CONFECTION RETAILER REWARDS PROGRAM

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Joella Merritt
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1 range, typically a bird s-eye or / view. There are two styles of Distribution Options (select up to three % Rebate on Each) Chocolate Innovation Take all Innovation Chocolate items shown below during the month of launch and in the second half as + Net New Hershey SKUs. range, typically a bird s-eye or / view. There are two styles of Refreshment Innovation Take both BREATH SAVERS Protect items shown below during the month of launch and in second half as + Net New Hershey Mint SKUs. Grow ICE BREAKERS ICE CUBES Bottle Pack Gum + Net New with items shown below. Page : Section Name Page : Section Name Take Home Distribution Grow Take Home items + Net New or minimum Hershey Take Home SKUs Page : Section Name (DCT/BM) CONFECTION RETAILER REWARDS PROGRAM CONVENIENCE range, typically a bird s-eye or / view. There are two styles of

The C-Store trip is largely planned and fast Candy is an ideal item to offer THE CONVENIENCE TRIP The average transaction is small, under items % % Nearly / of Trips are planned

% % % % $- $- $- $- $+ More than Half of Trips are minutes or less The top trips involve food for immediate consumption % of Trips Grab & Go To get food for snacking To satisfy

treat myself To quench my thirst Tobacco, Beverages,, Gas Video Mining Excludes gasoline only trips; Top Benefits by Trip Mission Hershey s General Shopping Missions Survey ();

impulsive ( Purchase can be influenced in store) % Category Impulse Purchases % % % % % Candy Cookies Chips Popcorn Nuts Crackers.% Salty Household Penetration.%.%.%.% CMG Crackers Cookies Nuts.

% General Merchandise.% Sweet Hershey is your ideal partner $.M REESE S $.M SNICKERS $.

.% Milk POS $ SALES $.M HERSHEY S $.M KIT KAT.% Other Tobacco Products Hershey has of the Top Chocolate s in C-Store Candy is widely appealing (Everyone loves Candy).

% Carbonated Beverages Hershey s year CAGR is driving the category Nielsen Lwk Ending // Nielsen xaoc+c yrs ending //.

2 The C-Store trip is largely planned and fast Candy is an ideal item to offer THE CONVENIENCE TRIP The average transaction is small, under items % % Nearly / of Trips are planned Number of Items Purchased In-Store Average Basket Size (units):. % % % + % $ Spent In-Store Average Store Basket ($): $. % % % % $- $- $- $- $+ More than Half of Trips are minutes or less The top trips involve food for immediate consumption % of Trips Grab & Go To get food for snacking To satisfy my hunger To satisfy my craving To quench my thirst, Beverages, Prepared Foods % of Trips Satisfy Habit Because I ran out of something To satisfy a habit To satisfy my craving To treat myself To quench my thirst Tobacco, Beverages,, Gas Video Mining Excludes gasoline only trips; Top Benefits by Trip Mission Hershey s General Shopping Missions Survey (); TCG Analysis/Touchpoints % of Trips Pit Stop To satisfy my craving To quench my thirst To immediately consume some food, Candy/Gum/Mints, Beverages, Gas, Tobacco Candy is highly impulsive ( Purchase can be influenced in store) % Category Impulse Purchases % % % % % Candy Cookies Chips Popcorn Nuts Crackers.% Salty Household Penetration.%.%.%.% CMG Crackers Cookies Nuts.% Snack Bars.% $. + % $. Snack Cakes Without Candy With Candy Candy is a win for you and a win for your customer.% Candy.% Alternate.% Packaged Beverages.% Salty.% General Merchandise.% Sweet Hershey is your ideal partner $.M REESE S $.M SNICKERS $.M M&Ms # Candy s rank in impulsivity Nielsen Shopper Study Drives higher profit for you Candy is the most profitable of the Top Categories Almost X Top Average!.% Milk POS $ SALES $.M HERSHEY S $.M KIT KAT.% Other Tobacco Products Hershey has of the Top Chocolate s in C-Store Candy is widely appealing (Everyone loves Candy).% Top Categories.% Beer.% Cigarettes NACS SOI.% CMG less Hershey % CMG ranks # in household penetration.% Chocolate Candy.% CMG with Hershey.% Carbonated Beverages Hershey s year CAGR is driving the category Nielsen Lwk Ending // Nielsen xaoc+c yrs ending //.% Chips Candy builds baskets Baskets with Candy have a higher dollar ring Ranking and Relative Importance of Checkout Categories to Customers.% C-Store (%).%.%.% Gum Water Mints Seasonal Candy.% Cookies.% Nuts/ Seeds Strong Innovation % Larger Baskets Nielsen xaoc+c wks ending // Video Mining Drives satisfaction for your customer.% Crackers Hershey Internal Study Front End Optimization Best in Class Retail Coverage WHY CANDY? WHAT S IN IT FOR ME? WHY HERSHEY?

