The document discusses opportunities to grow the confectionery category in retail stores. It identifies a $10 billion growth opportunity by improving merchandising practices based on research. Key findings include that top performing retailers devote more space to confectionery, use best practices like blocking items into segments, and provide more points of purchase interruptions including perimeter and checkout displays. Seasonal merchandising and new product innovation are also opportunities.

1. Expanding the Dimensions of Confectionery A $10 Billion Opportunity Place Retailer’s Logo Here

18. Confectionery Growth & Performance Solutions Are Consumer Driven Consumer Seasonal Merchandising Occasion-Based Marketing Impulse Merchandising New Product Innovation Shopping Interruption Best Practices in Aisle Management Source: Dechert-Hampe & Co.

19. Aisle Management

32. Bring Attention To Candy Section Best Practice

45. NON-CHOCOLATE PEG BAGS NON-CHOCOLATE LAYDOWN BAGS KIDS NOVELTIES LICORICE FUN SIZE BAGS BOX CHOC PREM CHOC DARK CHOC CHOCOLATE LAYDOWN BAGS MULTI- PACKS BLOCK CHOC KING SIZE THEATER BOXES JELLY BEANS MINTS GUM SUGAR FREE CHOC PEG BAGS Confectionery Schematic With Segment Blocking Best Practice

47. Shopping Interruption

48. Dairy Deli Meat Bakery Produce Confectionery Perimeter Displays In-Aisle Display Impulse at Checkout Seasonal & Occasional Candy Sales Are Improved By More Points Of Shopping Interruption Best Practice

50. Candy Is The Most Responsive Category For Display Treatment Source: IRI, Food, 2005 % Increase On Display Only

51. Candy Is Under-Displayed Relative To Response It Generates Source: IRI, Food, 2005 % Grocery Store Displays

53. Make Confectionery Available At Key Shopping Locations What Areas Of The Store Did You Shop Today? Donuts Display Single Serve Frozen Novelties Restrooms Cigarettes Checkout Counter Confectionery King Size Candy Confectionery Sandwich Cooler Fountain Drinks Outdoor Display Outdoor Display Entrance Food Service 43% Source: DHC C-Store Shopper Observations 13% 14% 20% 40% 22% Juices Milk/Dairy Frozen Foods Frozen Ice Cream/ Novelties ATM Machine Potato Chip Rack 2 Liter Carbonated Beverages Nutrition Bars Sweet Goods Snacks Grocery Products Nuts Chips Water Bagged Candy Chips Chips Meat Snacks Salty Snacks Salty Snacks Chips Nuts Hot Dog Grill Chips Chips HBC Batteries/ Film Magazines/ Newspapers Coffee Bar Nutrition Bars Coffee Mugs Muffins Baked Goods Automotive Products Confectionery Baked Goods Drinks Candy Non-Grocery Household Products Pet Food Microwave/ Supply Station Candy/Gum Carbonated/Non Carbonated Drinks Waters Beverage Coolers Best Practice

55. Product Innovation

61. Seasonal Merchandising

63. Confectionery Sales Are Heavily Influenced By Traditional Holidays $MM Valentine’s Easter Halloween Christmas 4 Week Period Ending Source: IRI, FDM, 2005

73. Stores Dressed For The Holidays Create A Candy Buying Environment

77. Occasion Based Marketing

79. Grow Confectionery With Additional Holiday Buying Occasions $MM Valentine’s Easter Halloween Christmas 4 Week Period Ending Super Bowl Mother’s Day School’s Out Summer Days Back-To- School Thanks- giving Source: Dechert-Hampe & Co.

80. Expanded Holiday Buying Occasions Source: Dechert-Hampe & Co. Bowl candy / dessert candy / dinner mints Family Food Holiday Thanksgiving Candy bars Lunchboxes Back to School Hard candy won’t melt Picnics/Ballgames Summer Days Piece candy for treats Kids Home School’s Out Gift candy near cards Every Family Mother’s Day Bowl candy for parties Major Social Event Super Bowl Merchandising Focus Rationale Holiday/Event