January June 2006

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Confectionery IndustryReview
January June 2006 August, 2006
2
USA Market

• 2006 First Six Months
• Retail Performance

3
2006 Retail Confectionery Sales
52 week sales estimates July 2005 June
2006
Change Confectionery 28.6 3.2 (Chocolate
, Sugar, Gum) Sales in billions Estimates are
based upon interpretation of IRI retail sales
data, NCA Shipment Data, and Euromonitor
4
2006 Retail Channel Performance
Based on 52 Week Sales July 2005 June 2006
Channel 2006 Sales 2006
Growth Supermarkets 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 Ware
house Clubs 3.1 Even Dollar
Stores .8 0.2 Vending 1.1 -0.4 Bulk
1.4 Even
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
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2006 Retail Category Sales
Category Sales Growth Category Size (000
millions) Misc. Snacks 30.0 197 Coffee
7.8 3,001 Snack/Granola Bars 4.7
1,873 Candy Gum 1.2 7,921 Salty
Snacks 0.6 7,320 Bakery Snacks -0.4
839 Carb. Beverages -0.9 13,409 Ice
Cream -1.2 4,376 Cereal
-1.5 6,082 Cookies -2.1 3,901 Milk
-3.5 10,895 Dry Fruit Snacks
-6.6 511 Information Resources 52 week sales
through July 16, 2006
Supermarkets, Drug and Mass Only
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Candy and Gum Rank 3rdAmong Food Categories
IRI Food, Drug Mass Excluding Wal-Mart 7/16/06
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2006 Seasonal Performance
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Confectionery Seasonal Sales
( in millions of dollars)
Sales 2006 Valentines Day
971 2006 Easter 1,884 2005 Halloween
2,088 2005 Christmas 1,375
Results and Projection as of 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

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Seasonal Confectionery Trends
2006 2005 2004 2003
2002 VALENTINES -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 FDM
0.1
7.0
2.3
2.4
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USA Market

• 2006 First Six Months
• Manufacturer Performance

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2006 Confectionery Performance
Manufacturers Shipments January May 2006
Category Manf. Sales
Chocolate 2.5 billion -0.2 Non-Choc.
1.4 billion 6.8 NCA Monthly Shipment
Reports January May 2006
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USA Market
New Trends
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Trends - What's for 2006/07
Hot

• Limited Editions
• Dark Chocolate
• High End and Gourmet Candy
• High Cocoa Content Chocolates
• Single Origin Chocolates

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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
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Trends - What's for 2006/07
Hot

• Sugar Free Gums
• Licorice
• Single Serve Seasonal Offerings
• Breath Fresheners

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USA Market

• 2005 Annual
• Confectionery Performance

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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 Reports Differences based on
estimation and Not specified by kind category.
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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 billions NCA
Shipment Data and Euromonitor
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Retail Landscape Changing
Channel 2005 Sales 2005
Growth Supermarkets 4.3 -1.1 Wal-Mart 2.8
3.8 Mass X Wal-Mart 1.2 0.7 Convenience
Stores 3.8 8.8 Drug Stores 2.3 1.0 Ware
house Clubs 3.2 3.6 Dollar
Stores .8 Even Vending 1.2 -1.9 Bulk
1.5 -0.5 estimates