Hershey s Confection Retailer Rewards Program Base Requirements Participation levels # Execute Hershey s Prepack Promotions.

reflected on Page Shipper Promotions Purchase and display a minimum of Hershey s shipper promotions with at least in the first half

% # Seasonal Distribution (Easter, Halloween, Holiday) Carry Seasonal Boxes Take a minimum of box of REESE S King Size or Standard

Unit) Carry Seasonal Prepacks (Power Wing, Counter Unit or Tray).%.%.% Item #: - CADBURY & REESE S Assorted ct.

Counter Ships in January Item #: - HERSHEY S Holiday ct.

Shipper Item #: - Butter Cups lb., ct. DRT ( only) Item #: - Butter Pumpkin ct. Counter Item #: - HERSHEY S Holiday Assorted ct.

Counter # # Shipper Promotions Purchase and display a minimum of Hershey s shipper promotions with at least in the first half of as

% Carry Total SKUs Top National SKUs Plus next per Hershey.

D Transaction Counter Rack.." W x." D x." H ( includes priority innovation; must maintain current Hershey SKU count).

3 Hershey s Confection Retailer Rewards Program Base Requirements Participation levels # Execute Hershey s Prepack Promotions.% Counter Unit Promotions Purchase and display a minimum of Hershey s counter unit promotions with at least in the first half of as reflected on Page Shipper Promotions Purchase and display a minimum of Hershey s shipper promotions with at least in the first half of as reflected on Page /.% # Seasonal Distribution (Easter, Halloween, Holiday) Carry Seasonal Boxes Take a minimum of box of REESE S King Size or Standard Size at Easter, Halloween or Holiday and box of CADBURY CRÈME EGG Candy at Easter Carry Seasonal Prepacks (Power Wing or Counter Unit) Carry Seasonal Prepacks (Power Wing, Counter Unit or Tray).%.%.% Item #: - CADBURY & REESE S Assorted ct. Shipper Ships in January Item #: - Butter Pumpkin oz., ct. DRT ( only) Item #: - Butter Eggs King Size ct. Counter Ships in January Item #: - HERSHEY S Holiday ct. Counter Unit/ Power Wing Additional Participation Options (optional) Item #: - REESE S/ KIT KAT / CADBURY Halloween Standard Bar ct. Shipper Item #: - Butter Cups lb., ct. DRT ( only) Item #: - Butter Pumpkin ct. Counter Item #: - HERSHEY S Holiday Assorted ct. Shipper Item #: - Butter Pumpkins King Size ct. Counter Unit/ Power Wing Item #: - Butter Trees King Size ct. Counter # # Shipper Promotions Purchase and display a minimum of Hershey s shipper promotions with at least in the first half of as reflected on Page / Hershey Top Performers Distribution Carry Total SKUs Top National SKUs Plus next per Hershey.% Carry Total SKUs Top National SKUs Plus next per Hershey.% Carry Total SKUs Top National SKUs Plus next per Hershey.% Point of Purchase Merchandising Display Hershey s Counter Rack OR Under-the-Counter Rack Location: Expandable Dimensions: Item #: D Transaction Counter Rack.." W x." D x." H ( includes priority innovation; must maintain current Hershey SKU count).% Location: Under-the-Counter Compressed Dimensions:." W x." H x." D Expanded Dimensions:." W x." H x." D Item #: D Secondary Merchandising Options (select up to ) Hershey s Exclusive King Size Rack Location: Food Service or Fountain Area Dimensions:." W x." D x " H Item #: D Hershey s Exclusive Take Home Rack Location: Food Service or Fountain Area Dimensions: " W x " D x " H Item #: D Hershey s Exclusive End Cap Location: Front End Cap Dimensions: " W x." D x " H Item #: D.%.%.% Distribution Options (select up to ) Chocolate Innovation Take Hershey s Key Chocolate Innovation items in month of launch and in second half of. + Net New items Refreshment Innovation Take BREATH SAVERS Protect items in month of launch and in second half of and grow ICE BREAKERS ICE CUBES Bottle Pack Gum + items. + Net New Mint + Net New Bottle Pack Gum Take Home Distribution Grow Take Home items noted on back cover. + Net New items or Minimum of Hershey Take Home SKUs.%.%.%

