! Through in-depth consumer research and concept testing, there are insights that have emerged recently that suggest a new merchandising strategy which can revolutionize how we market and buy confection items... Confection is the largest of the snack categories in the convenience channel and dollar sales are up in nearly all of the segments. For the past several years, merchandising flow in the Confection category has been done more by who makes the product rather than how consumers shop the category. While this has been a good approach and has kept the category organized and growing, we have seen that growth starting to slow. Through in-depth consumer research and concept testing, there are insights that have emerged recently that suggest a new merchandising strategy which can revolutionize how we market and buy confection items, and this strategy offers +4% to +6% sales dollar growth. It takes us back to the basics by prioritizing three simple tenets to generate one excellent result these three ideas presented by Mars are: Flavor Zones, Power Brands and Usage Occasions. Let s begin with Flavor Zones, which align to the shopper decision tree. In short, once shoppers select a category, such as Confection, they then immediately think of flavor and begin choosing their product. For example, if a shopper knows that he wants a chocolate item with a peanut/peanut butter flavor, then he has begun to narrow his choices. If the item he s looking for isn t available, research shows that item substitutions will consistently remain within that flavor. Next is the Power Brands, and 4 CATEGORY INSIGHTS

2 Flavor Zones Distinct Flavor Zones Aligning to Shopper Decision Tree + Power Brands Chocolate Power Brands in Lead Position + Usage Occasions Bulk Gum and Items in Lead Position Source: Total US-Convenience Current 52 Wks ending 8/15/15 1st Quarter

3 % of Shoppers Responding Strongly Agree Hershey Led Manufacturers Block vs Power Brand Led Brand Block 32% 50% Easy to Find Specific Brands 31% 47% Easy to Find Specific Flavors 29% 53% Easy to Find Specific Items 28% 53% Aisle is Quick to Shop 30% 49% Shelf Organization Made Sense Source: Mars/Kantar Retail C-Store Control Store Test, March April Results at 96% CI; Mars/ Kantar In Store Shopper Intercepts at Control & Test Store, April 2015 Packtype Sales (M) $924.9M $582.6M $440.1M $8.9M these are the products that deliver large dollars, high household penetration rates and have extensive marketing support. M&M s, Reese s and Snickers are the three power brands for chocolate and they should be blocked together and be the predominant brand presence on your shelf. Placing the chocolate power brands in the lead position has been proven to drive a +4% lift in dollar sales and it also supported the easiest and quickest shopping experience. The final part of the strategy is Usage Occasions, which refers mainly to gum and mints. The take-away here is that Gum Bulk and opening price point items should be merchandised in the lead position for best results. By executing this back to the basics strategy that focuses on how consumers shop, you can drive +4-6% sales growth in Confection! So now that we ve reviewed the merchandising strategy for this category, let s take a closer look at the individual segments. Chocolate and Non-Chocolate Both chocolate and non-chocolate items are part of the Confection category, with chocolate up marginally at 1.5% and non-chocolate showing continued, stronger growth at 3.2%. Within chocolate, Hershey, Mars, and Nestle are the predominant brands that you must offer but the real story is in pack size: King vs. Standard. For several years, there has been a shift occurring where more and more consumers were trading up to King Size. Over time, this has led some c-store operators to believe that the standard size pack type isn t important this is false! Pack type sales show that although king is the leader, standard pack types are still a strong second place, larger than gum and mints combined. In addition, within Immediate Consumption (IC) Confection, 25-30% of buyers purchase ONLY standard pack King 44.5% 3.5% Standard Gum IC Dollar Share 28.1% 21.2% Dollar Change -7.3% -3.0% Mint 6.2% 3.0% Source: Nielsen; Total U.S. C-Store; YTD 6/11/16 Placing the chocolate power brands in the lead position has been proven to drive a +4% lift in dollar sales and it also supported the easiest and quickest shopping experience. 6 CATEGORY INSIGHTS

4 Mints; all of the manufacturers are enjoying positive growth trends with Ferrero leading the charge at +10.7% growth. types so you will potentially lose those but this is caused and being offset by customers if you drop standard from growth in Ice Breakers. All of these your offering. products enjoy high brand recognition Moving on to the non-chocolate and have utilized product innovation to sub-category, Fruit Snacks are the item drive sales. to talk about due to them experiencing the highest confection growth at Innovation Success +14.7% in dollar sales, with the #1 Innovation comes in many forms. brand, Welch s, leading the charge. Earlier in this article, we outlined the exciting new merchandising and Gum and Mints planogram flow so now let s turn our Similar to recent years, the status of attention to some of the exciting new Gum and Mints is somewhat unchanged products emerging. Hershey s new gum is still down slightly at -2.8% Cookie Layer Crunch will accelerate and mints are up at +3.1%. Within confection snack growth by delivering gum, Wrigley owns 61% of the total against consumers snacking needs and gum share, but is experiencing softness usage occasions. Hershey took note in their core brands such as Doublemint, Juicy Fruit and Eclipse. However, satisfying snack that s highly portable, that consumers are looking for a tasty, their Extra brand is growing due to a and it s expected that this product will successful campaign launch. debut to high acclaim and profitable Mondelez is also in decline at a rate sales! of -33.4% due to three consecutive Another highly successful product years of Stride losses. On the other launch has been the Reese s With hand, Mentos is up 14.2% as a result Pieces Peanut Butter Cup. This product combines two of Hershey s most of increased distribution of Pure small bottles; however, they only represent popular items into one appealing, highly 3% of the gum category. portable product. On the mints side, all of the manufacturers are enjoying positive growth ing results from their dedication to The success that Hershey is see- trends with Ferrero leading the charge innovation, with new item sales being at +10.7% growth. From a brand perspective, Altoids Arctic, Tic Tac and Ice category growth in This foresight responsible for $56 million in Confection Breakers are all healthy and growing. and willingness to invest in the future The Breath Savers brand is in decline, is what will drive growth and sales for Gum Brand Performance $ % Change 5 Extra Orbit Double Mint Juicy Fruit Dentyne Stride Trident Mentos Ice Breakers -1.9% 3.9% -16.1% -2.2% -13.6% 7.9% -25.4% -4.1% 8.3% 285.1% Source: Nielsen Total C-Store 38 Wks Ending 9/24/16 Mint Brand Performance Altoids Altoids Arctic Lifesavers Ice Breakers Breath Savers Mentos Tic Tac -9.6% 1.0% 4.7% 6.5% 11.8% 4.0% 10.7% Source: Nielsen Total C-Store 52 Wks Ending 8/13/16 1st Quarter

