Key External Factors

Opportunities (valid until 2011)

1 Chocolate accounting for 52.6% of the market's total value
2 Mass market for chocolate accounting for 80.3% of sales and premium for 19.7%
3
Grocery was the largest channel to sell chocolate accounting for 15.8%, followed by convenience
stores at 11.7%, drug store at 9%, and Walmart at 8.8%
4
Demand for concern of health increases in the US. In which, dark chocolate sales benefiting from
flavanols
5
New labelling with terminology emphasizing shareability, portion control and saving a piece for later
especially stand-up pouches and bigger sizes
6 Increases in pricing attributable to rising commodity costs
7
Among confectionary eating adults in 2012, chocolate was consumed by 92% with average 7.8 pieces
per month
8
Among confectionary eating children in 2012, chocolate was consumed by 95% with average 3.9
pieces per month
9 Chocolate accounts for 52.6% of the market's total value
10 America captured 2nd largest regional share of global confectionary market
11 Women are more likely to eat chocolate than men (94% versus 90%)
12
13
14
No.
Weight Rating Weighted Score
1
2
3
No.
Key External Factors
Threats (valid until 2011)
Many other companies in the US competes better than Apollo in chocolate sector
Men are more concern about price than women
A competitor had also tested a dark chocolate with fruit concept and was likely not far from an introduction
Weight Rating Weighted Score
1
2
3
No.
Key External Factors
Strength (valid until 2011)
Global consumer packaged-goods powerhouse with products distributed in 170 countries
#2 in global confectionary market
Weight Rating Weighted Score
Key External Factors
Weakness (valid until 2011)
1 Enjoyed #2 position largely due to products other than chocolate
2 Hasn't built chocolate plant in the US
3
No. Weight
Rating Weighted Score
Trial Rate
Definitely would buy 23% Mediocre Product 28%
Probably would buy 40% Average Product 33%
U.S. Household 120 Excellent Product 38%
Penetration 92% Repeat Purchase Occasions (unit) 4
Low Support 14% Low 60%
Medium Support 17% Medium 65%
High Support 20% High 79%
Pricing $4.49 Retail Margin 35%
Note: Hurdle Rate = $30MM
Total Volume
Retail Sales Volume
Montreaux Sales Volume
% of Households
Repurchasing
Repeat Volume
ACV
Marketing-Adjusted Trial Rate
Trial Households (MM)
ACV
Trial Purchase Rate Repeat Rate by Product
Marketing Plan Adjustments
All Commodity Volume Consumer Awareness
30.400%
Low Medium High
Low 2.35% 2.85% 3.36%
Medium 2.55% 3.09% 3.64%
High 3.09% 3.76% 4.42%
Low Medium High
Low 2.819 3.423 4.027
Medium 3.054 3.709 4.363
High 3.712 4.507 5.303
L - L L - M L - H M - L M - M M - H H - L H - M H - H
Mediocre 3.157 3.834 4.511 3.421 4.154 4.887 4.157 5.048 5.939
Average 3.721 4.519 5.316 4.031 4.895 5.759 4.900 5.950 7.000
Excellent 4.285 5.203 6.122 4.642 5.637 6.632 5.642 6.851 8.060
LL LM LH ML MM MH HL HM HH
M 5.977 7.257 8.538 6.475 7.862 9.250 7.869 9.556 11.242
A 6.540 7.942 9.344 7.086 8.604 10.122 8.612 10.457 12.302
E 7.104 8.627 10.149 7.696 9.346 10.995 9.354 11.358 13.363
Retail Sales Volume
26.8352 32.5855 38.3359 29.0714 35.301 41.5306 35.333 42.9043 50.4757
29.3668 35.6597 41.9525 31.814 38.6313 45.4486 38.6663 46.9519 55.2375
31.8984 38.7338 45.5691 34.5566 41.9616 49.3666 41.9996 50.9995 59.9994
Montreaux Sales Volume
17.4429 21.1806 24.9184 18.8964 22.9457 26.9949 22.9664 27.8878 32.8092
19.0884 23.1788 27.2691 20.6791 25.1103 29.5416 25.1331 30.5187 35.9044
20.734 25.1769 29.6199 22.4618 27.275 32.0883 27.2997 33.1496 38.9996
ACV - Support
Repeat Volume
Support
Support
Marketing-Adjusted Trial Rate
Trial Households (MM)
Apollo CFG 12 of company's iconic brands 80 brands in which 3 brands are CFG's
Revenue($) 54.4 b 19.1 b 1 b 0.1 b
Net Income($) 3.5 b 1.26 b
Fishers Apollo Cornelius
Texas US Swiss
% Share of Market's value 16.80% 15.40% 9.10%
Fishers Lancester
US chocolate market share 34.80% 34.40%
Grocery Convenience Stores Drug Stores Walmart
Sales 15.80% 11.70% 9% 8.80%
>3.5 oz Seasonal <=3.5 oz <=0.6 oz
$7,179 m $4,407 m $3,479 m $2,522 m
Growth 7.60% 9.90% 18.50% 10.80%
Apollo's Performance
Confectionary
Chocolate
Chocolate Market Channel
Top 4 chocolate accounting for 94.4% market value
80 brands in which 3 brands are CFG's