4 WHY HERSHEY S CONFECTION RETAILER REWARDS PROGRAM? Hershey s Confection Retailer Rewards Program drives results. Base Requirements # # # # Hershey s Prepack Promotions Floor shippers drive a % lift in sales while on display. Carry Hershey s Top National Performers (including priority innovation items) Hershey s Top National Items generate % greater velocities than the average C-Store item. Display Hershey s Counter Rack and/or Under-the-Counter Rack Confection Sales increase up to % when placed at the counter. Seasonal Distribution (Easter, Halloween, Holiday) Seasons are +$M in C-Store since, with Hershey contributing % of the growth. Hershey s Instant Consumables accounted for over % of total seasonal sales in. Additional Participation Options (optional) SECONDARY MERCHANDISING OPTIONS (select up to two) Incremental CMG displays capture / of the category shoppers. First year P participants achieve an average of Minimum of counter units for.% Minimum of shippers for.% Minimum of shippers for.% Plus next SKUs per Hershey for.% Plus next SKUs per Hershey for.% Plus next SKUs per Hershey for.% Carry seasonal boxes for.% Carry seasonal power wings or counter units for.% Carry seasonal power wings, counter units or trays for.% Hershey s Exclusive King Size Rack.% Hershey s Exclusive Take Home Rack.% Hershey s Exclusive End Cap.% DISTRIBUTION OPTIONS (select up to three) Chocolate Innovation Take all Key Chocolate Innovation items listed in Section a during the month of launch and in the second half as + Net New Hershey SKUs..% Hershey s Chocolate Innovation accounted for % of total CMG growth within C-Store. Refreshment Innovation Take both Mint Innovation items in Section b during the month of launch and in second half as + Net New Hershey Mint SKUs. Grow Bottle Pack Gum + Net New with items identified in Section b. Hershey has a % share of Mint and drove % of growth within C-Store. While total Gum was flat in, ICE BREAKERS Bottle Packs grew +%..% Take Home Distribution Grow Take Home items + Net New or minimum of Hershey Take Home SKUs. Hershey has a % share of HTM Pouch and has of the Top items..% +% Hershey s sales increase REESE S Football Playoff Assorted King Size Standard Bars REESE S NCAA College Basketball King Size Bars REESE S & COKE Bundle Standard Bars /$. King Size Bars HERSHEY S Wounded Warrior Project Assorted Standard & King Size Bars PAYDAY Every Day Sweepstakes King Size Bars Standard Bars REESE S NCAA College Football King Size Bars HERSHEY S Wounded Warrior Project Assorted Standard & King Size Bars /$. King Size Bars REESE S & COKE Bundle Standard Bars HERSHEY S Assorted Standard Bars Convenience Shipper Promotion Calendar APPLY CONTRACT HERE //-// JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC //-// //-// /-// /-// /-// /-// /-// /-// /-// /-// /-// /-// //-// /-// /-// //-// /-// /-// /-// /-// Available Window Suggested Retail Execution Window /-// /-// /-// /-// /-// Hershey Internal Analytics Nielsen Total C-Store wk Ending // MSA-H weeks ending // Nielsen, - Nielsen Total C-Store wk Ending // Video Mining Maximum Potential.% HERSHEY S Assorted King Size Bars //-// //-//

Drive Incremental High Margin Sales with Hershey s Consumer Promotions! JANUARY REESE S Football Playoff Assorted King Size ct.