5 Seasonal 31.9% Everyday 68.1% xaoc Easter 2016 Seasonal 4.3% Everyday 95.7% C-Store Source: Nielsen Seasonal Flagged Items and Time Periods Chocolate Non-Chocolate Gum Mints Fruit Snacks Sub-Category % Change -0.8% -1.3% -2.1% -4.4% -0.5% -1.8% 2.7% 2.8% 3.0% 0.6% Seasons as a marketing strategy and seasonal items continue to be key sales drivers, but remain under-developed in the convenience channel. manufacturers and c-store owners alike. In addition, Mondelez is also pushing the envelope with regard to innovation as they move toward the launch of their Milka Oreo Chocolate Candy Bar. Oreos have long been a highly popular cookie snack and have both brand recognition and a high household penetration rate. All of these attributes made it the 3.9% 4.0% Dollars Units Volume 11.7%.8%.0% Source: IRI, Total U.S. Convenience, 52 Weeks Ending 8/7/2016, including Seasonal perfect product for innovation! The new bar combines bits of Oreo cookies mixed in rich Oreo cream and coated in European milk chocolate. It s highly portable and based upon its launch data in other countries, it is expected to do very well. Seasonal Items Seasons as a marketing strategy and seasonal items continue to be key sales drivers, but remain under-developed in the convenience channel. For example, across all channels, seasonal is responsible for 31.9% of sales, but in convenience that number is only 4.3% - this discrepancy means that there is a HUGE opportunity for growth in convenience! Easter was one of the first seasons to get traction in this marketing strategy and it remains one of your best opportunities. In addition, longer Easter seasons have produced strong growth in the past and 2017 is projected to bring +30% category growth since it will be 20 days longer! To take advantage of this longer season, be sure to utilize the top Easter brands in early displays to optimize sales. Hershey s Reese and Cadbury franchises account for 73% of all Easter sales so they are a must have in your Easter product mix. 8 CATEGORY INSIGHTS

6 Finally, remember what we mentioned earlier Seasonal items are highly incremental and you will increase your sales by carrying both your standard items and the appropriate Seasonal item mix. Things to look for in 2017 As we look into 2017, we continue to look for new innovation whether that be items or merchandising. There is ongoing testing being done to enhance the performance of the standard bar such as multiple layouts to improve positioning on shelf. As previously mentioned, standard bars are an important pack-type in the confection category with more than one-third of shoppers only purchasing Standard Bars. Early results from testing are proving to be very positive for Standard Bars and total instant consumables. Stay tuned for updates on final results and how it may impact future recommended confection category merchandising. So as you prepare your Confection offering, consider those brands that are pushing the envelope and creating growth through innovation. In addition, remember the new merchandising plan and use Flavor Zones, Power Brands and Usage Occasions to your benefit. Through the implementation of all of these techniques, you ll take your Confection category back to the basics and forward toward profitability! Eby-Brown offers several different planograms to meet your needs and space require- ments, and as always, consult your Eby-Brown representative for assistance in creating a plan tailored to meet your needs. Sources: Total US-Convenience. Current 52 Wks ending 8/15/15; Mars/Kantar Retail C-Store Control Store Test, March April Results at 96% CI; Mars/Kantar In Store Shopper Intercepts at Control & Test Store, April 2015; Nielsen; Leading C-Store Retailer Loyalty Data, Nielsen; IRI, Total U.S. Convenience, 52 Weeks Ending 8/7/2016, including Seasonal; Source: Nielsen Total C-Store 52 Wks Ending ; Nielsen Seasonal Flagged Items and Time Periods. Merchandising Strategy/Item Placement Distinct Sdt Flavor Zones Power Brands Lead for Choc Vertical Flavor Zones for Non-Choc Vertical Brand Blocks for Choc/ Non-Choc Share/ King Over Singles Gum Leads With Bulk & Power Brands Opp And Fun Gum Follow Power Brands Horizontal Brand Blocks For Gum Horizontal Flavor Zones For Mints Vertical Brand Blocks For Mints Bulk Gum Leads Gum Power Brands Leads Peanut Butter/ Peanuts OPP Gum Plain Chocolate Gum Power Brands Fun Gum Extreme Mint Gum Wafer Caramel Non Traditional Everyday Licorice Intense Mints Mild Mints Fruity Mints Everyday Fruit Everyday Sour Novelty Source: Total US-Convenience: Current 52 Wks ending 8/15/15 1st Quarter

7 NOTES: 1. Always place Reese s first in line. A reverse flow layout is also available. 2. See your Eby-Brown representative for any regional versions, such as a Pearson s version for the Minneapolis market. 10 CATEGORY INSIGHTS

