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Christmas 2004 Retail Sales Summary

March 1, 2005

Retail Sales Summary

IRI reported a three percent decline in candy sales for the 2004 Holiday (Christmas) Season. This figure is compiled from a combination of Holiday themed candies, both chocolate and non-chocolate, and gift box chocolates sold during the holiday selling season.

Gift-box Chocolate candy sales increased 2.0% in the Food, Drug and Mass (excluding Wal-Mart) channels during the month of December. Chocolate Holiday candy declined 3.9% and non-chocolate Holiday candies declined 4.3 during the twelve-week period.

The drug store class of trade had a very strong Holiday sales period, posting a 2.3% sales increase over the entire Holiday sales period. In December, chocolate candy sales, in particular, were quite strong in drug stores, up seven percent. Supermarkets posted a five percent decline in candy sales during the holiday period even though they had a strong growth in gift-box chocolates.

Christmas 2004 Sales Analysis
Percent Change vs. Year Ago (Food, Drug & Mass excluding Wal-Mart)

Distribution Channel
FD&M
Food
Drug
Mass
Candy Category % Change % Change % Change

% Change

Total Candy -3.0%-5.1%+2.3%-2.9%
Chocolate Candy -3.9%-6.1%+5.2%-3.7%
Non-Chocolate Candy -4.3%-4.1%-0.8%-4.5%
Gift Box Chocolates +2.0%+6.1%-0.2%+6.8%