CATEGORY PERFORMANCE: TOTAL CHOCOLATE CANDY

Dollar Sales $2,272,630,000 % Change From Last Year 0.62ndy, but sales growth has been waning against a backdrop of growing diet and health awareness. As consumers satisfy their sweet teeth with new dietetic varieties by the handful, it's growing sales of low-carb and sugar-free chocolate alternatives that are seen as helping keep the candy category afloat.Supermarkets continue to sell more than half

Dollar Sales $2,272,630,000 % Change From Last Year 0.62

ndy, but sales growth has been waning against a backdrop of growing diet and health awareness. As consumers satisfy their sweet teeth with new dietetic varieties by the handful, it's growing sales of low-carb and sugar-free chocolate alternatives that are seen as helping keep the candy category afloat.

Supermarkets continue to sell more than half the candy bought in food and drug stores and mass merchandisers combined, but dollar sales advanced just 0.62% in the 52 weeks ended June 13. Drug stores, while commanding a small share of the category, have enjoyed steady dollar-sale percentage gains over the past two years, as operators have worked to expand food sales and capitalize on candy's status as an impulse buy. Sales in this channel grew at a higher rate, 3.7% for the 52 weeks ending June 13, to reach $1.2 billion. Sales for the prior two calendar years were even stronger, growing nearly 5% in calendar year 2003 to $1.2 billion; and 5.7% to $1.1 billion in calendar year 2002.

Overall, the combined dollar sales in supermarkets, drug stores and mass merchandisers have been an average of the supermarket and drug channel, Sales for the most recent IRI reporting period showed a sales increase of 1.1% on sales of $4.13 billion, up slightly from calendar year 2003, when sales were $4.12 billion.

Dollar Sales Latest 52 Weeks Ended June 13, 2004; % Change; Dollar Sales Calendar Year Ended Dec. 28, 2003; % Change; Dollar Sales Calendar Year Ended Dec. 29, 2002; % Change

Supermarkets: $2,272,630,000; 0.62; $2,285,694,000; 2.00; $2,240,851,000; -2.89

Drug: $1,189,987,000; 3.73; $1,173,565,000; 4.92 $1,118,499,000; 5.72

F/D/MX: $4,132,406,000; 1.10; $4,129,306,000; 1.72; $4,059,592,000; -0.84