8 ft In-Line Candy Planogram Implement the Eby-Brown recommended ft In-Line Candy planogram to maximize your category dollars. Planogram item listings are on pages st Quarter

9 ft In-Line Candy Planogram ITEM # DESCRIPTION ITEM # DESCRIPTION ITEM # DESCRIPTION TOP SHELF SECOND SHELF WRIG ECLIPSE WFRST BTL WRIG ECLIPSE SPRMT BTL WRIG ORBIT WH S/C PEP WRIG ORBIT WH S/C SPR ICE BRKR IC PPRMNT BTL ICE BRKR IC SPRMNT BTL ICE BRKR IC GRAPE BTL MENTOS PRFRSH MNT GUM MENTOS PRFRSH SPRMNT WRIG SLMPK DOUBLEMINT WRIG SLMPK WINTERFRSH WRIG SLMPK SPEARMINT WRIG SLMPK BIG RED WRIG SLMPK JUICYFRUIT TRIDENT V/PAK PEPERMT TRIDENT V/PAK SPRMT TRIDENT V/PAK WTRGREN TRIDENT V/PAK MNT/SWT TRIDENT PEPMINT SNGL TRIDENT V/PAK CINNMON TRIDENT V/PAK BUBBLE TRIDENT V/PAK WTM TWS TRIDENT V/PAK TRP TWS TRID FRESH PEPPERMINT TRID FRESH SPEARMINT TRIDENT WHT PEPMNT TRIDENT WHT SPEARMT DENTYNE ICE PEPPERMNT DENTYNE ICE SPEARMINT DENTYNE ICE ARTIC CHL DENTYNE ICE GLCR GUM DENTYNE ICE ICEBRG GUM ALTOIDS PEPPERMINT ALTOIDS WINTERGREEN ALTOID ARTIC P/MNT ALTOID ARTIC W/GRN ALTOID ARTIC STRWBRY BREATHSVR PROTECT PEP BREATHSVR PROTECT SPR ICE BRKR MINT TIN ICE BRKR WNTRGRN MINT ICE BRKR SPRMT MINT WRIG ORBIT PEPPERMINT WRIG ORBIT SPEARMINT WRIG ORBIT WINTERMINT WRIG ORBIT SWEETMINT WRIG ORBIT BUBBLEMINT WRIG ORBIT STWBRY RMX WRIG PP35 DOUBLEMINT WRIG PP35 WINTERFRSH WRIG PP35 SPEARMINT THIRD SHELF WRIG PP35 BIG RED WRIG PP35 JUICYFRUIT EXTRA SLMPK PEPPERMNT EXTRA SLMPK SPRMNT EXTRA SLMPK POLAR ICE EXTRA SLMPK WNTRFRSH EXTRA SMOOTH MINT EXTRA SLMPK CINNAMON EXTRA SLMPK CLSC BBL EXTRA SLMPK FRTSENWTR WRIG ECLIPSE WINTERFRST WRIG ECLIPSE SPEARMNT WRIG ECLIPSE POLAR ICE WRIG ECLIPSE PEPMNT ICE BRKR BLST SPRMT ICE BRKR BLST PMNT TIC TAC MINT TIC TAC WTRGREEN TIC TAC ORANGE TIC TAC FRT ADVTR MENTOS NOWMNT PRMNT MENTOS PEPPERMINT MENTOS FRUIT BREATHSVR PEPPERMINT BREATHSVR WINTERGRN LIFESVR 5 FLAVOR ICE BRKR FROST PEPMNT ICE BRKR DUO STRAWBERRY ICE BRKR DUO W/MELON ICE BRKR DUO MNT GRP WRIG 5 COBALT WRIG 5 RAIN WRIG 5 ASCENT WRIG 5 MYSTERY MINT WRIG 5 RPM MINT WRIG 5 REACT MINT WRIG 5 PRISM WRIG 5 FLOOD SR STRWB STRIDE PEPRMNT SLAB STRIDE SPRMNT SLAB STRIDE ICYMINT SLAB STRIDE MELOPEACH SLAB STRIDE LEMONBRY SLAB BBL TAPE AWSOME ORIG H/BUBBA STR/WATR H/BUBBA OUTRAGUES JUICY FRT BBL GUM ORG WRIG SLMPK SB STRW JUICY FRT STRBTWTRMLN STRIDE SR PATCH WMLN STRIDE SR PTCH BRSBRY HERSH TAKE 5 KING FOURTH SHELF FIFTH SHELF HEATH KING SIZE 2Z ALMOND JOY KING 3Z MOUNDS KINGSIZE 3Z TWIZZLER STRAW KS 5Z JR KS BITES SKITTLES FRUIT KS 4Z SKITTLES KS WLD BRY SKITTLES SOUR KS SKITTLES KS BRIGHTSDE REESE CUP KING 2Z REESE WHITE KS BAR REESE PB CUP MINI KS REESE KS W/REESE PCS SNICKERS KS 2PC 3Z SNICKERS ALM KS 2PC M&M PEANUT KS 3Z M&M PLAIN KS 3Z HERSH ALMOND KS 2Z HERSH MILK KING 2Z KIT KAT KINGSIZE 2Z KIT KAT MINIS KS KIT KAT KS BIGKAT TWIX KS TWIX KS BITES MILKY WAY KS 3Z BUTTERFINGER BIG 3.7Z BUTTERFINGER KS PB CUP STARBURST KS MINI STARBURST KS ORIG REESE STICK KS REESE BIG CUP KS REESE FAST BREAK KS PAYDAY KINGSIZE 3Z SNICKERS PB SQRD KS 3.56Z SNICKERS XTREME KS M&M PNUTBTR KS M&M KS COFFEE NUT HERSH CKY N CRM KS HERSH KS CKYLYR CARM KIT KAT KS WHITE KIT KAT WHT MINIS KS CAD CARMELO KS 3Z TWIX PB KS MILKY WAY KS MIDNIGHT MILKYWAY KS SMPL CARM ZERO BAR KING SIZE 3Z MUSKETEER KS STARBURST KS GUMMY STARBURST KS GUMMY SR CATEGORY INSIGHTS

