2006

Year End

Confectionery IndustryReview

USA Market

Retail Performance

2006 Retail Confectionery Sales

52 week sales estimates January - December 2006 % $ Change

Confectionery $28.9 +2.8%(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 +0.1%*Wal-Mart $3.2 +6.7% Mass X Wal-Mart $1.3 1.5%Convenience Stores $4.2 +9.4%Drug Stores $2.4 +4.6%*Warehouse Clubs $2.1 -0.3*Dollar Stores $.8 EvenVending $1.2 +0.5%*Bulk $1.5 -0.4

Based on 52 Week Sales – January - December 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 •Sales Figures in billions

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

Misc. Snacks +28.0% $220

Snack/Granola Bars +4.3% $1,915 Coffee +3.0% $3,017Bakery Snacks +3.5% $860Salty Snacks +2.6% $7,462Candy & Gum +1.6% $8,000Ice Cream -0.3% $4,402Cereal -0.6% $6,108Cookies -0.6% $3,919

Carbonated Beverages -1.2% $13,315 Milk -2.9% $10,823Dry Fruit Snacks -3.5% $510

Information Resources FDMX 52 week sales through December 31, 2006

Supermarkets,

Drug and Mass Only

Candy and Gum Rank 3rdAmong Food Categories

$13.30

$7.50

$6.10

$4.40

$3.90

$8.00

$10.80

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

Carbonated Beverages

Milk

Candy& Gum

Salty Snacks

Cereal

Ice Cream

Cookies

Pro

du

ct C

ateg

orie

s

$ Billions

-1.2%

-2.9%

+1.6%

+2.6%

-0.6%

-0.3%

-0.6%IRI Food, Drug & MassExcluding Wal-Mart 12/31/06

2006 Seasonal Performance

What Affects Seasonal Sales?

Date/Day of HolidayThe EconomyConsumer ConfidenceConsumer MoodShopping Patterns/HabitsMerchandising Strength/Visibility

Confectionery Seasonal Sales(** in millions of dollars)

$ Sales

2006 Valentine’s Day $971

2006 Easter $1,884

2006 Halloween $2,146

2005 Christmas $1,389Results as of January 2007Source: 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

Holiday 2005 2006 2007

Valentine’s Day Monday Tuesday Wednesday

Easter 3/27 4/16 4/8

Halloween Monday Tuesday Wednesday

Christmas Sunday Monday Tuesday

Thanksgiving 11/24 11/23 11/22

Shopping Days 31 32 33

Holiday Dates/Days

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%+1.0%

+2.8%

USA Market

2006 First Eleven Months

Manufacturer Performance

2006 Confectionery Performance

Category Manf. Sales %

Chocolate $6.5 billion +0.9%

Non-Choc. $3.1 billion +6.1%

NCA Monthly Shipment Reports January – May 2006

Manufacturers’ ShipmentsJanuary – November 2006