Shipper - KIT KAT Wafer Bars Chocolate Bars Chocolate with REESE S BIG CUP Peanut Butter Cups REESE S FAST BREAK Bars SEPTEMBER REQUIRED REESE S NCAA College Football King Size ct.

Shipper - KIT KAT Wafer Bars Chocolate Bars Chocolate with REESE S BIG CUP Peanut Butter Cups REESE S FAST BREAK Bars Football Playoff! Price! O.I. $.

NCAA, Final Four, NCAA March Madness, NCAA Sweet Sixteen are licensed by or trademarks of the National Collegiate Athletic Association Standard Bar ct.

5 Drive Incremental High Margin Sales with Hershey s Consumer Promotions! JANUARY REESE S Football Playoff Assorted King Size ct. Shipper - KIT KAT Wafer Bars KIT KAT BIG KAT TM Wafer Bars REESE S BIG CUP Peanut Butter Cups REESE S FAST BREAK Bars MAY / $. King Size ct. Shipper - KIT KAT Wafer Bars Chocolate Bars Chocolate with REESE S BIG CUP Peanut Butter Cups REESE S FAST BREAK Bars SEPTEMBER REQUIRED REESE S NCAA College Football King Size ct. Shipper - REESE S FAST BREAK Bars REESESTICKS Wafer Bars REESE S BIG CUP Peanut Butter Cups Butter Cups Minis NOVEMBER / $. King Size ct. Shipper - KIT KAT Wafer Bars Chocolate Bars Chocolate with REESE S BIG CUP Peanut Butter Cups REESE S FAST BREAK Bars Football Playoff! Price! O.I. $. AVAILABLE // // NCAA College Football Price! O.I. $. AVAILABLE // // PROMOTIONS FEBRUARY Price MARCH REQUIRED NCAA Basketball APRIL Save on REESE S & COKE! O.I. $. AVAILABLE // // Off-invoice allowances are only available when delivery is made within dates specified. NCAA, Final Four, NCAA March Madness, NCAA Sweet Sixteen are licensed by or trademarks of the National Collegiate Athletic Association Standard Bar ct. Shipper - KIT KAT Wafer Bars Chocolate Bars Chocolate with HERSHEY S Cookies n Creme Bars YORK Peppermint Patties PAYDAY Peanut Caramel Bars REESE S NCAA College Basketball Assorted King Size ct. Shipper - REESE S FAST BREAK Bars REESESTICKS Wafer Bars REESE S BIG CUP Peanut Butter Cups Butter Cups Minis REESE S & COKE Bundle Assorted Standard Bar ct. Shipper - Save coupons KIT KAT Wafer Bars Chocolate Bars Chocolate with HERSHEY S Cookies n Creme Bars YORK Peppermint Patties PAYDAY Peanut Caramel Bars JUNE - REQUIRED Wounded Warrior Project JULY AUGUST Price! Win a PAYDAY! O.I. $. AVAILABLE // // HERSHEY S Wounded Warrior Project Assorted Standard Bar & King Size ct. Shipper - Standard Size: Chocolate Bars Chocolate with HERSHEY Cookies n Crème Bars ALMOND JOY Bars King Size: Butter Cups KIT KAT Wafer Bars KIT KAT BIG KAT TM Wafer Bars REESE S BIG CUP Peanut Butter Cups PAYDAY Every Day Assorted King Size ct. Shipper - PAYDAY Peanut Caramel Bars HERSHEY'S Milk Chocolate with Almonds Bars Chocolate Bars KIT KAT Wafer Bars Standard Bar ct. Shipper - KIT KAT Wafer Bars Chocolate Bars Chocolate with HERSHEY S Cookies n Creme Bars YORK Peppermint Patties PAYDAY Peanut Caramel Bars OCTOBER Wounded Warrior Project ANY MONTH* Item # - Mix # includes YORK Peppermint Patties Item # - Mix # includes PAYDAY Peanut Caramel Bars HERSHEY S Wounded Warrior Project Assorted Standard Bar & King Size ct. Shipper - Standard Size: KIT KAT Wafer Bars REESE S White Peanut Butter Cups KIT KAT White Wafer Bars King Size: Chocolate Bars Chocolate with HERSHEY S Cookies n Creme Bars TAKE Bars HERSHEY S Assorted Standard Bar ct. -in- Counter / Shipper Butter Cups Chocolate Bars KIT KAT Wafer Bars Chocolate with HERSHEY S Cookies n Creme Bars YORK Peppermint Patties or PAYDAY Peanut Caramel Bars ANY MONTH* REESE S & COKE Bundle Assorted Standard Bar ct. Shipper - Save coupons KIT KAT Wafer Bars Chocolate Bars Chocolate with HERSHEY S Cookies n Creme Bars YORK Peppermint Patties PAYDAY Peanut Caramel Bars HERSHEY S Assorted King Size ct. -in- Counter / Shipper Butter Cups KIT KAT Wafer Bars Chocolate Bars Chocolate with REESESTICKS Wafer Bars REESE S BIG CUP Peanut Butter Cups PAYDAY Peanut Caramel Bars or REESE S FAST BREAK Bars REQUIREMENTS Pick a minimum of of these shippers (March, June & Sept required): JAN REESE S Football Playoff Assorted King Size Shipper FEB Standard Bar Shipper MAR REESE S NCAA College Basketball King Size Shipper APR REESE S & COKE Bundle Standard Bar Shipper MAY / $. King Size Shipper * Mix and quantity vary by region JUN HERSHEY S Wounded Warrior Project Standard Bar & King Size Shipper DECEMBER Save on REESE S & COKE! JUL PAYDAY Every Day Assorted King Size Shipper AUG Standard Bar Shipper SEP Item # - Mix # includes REESE S FAST BREAK Bars Item # - Mix # includes PAYDAY Peanut Caramel Bars REESE S NCAA College Football King Size Shipper OCT HERSHEY S Wounded Warrior Project Standard Bar & King Size Shipper NOV / $. King Size Shipper DEC REESE S & COKE Bundle Standard Bar Shipper ANY MONTH HERSHEY S Assorted Standard Bar Shipper ANY MONTH HERSHEY S Assorted King Size Shipper PROMOTIONS

