Ray Major

May 12, 2014

The Hershey Company and the Global Shea Alliance

KEY MESSAGES

• The Hershey Company will be an active and supportive member of the Global Shea Alliance

• We will look for synergies with and use lessons learned from our cocoa sustainability programs

• We will work with our supply chain partners to develop programs on the ground that build capacity and support community development through women’s education and empowerment

• In the food industry shea competes with other ingredients. We must always design our programs to make shea more, not less competitive with its alternatives

1

FIRST - A LITTLE ABOUT HERSHEY AND SHEA

• Hershey’s annual shea butter consumption is about 3,300

tonnes

• Shea butter is a component of cocoa butter equivalents

(CBE’s) used to make the white coating in Cookies’n’Crème

and other chocolate flavored coatings

• CBE’ represent about 2% of our annual ingredient spend

• CBE’s are either a blend of palm oil and shea or a blend of

palm oil and sunflower oil

2

HERSHEY’S LEGACY

4

MILTON S. HERSHEY

“The first person to link

Commerce with Compassion”

-Johnny O’Brien, ’65 MHS graduate

MHS President 2004-2008

5

OUR FIRST 100 YEARS OF MAKING A DIFFERENCE

1894 Hershey

Company Founded

1903 Hershey, PA

Founded

1905 Hershey Trust

Company Founded

1909 Hershey Deed of Trust

Establishing Hershey Industrial School

1918 M.S. Hershey

Deeds Fortune to Hershey Industrial School

HERSHEY TRUST COMPANY TRUSTEE

6

MILTON HERSHEY

SCHOOL (non-profit)

MILTON HERSHEY

SCHOOL TRUST

THE M.S.

HERSHEY

FOUNDATION (non-

profit)

MILTON S.

HERSHEY

TESTAMENTARY

TRUST

(non-profit) HERSHEY TRUST

COMPANY (100% owned)

THE HERSHEY COMPANY (31% Stock Ownership – 72% Interest)

HERSHEY ENTERTAINMENT

AND RESORTS (100% Owned)

Hersheypark, Hersheypark Stadium, Giant

Center, Hershey Bears, Hersheypark Arena,

Star Pavilion, ZooAmerica, Hershey Hotel,

Hershey Spa Hershey Lodge & Convention

Center, Cocoa Beanery, Hershey Nursery,

Hershey Dry Cleaning, Hershey Country Club,

Hershey Links, Spring Creek Golf Course,

Dutch Wonderland, Hershey Highmeadow

Campground

Real Estate Management Land Holdings

Lease & Rental Properties

Retail Property Management

HERSHEY THEATRE (Managed by Hershey

Entertainment & Resorts)

THE HERSHEY

STORY Museum on Chocolate Avenue

HERSHEY GARDENS

HERSHEY

COMMUNITY

ARCHIVES

DERRY TOWNSHIP

SCHOOL SYSTEM

MILTON HERSHEY

SCHOOL Founded 1909 Enrollment 1,800+

Over 10,000 Acre Campus

155+ Student Homes

Four Instructional Centers

Founders Hall • Administrative Offices

• Visitors’ Reception Area

• Chapel - Auditorium

MEDICAL CENTER, PENN

STATE UNIVERSITY

Founded: 1963

$50 Million Donation from

M.S. Hershey Foundation &

$21 Million in Federal & State

Grants

MILTON S. HERSHEY

CHOCOLATETOWN

SQUARE (Park)

MILTON HERSHEY SCHOOL • Founded in 1909 by Milton & Catherine

Hershey as a home for orphan boys

• Today, boys and girls of all races attend grades pre-

k through 12

• Students come from severe poverty (annual HHI

$14,500) and social risk

7

HERSHEY, A GLOBAL COMPANY…

$6.8 billion net sales in 2013

~14,000 employees around

the world

Over 80 brand names

Products available in over

70 countries around the world

Hilo , Hawaii

Robinson

Memphis

Stuarts Draft

Hazleton

Reese

Y&S Lancaster

West Hershey

14 NORTH AMERICAN MANUFACTURING LOCATIONS

Dagoba

Monterrey

Toronto (Hershey Canada)

Brookside (British Columbia) Brookside (Quebec)

Guadalajara

INTERNATIONAL MANUFACTURING LOCATIONS

Brazil 51% joint venture with Bauducco

India (2) 100% Hershey owned & operated

China 46% joint venture with Lotte Golden Monley – 5 additional manufacturing operations

HERSHEY’S BRANDS HERE IN THE US…

COCOA SUSTAINABILITY – OUR PHILOSOPHY

• Cocoa is a strategic ingredient – we need to

guarantee supply

How? • Motivated cocoa farmers and thriving cocoa communities

• Government engagement

• Efficient supply chain partners

• Programs on the ground that build capacity

• Standards and Independent Verification

12

TRANSFORMING COCOA IN WEST AFRICA

Where We Are Today Where We Need to Go

13

Subsistence Farming Business Farming

Low Yields,

Extraction

Mentality, Extra

Cash

High Yields

Sustainable Production

Income

Poverty,

Social Issues

Pathway to Wealth, Thriving

Communities

5/29/2014 8:56 PM Sr. Leaders Meeting 10-21-08 14

HERSHEY’S LEARN TO GROW: DISTANCE LEARNING

• The purpose of distance learning is to build

awareness potential for community

development through advanced

technology

• Accelerate the use of technology based

learning in other rural Ghana schools

• Technology can and will revolutionize

development & learning in the next 10

years

• Technology will become evermore

affordable & available for rural Ghanaians

15

16

SO WHAT ABOUT SHEA SUSTAINABILITY?

• Shea is a not a strategic ingredient for Hershey, but it

has strong synergies with cocoa

Same countries

Similar and in some cases linked social issues

Similar supply chain issues

17

TRANSFORMING SHEA IN WEST AFRICA

Where We Are Today Where We Need to Go

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Extraction/Collection Managed Agroforestry Systems

Weak Individual

Collectors

Strong Organizations

In Control of their Future

Poverty,

Social Issues

Pathway to Wealth, Thriving

Communities

HERSHEY AND SHEA SUSTAINABILITY – OUR VISION FORWARD

• The price of shea sustainability, like any ingredient, should be included in its cost.

• We will look for synergies with our programs in cocoa

• We will work with our supply chain partners to develop on the ground programs

that build capacity and efficiency with focus on women’s education and

empowerment.

• We will look for Public and Private Partnerships that strengthen and improve the

transparency of the shea supply chain

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HERSHEY AND THE GLOBAL SHEA ALLIANCE

• Our expectation for GSA

• Provide a forum that can bring together all components of the shea

supply change

• Establish standards and guidelines that insure a sustainable shea

supply

• Independently verify that our programs are working

• Liaise with the governments of shea producing countries

• Initiate and/or administer public private partnerships when and

where they occur

• Be the voice of shea

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THANK-YOU