10 ft In-Line Candy - continued ITEM # DESCRIPTION ITEM # DESCRIPTION Displays and Counter Units create opportunities for impulse buys. SIXTH SHELF SEVENTH SHELF NUTRAGEOUS KING REESE CRUNCHY KS REESE PIECES KS REESE KS CRNCH BIG CUP SNICKERS KS CRISPER SNICKERS KS HAZELNUT M&M PRETZEL KS MR GOODBAR KING Z WHATCHAMACALLIT KS2.6 YORK MINIS KS NES CRUNCH KING 2Z BABY RUTH BIG BAR 3.7 MILKA KS OREO CH BAR MALLO CUP KINGSIZE SWEETART KS CHWY ROPE SWEDISH FISH KS 3.4Z SR PATCH KIDS KS 3.4Z GUMISVR KS 5 FLAVOR GUMISVR COLLISION REESE CUP REESE BIG CUP REESE CUP W/REESE PCS NUTRAGEOUS REESE FAST BREAK BAR SNICKERS SNICKERS ALM BAR M&M PEANUT M&M PLAIN HERSH MILK HERSH ALMOND KIT KAT KIT KAT WHITE TWIX MILKYWAY ZERO BAR YORK MINT TANGY TAFFY STRAW TANGY TAFFY CHERRY TWIZZLER STRAW SKITTLES FRUIT 2.17Z SKITTLES WBERRY SKITTLES SWT & SOUR BOTTOM SHELF CAD CARMELO M&M PNUTBTR ROLO HERSH TAKE 5 BAR HERSH CKY N CRM HERSH CKYLYR CARM BAR KIT KAT BIG KAT TWIX PB MILKYWAY MIDNIGHT ALMOND JOY MOUNDS DARK SR PUNCH STRAWBERRY SR PUNCH BLRASPBERRY STARBURST ORIG 2.07Z STARBURST FAVEREDS STARBURST SUMMR SPLSH STARBURST SWT & SOUR SKOR HEATH MR GOODBAR DOVE MILK SNICKERS HAZELNUT BAR NES CRUNCH MUSKETEER M&M MINI MEGA TUBES BUTTERFINGER BUTTERFINGER PB CUP MILKA OREO CHOC BAR ROCHER 3PC SHELF UNIT GOETZE COW TALES VAN MILKYWAY SMPLY CARM MAMBA FRUIT CHEWS AIRHEAD 6 PAK AIRHEAD BITES FRUIT AIRHEAD BITES BERRY AIRHEAD XTREME BELTS SWEETART CHEWY SWEETART CHW/SR ROLL SWEETART ROLL SWEETART CHWY ROPE EIGHTH SHELF REESE PIECES REESE CUP WHITE REESE STICKS PAYDAY WHATCHAMACALLIT SNICKERS PB SQRD SNICKERS CRISPER 1st Quarter