Hershey s Counter Unit Promotions Requirement: Pick a Minimum of of These Counter Units (March, June and Sept Required) JANUARY AND AUGUST KIT KAT Wafer Standard Bar ct.

Counter Unit - Butter Cups." W x." D x." H Packed six ct. per case. Available // MAY AND NOVEMBER HERSHEY S Assorted Standard Bar ct.

" H Consisting of two units and wingable clips Available // FEBRUARY BREATH SAVERS Protect and ICE BREAKERS Mints Assorted ct.

" H Available // JULY ICE BREAKERS ICE CUBES Bottle Packs Gum Assorted ct. -in- Counter - ICE BREAKERS ICE CUBES Peppermint Gum ICE BREAKERS ICE CUBES Spearmint Gum. W x. D x.

" H Consisting of two units and wingable clips Available // JUNE AND OCTOBER (Required) Available / // Available / // HERSHEY S Wounded Warrior Project King Size ct.

units and wingable clips Hershey s TOP National Items generate % greater velocities than the average C-Store item Rank Item Description UPC Rank Item Description UPC Butter Cups. oz.

oz. King Size Chocolate Bars. oz. King Size KIT KAT Wafer Bars. oz. PAYDAY Peanut Caramel Bars. oz. King Size CADBURY CARAMELLO Bars. oz. King Size Chocolate Bars. oz. HERSHEY S Cookies n Creme Bars.

