State of the Confectionery Industry

1
State of the Confectionery Industry
2
State of the Confectionery Industry

• Second half growth carries category

Retail Sales IRI 52 Weeks June 16 1.1
December 28 2.2
Manufacturers YTD Shipments June 30 -3.1
Lbs. 1.4
December 31 -0.5 Lbs 3.2
3
2003 Retail Confectionery Sales

• Total 24.8 Billion
• Chocolate 13.5 Billion
• Non-Chocolate 7.6 Billion
• Gum 3.0 Billion
• NCA Estimates base on U.S. Dpt. Of Commerce 311D
  Report

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Candy Gum Retail Performance
2003 2002 2001 2000 Total Candy
Gum 2.2 1.5 2.9 3.3 Supermarkets 3.0 1.7
1.5 2.4 Mass Wal-Mart 0.9 -0.8 6.7 6
.3 Drug Stores 4.4 5.3 0.8 0.3 Convenienc
e 5.5 3.5 6.1 7.3 IRI Sales as of
12/28/03
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Candy Gum Retail Performance
2003 Sales Results Category 52 Week 52 Week
Sales Change Chocolate 5.5
billion 1.7 Non Chocolate 3.3
billion 1.8 Gum 1.2 billion 5.5 Total
Candy and Gum 10.0 billion 2.2 IRI Sales
as of 12/28/03 FDMW
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Trade Class 2003 Growth

• Channel Sales Growth
• Supermarkets 4.3 3.0
• Convenience Stores 3.9 5.5
• Drug Stores 2.1 4.4
• Wal-Mart 2.4 3.5
• Mass X Wal-Mart 1.2 -4.4
• Warehouse Clubs 4.0 4.0
• Dollar Stores .7 7.0

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Seasonal Confectionery Trends
2003 2002 2001 2000 1999
1998 VALENTINES -7.6 6.5 -0.5 4.7
-2.1 7.9 EASTER
2.2 -2.2 -2.4 11.0 -0.1
10.5 HALLOWEEN 0.7 -0.4 0.2 4.7
6.1 4.6 CHRISTMAS
-1.4 -3.0 0.7 1.7 -0.8 -2.9
IRI FDM
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Candy Gum Retail Performance
2003 Sales Results 12/28/03 Confectionery 2.2
Chocolate 1.7 Everyday
Sales 4.3 Seasonal Sales -2.7 Non-Chocolat
e 5.1 Everyday Sales 5.1 Seasonal
Sales -3.2 Breath Fresheners -10.6 Gum
5.5 IRI Sales as of 12/28/03 FDMW
9
Non-Chocolate
Breath Fresheners 2003 -10.6 2002 -6.8 2001 -8.6
91 million 3 of Non-Choc
Non-Choc Per Capita
Year

• 9.4
• 10.2
• 10.2
• 10.8
• 11.3
• 12.0
• 12.3
• 12.2
• 11.4
• 11.2
• 10.0
• 9.9

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000
2001 2002
Hard Candy 50 million
Soft/Chewy Candy 180 million
Chocolate -even
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Candy and Gum Ranked 3rdAmong 2003 Food
Categories
IRI Food, Drug Mass Excluding Wal-Mart 12/28/03
8.5
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Candy and Gum Ranked 1st Among 2003 Snack
Categories
IRI Food, Drug Mass Excluding Wal-Mart 12/28/03
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Candy Gum 2003 Manufacturer Performance
Domestic Production and Imports December 31,
2003 Lbs. Change
Billions Billions Lbs. Total
Confectionery 16.2 7.1
5.2 3.0 Chocolate Candy 9.3
3.4 6.4 1.2 Non-Chocolate Candy
5.0 3.0 4.0 5.3 Gum
1.9 0.5 3.6 3.2 U.S.
Department of Commerce Data
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Candy Gum 2003 Manufacturer Performance
Domestic Production Only December 31, 2003
Lbs. Change Billions
Billions Lbs. Total
Confectionery 15.5 6.2
3.2 -0.5 Chocolate Candy 8.9
3.3 4.8 -0.2 Non-Chocolate Candy
4.3 2.3 1.4 -0.3 Gum
1.7 0.4 1.3 0.8 U.S.
Department of Commerce Data
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Non-Chocolate Import Growth
Non-Choc. Non-Choc. Non-Choc. Non-Choc
Non-Choc Retail NCA/CMA Import
Imports Imports Year Growth
Shipments Growth of Total of US
Production 2003 1.8 -0.3 21.3 30.1 40.1
2002 0.3 -5.5 15.2 26.7 33.4 2001 0.
9 -1.2 10.4 21.0 24.4 2000 3.2 -4.3
9.9 19.2 21.8 1999 5.8 -3.3 19.3 17
.1 19.6 1998 6.3 -1.1 17.7 13.9 14.9
1997 6.7 8.8 7.6 11.7 12.4 1996 7.6
5.8 8.5 10.7 11.4

• 2003 Estimates
• 2002 U.S. Department of Commerce

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Confectionery Imports Exports

• Category Imports Exports
• 2003 Growth 2003
  Growth
• Confectionery 1,970 23.8 725
  10.3
• Chocolate 633 28.7 357
  2.5
• Non-Chocolate 844 21.35 215
  14.6
• Gum 159 24.9 63 26.3

Global Trade Atlas November 2003
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Confectionery Imports

• Trading Partner 2003 Shipments Growth
• World 1,970 23.8
• Canada 1,002 38.7
• Mexico 250 27.2
• UK 111 - 13.7
• Germany 67 - 3.4
• Brazil 62 68.5
• Belgium 61 19.2
• China 47 15.3
• Netherlands 42 18.0
• Argentina 40 - 9.8
• Switzerland 36 9.8

Sales in millions
January November 2003
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Confectionery Exports

• Trading Partner 2003 Shipments Growth
• World 725 10.3
• Canada 348 13.9
• Mexico 102 20.6
• Japan 29 2.6
• South Korea 27 - 4.8
• UK 20 58.2
• Germany 14 29.3
• Philippines 12 - 37.0
• Taiwan 11 28.7
• France 11 410.6
• China 11 9.9

Sales in millions
January November 2003