11 Implement the Eby-Brown recommended 9ft In-Line Candy planogram to maximize your category dollars. 9ft In-Line Candy Planogram ITEM # DESCRIPTION ITEM # DESCRIPTION TOP SHELF WRIG ECLIPSE SPRMT BTL ICE BRKR IC PPRMNT BTL MENTOS PRFRSH SPRMNT MENTOS PRFRSH MNT GUM WRIG SLMPK DOUBLEMINT WRIG SLMPK WINTERFRSH WRIG SLMPK SPEARMINT WRIG SLMPK BIG RED WRIG SLMPK JUICYFRUIT TRIDENT V/PAK PEPERMT TRIDENT V/PAK SPRMT TRIDENT V/PAK WTRGREN TRIDENT V/PAK MNT/SWT TRIDENT PEPMINT SNGL TRIDENT V/PAK CINNMON TRIDENT V/PAK BUBBLE TRIDENT V/PAK WTM TWS TRIDENT V/PAK TRP TWS TRIDENT WHT PEPMNT TRIDENT WHT SPEARMT DENTYNE ICE PEPPERMNT DENTYNE ICE SPEARMINT DENTYNE ICE ARTIC CHL ALTOIDS PEPPERMINT ALTOIDS WINTERGREEN ALTOID ARTIC P/MNT ALTOID ARTIC STRWBRY BREATHSVR PROTECT PEP BREATHSVR PROTECT SPR ICE BRKR MINT TIN ICE BRKR WNTRGRN MINT SECOND SHELF WRIG ORBIT PEPPERMINT WRIG ORBIT SPEARMINT WRIG ORBIT WINTERMINT WRIG ORBIT SWEETMINT WRIG ORBIT BUBBLEMINT WRIG ORBIT STWBRY RMX WRIG PP35 DOUBLEMINT WRIG PP35 WINTERFRSH WRIG PP35 SPEARMINT EXTRA SLMPK PEPPERMNT EXTRA SLMPK SPRMNT EXTRA SLMPK POLAR ICE EXTRA SLMPK WNTRFRSH EXTRA SMOOTH MINT EXTRA SLMPK CLSC BBL EXTRA SLMPK FRTSENWTR WRIG ECLIPSE WINTERFRST WRIG ECLIPSE SPEARMNT ICE BRKR BLST SPRMT TIC TAC MINT TIC TAC ORANGE TIC TAC FRT ADVTR MENTOS PEPPERMINT MENTOS FRUIT BREATHSVR PEPPERMINT 9563 BREATHSVR WINTERGRN LIFESVR 5 FLAVOR ICE BRKR DUO STRAWBERRY ICE BRKR DUO W/MELON THIRD SHELF WRIG 5 COBALT WRIG 5 RAIN WRIG 5 ASCENT WRIG 5 MYSTERY MINT WRIG 5 RPM MINT WRIG 5 REACT MINT WRIG 5 PRISM STRIDE PEPRMNT SLAB STRIDE SPRMNT SLAB STRIDE ICYMINT SLAB 96 BBL TAPE AWSOME ORIG H/BUBBA STR/WATR 9510 JUICY FRT BBL GUM ORG JUICY FRT STRBTWTRMLN WRIG SLMPK SB STRW STRIDE SR PATCH WMLN HERSH TAKE 5 KING CAD CARMELO KS 3Z ALMOND JOY KING 3Z TWIZZLER STRAW KS 5Z SKITTLES FRUIT KS 4Z SKITTLES KS WLD BRY SKITTLES KS BRIGHTSDE FOURTH SHELF REESE CUP KING 2Z REESE WHITE KS BAR REESE PB CUP MINI KS SNICKERS KS 2PC 3Z SNICKERS PB SQRD KS 3.56Z M&M PEANUT KS 3Z M&M PLAIN KS 3Z HERSH ALMOND KS 2Z HERSH MILK KING 2Z KIT KAT KINGSIZE 2Z KIT KAT KS WHITE KIT KAT KS BIGKAT TWIX KS MILKY WAY KS 3Z STARBURST KS GUMMY SR FIFTH SHELF REESE STICK KS REESE BIG CUP KS REESE KS W/REESE PCS PAYDAY KINGSIZE 3Z SNICKERS ALM KS 2PC SNICKERS KS CRISPER M&M PNUTBTR KS M&M KS COFFEE NUT HERSH CKY N CRM KS HERSH KS CKYLYR CARM KIT KAT MINIS KS KIT KAT WHT MINIS KS TWIX PB KS ITEM # DESCRIPTION TWIX KS BITES STARBURST KS MINI SIXTH SHELF NUTRAGEOUS KING REESE FAST BREAK KS REESE KS CRNCH BIG CUP REESE CRUNCHY KS SNICKERS XTREME KS SNICKERS KS HAZELNUT WHATCHAMACALLIT KS HEATH KING SIZE YORK MINIS KS 2Z BUTTERFINGER BIG 3.7Z BUTTERFINGER KS PB CUP MUSKETEER KS SR PATCH KIDS KS 3.4Z GUMISVR KS 5 FLAVOR STARBURST KS ORIG SEVENTH SHELF REESE CUP 14 CATEGORY INSIGHTS

12 IN-LINE CONFECTION ITEM # DESCRIPTION REESE BIG CUP REESE CUP W/REESE PCS NUTRAGEOUS SNICKERS M&M PEANUT HERSH MILK HERSH ALMOND KIT KAT KIT KAT WHITE TWIX 8867 MILKYWAY HERSH TAKE 5 BAR ZERO BAR ALMOND JOY SKITTLES FRUIT 2.17Z SKITTLES WBERRY EIGHTH SHELF REESE FAST BREAK BAR REESE STICKS REESE PIECES ITEM # DESCRIPTION REESE CUP WHITE PAYDAY SNICKERS ALM BAR SNICKERS HAZELNUT BAR M&M PLAIN HERSH CKY N CRM HERSH CKYLYR CARM BAR WHATCHAMACALLIT KIT KAT BIG KAT TWIX PB MILKYWAY MIDNIGHT CAD CARMELO ROLO MOUNDS DARK STARBURST ORIG 2.07Z STARBURST FAVEREDS BOTTOM SHELF MR GOODBAR DOVE MILK SKOR ITEM # DESCRIPTION HEATH YORK MINT NES CRUNCH M&M PNUTBTR MUSKETEER BUTTERFINGER MAMBA FRUIT CHEWS AIRHEAD BITES FRUIT AIRHEAD XTREME BELTS TANGY TAFFY CHERRY SWEETART ROLL SWEETART CHWY ROPE SWEETART CHEWY STARBURST SUMMR SPLSH 1st Quarter