6 Hershey s Counter Unit Promotions Requirement: Pick a Minimum of of These Counter Units (March, June and Sept Required) JANUARY AND AUGUST KIT KAT Wafer Standard Bar ct. Counter Unit - KIT KAT Wafer Standard Bars." W x." D x." H Packed six ct. per case. Available // MARCH AND SEPTEMBER (Required) (Required) Butter Cups Standard Bar ct. Counter Unit - Butter Cups." W x." D x." H Packed six ct. per case. Available // MAY AND NOVEMBER HERSHEY S Assorted Standard Bar ct. -in- Counter - Chocolate Bars Chocolate with Butter Cups KIT KAT Wafer Bars." W x." D x." H Consisting of two units and wingable clips Available // FEBRUARY BREATH SAVERS Protect and ICE BREAKERS Mints Assorted ct. Power Wing - BREATH SAVERS Protect Peppermint Mints BREATH SAVERS Protect Spearmint Mints ICE BREAKERS Coolmint Mints ICE BREAKERS Wintergreen Mints." W x." D x." H Available // JULY ICE BREAKERS ICE CUBES Bottle Packs Gum Assorted ct. -in- Counter - ICE BREAKERS ICE CUBES Peppermint Gum ICE BREAKERS ICE CUBES Spearmint Gum. W x. D x. H Available // APRIL AND DECEMBER REESE S, KIT KAT & PAYDAY Assorted King Size ct. -in- Counter - Butter Cups KIT KAT Wafer Bars PAYDAY Peanut Caramel Bars." W x." D x." H Consisting of two units and wingable clips Available // JUNE AND OCTOBER (Required) Available / // Available / // HERSHEY S Wounded Warrior Project King Size ct. -in- Counter Unit/ Power Wing - Chocolate Bars Chocolate with." W x." D x." H Consisting of two ct. units and wingable clips Hershey s TOP National Items generate % greater velocities than the average C-Store item Rank Item Description UPC Rank Item Description UPC Butter Cups. oz. King Size KIT KAT Wafer Bars oz. King Size REESESTICKS Bars oz. King Size REESE S BIG CUP Peanut Butter Cups. oz. King Size REESE S FAST BREAK Bars. oz. King Size Butter Cups. oz. Chocolate with. oz. King Size Chocolate Bars. oz. King Size KIT KAT Wafer Bars. oz. PAYDAY Peanut Caramel Bars. oz. King Size CADBURY CARAMELLO Bars. oz. King Size Chocolate Bars. oz. HERSHEY S Cookies n Creme Bars. oz. King Size Chocolate with Almonds Bars. oz. WHATCHAMACALLIT Bars. oz. King Size ALMOND JOY Bars. oz. King Size HERSHEY S Cookies n Creme Bars. oz. ICE BREAKERS Coolmint Mints. oz. HERSHEY S COOKIE LAYER CRUNCH Bars. oz. King Size KIT KAT BIG KAT TM Wafer Bars oz. King Size Refer to Regional Sell Sheet for next items REGIONAL LEGEND Sell Sheet # Pacific Mountain West North Central West South Central East North Central East South Central New England Mid Atlantic South Atlantic Nielsen Total C-Store wk Ending //

7 range, typically a bird s-eye or / view. There are two styles of Distribution Options (select up to three % Rebate on Each) Chocolate Innovation Take all Innovation Chocolate items shown below during the month of launch and in the second half as + Net New Hershey SKUs. range, typically a bird s-eye or / view. There are two styles of Refreshment Innovation Take both BREATH SAVERS Protect items shown below during the month of launch and in second half as + Net New Hershey Mint SKUs. Grow ICE BREAKERS ICE CUBES Bottle Pack Gum + Net New with items shown below. Page : Section Name Page : Section Name Take Home Distribution Grow Take Home items + Net New or minimum Hershey Take Home SKUs Page : Section Name (DCT/BM) CONFECTION RETAILER REWARDS PROGRAM CONVENIENCE range, typically a bird s-eye or / view. There are two styles of

Part 2 of 3 - Ensure the April Item-of-the-Month display (WIC ) is on the sales floor with the recommended M&M and Orbit products.

Job Name: ML Mars 4/2-4/15 Audit/Build (2 displays) & IRCs Project: 170312000715 Date: 4/3/2017-4/14/2017 SERVICE OBJECTIVE Part 2 of 3 - Ensure the April Item-of-the-Month display (WIC 981336) is on the