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Retail Chocolate Bars

Retail Chocolate Bars. Category is Growing. Mass Market Chocolate in North America is forecasted to grow at 8% over the next 5 years. Success will be driven by Premium Chocolate which has: Health innovation Driven by the Benefits of Cocoa More visible branding strategies Certification

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Retail Chocolate Bars

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  1. Retail Chocolate Bars

  2. Category is Growing Mass Market Chocolate in North America is forecasted to grow at 8% over the next 5 years • Success will be driven by Premium Chocolate which has: • Health innovation Driven by the Benefits of Cocoa • More visible branding strategies • Certification • Sophisticated packaging • Taste for indulgence Source: Euromonitor International, August, 2013

  3. Premium Chocolate Driving Growth In 2011, Premium Chocolate had grown to 19.7% Share of the Chocolate Category ($1.13 Billion) Growth has been attributed to: • Increasingly widespread acceptance of premium chocolates, spurred both by consumers’ desire to indulge in this “affordable luxury” and by the influence of foodie culture • Growth of chocolate retailers, both through franchise expansion and by successful independent shops looking to expand their footprints • Continued innovation in packaging and flavors by major and niche chocolate manufactures alike • Increased marketing support and advertising expenditures Source: Chocolate Candy in the U.S. by Packaged Facts, 2012

  4. Chocolate Trends • Chocolate Industry Forecast Includes a Focus On: • •Sales of premium items that are driving the category • High-end varieties • Renowned regions • Hidden secret recipe • •Seasonal and boxed assorted chocolates - with sales expected to expand 13% between 2010 and 2015 • •Chocolates for cooking and baking • All Positioned as “Affordable Luxury” Source: Mintel Group, Aug. 2013, Field Lens by Matt Sena, 2013

  5. Americans Love Chocolate The Average American Consumes Chocolate Twice/Week American Chocolate Eatings/Capita % Daily Penetration 107Times/Year = Twice/Week Source: NPD Snack Track Feb, 2010

  6. The Niagara Chocolates® Line Offers Chocolate that is Gourmet, All Natural and Made in the USA • 25% of US shoppers look for “All Natural” products • 17% of US shoppers preferred “Made or Grown in the USA” products • 22% of Consumers will travel to a store that is not close to their home to find organic/natural products Gourmet, Natural Chocolate will Generate Incremental Volume and Margin Sources: Natural Foods Merchandiser, 2012 Market Overview, 2013 10 Key Trends in Food, Nutrition & Health conducted by Kampffmeyer Food Innovation, 2013 MamboTrack Annual Natural and Organic Product Survey, Eco Pulse Survey by the Shelton Group,

  7. About Niagara Chocolates® • Niagara Chocolates has been making premium chocolate candy for more than five decades • With roots in fundraising, Niagara Chocolates have traditionally been available in Western NY and are well known throughout the region for great tasting, premium confectionery

  8. Niagara Chocolates® Bars are Available in four varieties • Bars are: • Premium Chocolate • Kosher Dairy • Made in the USA • Crisped Rice and Toasted Almond are All Natural • $.56 cost • $1.00 SRP • 44% margin

  9. Bars are Packed in Display Cartons for Easy Merchandising 24 bars per display/carton; 6 cartons per case

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