13 Implement the Eby-Brown recommended 8ft In-Line Candy planogram to maximize your category dollars. 8ft In-Line Candy Planogram ITEM # DESCRIPTION ITEM # DESCRIPTION TOP SHELF SECOND SHELF WRIG ECLIPSE SPRMT BTL ICE BRKR IC PPRMNT BTL MENTOS PRFRSH MNT GUM WRIG SLMPK DOUBLEMINT WRIG SLMPK WINTERFRSH WRIG SLMPK SPEARMINT WRIG SLMPK BIG RED WRIG SLMPK JUICYFRUIT TRIDENT V/PAK PEPERMT TRIDENT V/PAK SPRMT TRIDENT V/PAK WTRGREN TRIDENT PEPMINT SNGL TRIDENT V/PAK CINNMON TRIDENT V/PAK BUBBLE TRIDENT V/PAK WTM TWS TRIDENT V/PAK TRP TWS TRIDENT WHT PEPMNT TRIDENT WHT SPEARMT DENTYNE ICE PEPPERMNT DENTYNE ICE SPEARMINT DENTYNE ICE ARTIC CHL ALTOIDS PEPPERMINT ALTOIDS WINTERGREEN ALTOID ARTIC P/MNT ALTOID ARTIC STRWBRY ICE BRKR MINT TIN ICE BRKR WNTRGRN MINT WRIG ORBIT PEPPERMINT WRIG ORBIT SPEARMINT WRIG ORBIT WINTERMINT WRIG ORBIT SWEETMINT WRIG ORBIT BUBBLEMINT WRIG ORBIT STWBRY RMX WRIG PP35 DOUBLEMINT EXTRA SLMPK PEPPERMNT EXTRA SLMPK SPRMNT EXTRA SLMPK POLAR ICE EXTRA SLMPK WNTRFRSH EXTRA SLMPK FRTSENWTR WRIG ECLIPSE WINTERFRST WRIG ECLIPSE SPEARMNT ICE BRKR BLST SPRMT TIC TAC MINT TIC TAC ORANGE TIC TAC FRT ADVTR MENTOS PEPPERMINT MENTOS FRUIT BREATHSVR PROTECT SPR BREATHSVR PEPPERMINT BREATHSVR WINTERGRN LIFESVR 5 FLAVOR ICE BRKR DUO STRAWBERRY ICE BRKR DUO W/MELON THIRD SHELF FOURTH SHELF FIFTH SHELF SIXTH SHELF WRIG 5 COBALT WRIG 5 RAIN WRIG 5 ASCENT WRIG 5 MYSTERY MINT WRIG 5 RPM MINT WRIG 5 REACT MINT WRIG 5 PRISM STRIDE PEPRMNT SLAB STRIDE SPRMNT SLAB STRIDE ICYMINT SLAB BBL TAPE AWSOME ORIG H/BUBBA STR/WATR JUICY FRT STRBTWTRMLN WRIG SLMPK SB STRW STRIDE SR PATCH WMLN ALMOND JOY KING 3Z WHATCHAMACALLIT KS2.6 CAD CARMELO KS 3Z HERSH TAKE 5 KING SKITTLES FRUIT KS 4Z SKITTLES KS WLD BRY REESE CUP KING 2Z REESE WHITE KS BAR REESE FAST BREAK KS SNICKERS KS 2PC 3Z SNICKERS PB SQRD KS 3.56Z M&M PEANUT KS 3Z M&M PLAIN KS 3Z HERSH ALMOND KS 2Z HERSH MILK KING 2Z KIT KAT KINGSIZE 2Z KIT KAT KS WHITE TWIX KS SKITTLES KS BRIGHTSDE REESE STICK KS REESE PB CUP MINI KS REESE KS W/REESE PCS PAYDAY KINGSIZE 3Z SNICKERS ALM KS 2PC SNICKERS KS CRISPER M&M PNUTBTR KS HERSH KS CKYLYR CARM HERSH CKY N CRM KS KIT KAT KS BIGKAT KIT KAT MINIS KS KIT KAT WHT MINIS KS TWIX PB KS STARBURST KS MINI NUTRAGEOUS KING REESE BIG CUP KS ITEM # SEVENTH SHELF DESCRIPTION REESE KS CRNCH BIG CUP REESE CRUNCHY KS SNICKERS XTREME KS SNICKERS KS HAZELNUT M&M KS COFFEE NUT MILKY WAY KS 3Z MUSKETEER KS BUTTERFINGER BIG 3.7Z BUTTERFINGER KS PB CUP TWIZZLER STRAW KS 5Z STARBURST KS GUMMY SR REESE CUP REESE FAST BREAK BAR REESE CUP W/REESE PCS 16 CATEGORY INSIGHTS

14 ITEM # DESCRIPTION ITEM # DESCRIPTION ITEM # DESCRIPTION EIGHTH SHELF SNICKERS M&M PEANUT HERSH MILK HERSH ALMOND KIT KAT KIT KAT BIG KAT TWIX TWIX PB MOUNDS DARK SKITTLES FRUIT 2.17Z SKITTLES WBERRY REESE PIECES REESE STICKS REESE CUP WHITE PAYDAY SNICKERS HAZELNUT BAR M&M PLAIN WHATCHAMACALLIT HERSH CKY N CRM HERSH CKYLYR CARM BAR KIT KAT WHITE MILKYWAY CAD CARMELO HERSH TAKE 5 BAR ALMOND JOY STARBURST ORIG 2.07Z STARBURST FAVEREDS BOTTOM SHELF MR GOODBAR ROLO HEATH SKOR SNICKERS ALM BAR M&M PNUTBTR YORK MINT DOVE MILK MUSKETEER BUTTERFINGER MILKYWAY MIDNIGHT AIRHEAD BITES FRUIT TANGY TAFFY CHERRY SWEETART ROLL SWEETART CHWY ROPE STARBURST SUMMR SPLSH 1st Quarter

15 This 6ft In-Line Candy planogram is recommended for smaller stores lacking space for an 8ft or larger section. 6ft In-Line Candy Planogram ITEM # DESCRIPTION ITEM # DESCRIPTION ITEM # DESCRIPTION TOP SHELF SECOND SHELF MENTOS PRFRSH MNT GUM WRIG SLMPK DOUBLEMINT WRIG SLMPK WINTERFRSH WRIG SLMPK SPEARMINT WRIG SLMPK BIG RED WRIG SLMPK JUICYFRUIT TRIDENT V/PAK PEPERMT TRIDENT V/PAK SPRMT TRIDENT V/PAK BUBBLE TRIDENT V/PAK WTM TWS TRIDENT V/PAK TRP TWS TRIDENT WHT PEPMNT DENTYNE ICE PEPPERMNT DENTYNE ICE SPEARMINT DENTYNE ICE ARTIC CHL ALTOIDS PEPPERMINT ALTOIDS WINTERGREEN ALTOID ARTIC P/MNT ICE BRKR MINT TIN ICE BRKR WNTRGRN MINT WRIG ORBIT PEPPERMINT WRIG ORBIT SPEARMINT WRIG ORBIT WINTERMINT WRIG ORBIT SWEETMINT WRIG ORBIT STWBRY RMX WRIG PP35 DOUBLEMINT EXTRA SLMPK PEPPERMNT EXTRA SLMPK SPRMNT EXTRA SLMPK POLAR ICE EXTRA SLMPK FRTSENWTR WRIG ECLIPSE WINTERFRST WRIG ECLIPSE SPEARMNT TIC TAC MINT TIC TAC ORANGE BREATHSVR PROTECT SPR BREATHSVR PEPPERMINT BREATHSVR WINTERGRN MENTOS PEPPERMINT MENTOS FRUIT ICE BRKR DUO STRAWBERRY THIRD SHELF WRIG 5 COBALT FOURTH SHELF FIFTH SHELF SIXTH SHELF WRIG 5 RAIN WRIG 5 ASCENT WRIG 5 PRISM STRIDE PEPRMNT SLAB STRIDE SPRMNT SLAB STRIDE ICYMINT SLAB BBL TAPE AWSOME ORIG H/BUBBA STR/WATR WRIG SLMPK SB STRW WHATCHAMACALLIT KS2.6 HERSH TAKE 5 KING CAD CARMELO KS 3Z TWIZZLER STRAW KS 5Z SKITTLES FRUIT KS 4Z REESE CUP KING 2Z REESE WHITE KS BAR SNICKERS KS 2PC 3Z SNICKERS PB SQRD KS 3.56Z M&M PEANUT KS 3Z M&M PLAIN KS 3Z HERSH ALMOND KS 2Z HERSH MILK KING 2Z KIT KAT KINGSIZE 2Z KIT KAT KS WHITE REESE PB CUP MINI KS REESE KS W/REESE PCS REESE BIG CUP KS PAYDAY KINGSIZE 3Z SNICKERS KS CRISPER SNICKERS XTREME KS M&M PNUTBTR KS HERSH CKY N CRM KS KIT KAT KS BIGKAT KIT KAT MINIS KS KIT KAT WHT MINIS KS REESE STICK KS REESE KS CRNCH BIG CUP REESE FAST BREAK KS NUTRAGEOUS KING SNICKERS KS HAZELNUT SEVENTH SHELF EIGHTH SHELF BOTTOM SHELF M&M KS COFFEE NUT HERSH KS CKYLYR CARM TWIX KS MILKY WAY KS 3Z MUSKETEER KS REESE CUP REESE CUP W/REESE PCS SNICKERS M&M PEANUT HERSH MILK HERSH ALMOND KIT KAT KIT KAT WHITE TWIX SKITTLES FRUIT 2.17Z REESE FAST BREAK BAR REESE CUP WHITE PAYDAY SNICKERS ALM BAR M&M PLAIN CAD CARMELO HERSH CKY N CRM MILKYWAY KIT KAT BIG KAT ALMOND JOY MOUNDS DARK STARBURST ORIG 2.07Z WHATCHAMACALLIT YORK MINT HEATH SNICKERS HAZELNUT BAR M&M PNUTBTR MUSKETEER BUTTERFINGER MILKYWAY MIDNIGHT AIRHEAD BITES FRUIT TANGY TAFFY CHERRY SWEETART ROLL SWEETART CHWY ROPE 18 CATEGORY INSIGHTS

16 IN-LINE CONFECTION 6ft In-Line Candy Planogram 1st Quarter

17 This 4ft In-Line Candy planogram is recommended for smaller stores lacking space for an 8ft or larger section. 4ft In-Line Candy Planogram ITEM # DESCRIPTION ITEM # DESCRIPTION ITEM # DESCRIPTION TOP SHELF SECOND SHELF WRIG SLMPK DOUBLEMINT WRIG SLMPK JUICYFRUIT TRIDENT V/PAK PEPERMT TRIDENT V/PAK SPRMT TRIDENT V/PAK TRP TWS TRIDENT V/PAK WTM TWS TRIDENT WHT PEPMNT DENTYNE ICE PEPPERMNT DENTYNE ICE ARTIC CHL ALTOIDS PEPPERMINT ICE BRKR MINT TIN ICE BRKR WNTRGRN MINT MENTOS FRUIT WRIG ORBIT PEPPERMINT WRIG ORBIT SPEARMINT WRIG ORBIT WINTERMINT WRIG ORBIT SWEETMINT WRIG PP35 DOUBLEMINT EXTRA SLMPK PEPPERMNT EXTRA SLMPK SPRMNT EXTRA SLMPK POLAR ICE WRIG ECLIPSE SPEARMNT TIC TAC MINT TIC TAC ORANGE BREATHSVR WINTERGRN MENTOS PEPPERMINT THIRD SHELF WRIG 5 COBALT FOURTH SHELF FIFTH SHELF SIXTH SHELF WRIG 5 RAIN WRIG 5 ASCENT STRIDE ICYMINT SLAB STRIDE SPRMNT SLAB BBL TAPE AWSOME ORIG H/BUBBA STR/WATR CAD CARMELO KS 3Z HERSH TAKE 5 KING SKITTLES FRUIT KS 4Z REESE CUP KING 2Z REESE WHITE KS BAR SNICKERS KS 2PC 3Z M&M PEANUT KS 3Z HERSH ALMOND KS 2Z KIT KAT KINGSIZE 2Z REESE STICK KS REESE BIG CUP KS REESE KS W/REESE PCS M&M PLAIN KS 3Z M&M PNUTBTR KS HERSH MILK KING 2Z KIT KAT KS BIGKAT REESE FAST BREAK KS PAYDAY KINGSIZE 3Z TWIX KS MILKY WAY KS 3Z SEVENTH SHELF EIGHTH SHELF BOTTOM SHELF HERSH CKY N CRM KS MUSKETEER KS REESE CUP SNICKERS M&M PEANUT HERSH MILK KIT KAT SKITTLES FRUIT 2.17Z REESE FAST BREAK BAR PAYDAY M&M PLAIN HERSH ALMOND HERSH CKY N CRM MILKYWAY YORK MINT STARBURST ORIG 2.07Z REESE CUP WHITE KIT KAT WHITE CAD CARMELO WHATCHAMACALLIT TWIX MUSKETEER BUTTERFINGER AIRHEAD BITES FRUIT 20 CATEGORY INSIGHTS

18 4ft In-Line Candy Planogram 1st Quarter

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20 Mondelez PROMOTION OBJECTIVE Grow retailer sales and profits and increase distribution on core selling Trident and Stride gum brands and gain placement on new Purely Trident items. Introduce the NEW Milka Oreo Chocolate brand to the Eby Brown retailer community. BENEFITS Trident and Stride are destination brands that consumers seek out. Make sure you are carrying core items on these brands and grow your gum sales. Add this exciting new chocolate brand to your retail set. Milka is the top selling chocolate brand in Europe. Oreo is the best selling cookie brand in the world. Mondelez is puttting these two power brands together to deliver products that will help retailers grow chocolate category sales. ITEM # UPC DESCRIPTION PK SZ OI Allowance SRP Trident Spearmint Trident Tropical Twist Trident Original Trident Watermelon Twist Purely Trident Peppermint Purely Trident Spearmint Stride Spearmint Stride Peppermint Stride Icymint Milka Oreo Chocolate Standard Bar Milka Oreo Chocolate King Size Bar pc 18 pc 18 pc 18 pc 14 pc 14 pc 14 pc 14 pc 14 pc 1.44 oz 2.9 oz $0.70 $0.70 $0.70 $0.70 $0.80 $0.80 $0.70 $0.70 $0.70 $1.25 $2.00 $1.39 $1.39 $1.39 $1.39 $1.49 $1.49 $1.49 $1.49 $1.49 $1.29 $1.89 REQUIREMENTS Distribution only DATES - OPEN BUY WINDOW Order dates: /19/16-1/13/17 Dates for in-store promotion: /19/16-1/13/17 1st Quarter

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22 Ferrero USA PROMOTION OBJECTIVE Take advantage of growth to drive sales in the Mint category. BENEFITS Top performing Tic Tac SKUs and Rocher 3pc which is the best performing premium chocolate SKU. ITEM # UPC DESCRIPTION PK SZ OI Allowance SRP Tic Tac Freshmint Tic Tac Orange Tic Tac Fruit Adventure Tic Tac Wintergreen Rocher 3pc Nutella & Go Breadstick Nutella & Go Pretzel 1 oz 1 oz 1 oz 1 oz 3 ct 1.8 oz 1.9 oz $0.45 $0.45 $0.45 $0.45 $0.85 $0.60 $0.60 $1.29 $1.29 $1.29 $1.29 $1.49 $1.59 $1.59 REQUIREMENTS Distribution only DATES - OPEN BUY WINDOW Order dates: /19/16-1/13/17 Dates for in-store promotion: /19/16-1/13/17 1st Quarter

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24 Mars PROMOTION OBJECTIVE To capitalize on the spike in sales newer items lend to the category. BENEFITS Increased sales and profits in the singles and king size segments. ITEM # UPC DESCRIPTION PK SZ OI Allowance SRP Mars 5 Box Deal contains: Snickers Hazelnut King Size Snickers Hazelnut Singles Snickers Crisper King Size Snickers Crisper Singles Milky Way Midnight King Size oz 1.76 oz 2.83 oz 1.41 oz 2.83 oz $13.00 $1.89 $1.29 $1.89 $1.29 $1.89 REQUIREMENTS Purchase 1 box of each to receive allowance Distribution only DATES - BOOKING ITEMS Order dates: /19/16-1/13/17 Return order to Eby-Brown by: 1/13/17 Ship date: 2/27/17 Date for in-store promotion: 2/27/17 1st Quarter

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26 Perfetti Van Melle PROMOTION OBJECTIVE Increase distribution on top selling items within the Confection category. BENEFITS Increase retail sales and profits by offering top selling items within the category. ITEM # UPC DESCRIPTION PK SZ OI Allowance SRP AH Checkstand Pack AH Big Bar Strawberry Watermelon AH Bites Fruit Xtreme Bites Rainbow Peg Bag Xtreme Belts Rainbow Berry Xtreme Blue Raspberry Belts Mentos Pure Fresh Gum Mentos Pure Fresh Spearmint Gum Mentos Peppermint Roll Mentos Fruit Roll oz 1.5 oz 2 oz 6 oz 2 oz 2 oz 1.06 oz 1.06 oz 1.32 oz 1.32 oz $0.30 $0.35 $0.35 $0.06 $0.25 $0.25 $0.25 $0.25 $0.25 $0.25 $1.19 $1.29 $1.29 $2.79 $1.29 $1.29 $1.49 $1.49 $1.29 $1.29 REQUIREMENTS Distribution only DATES - OPEN BUY WINDOW Order dates: /19/16-1/13/17 Dates for in-store promotion: /19/16-1/13/17 1st Quarter