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Success will be driven by Premium Chocolate which has: Health innovation Driven by the Benefits of Cocoa More visible b

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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Success will be driven by Premium Chocolate which has: Health innovation Driven by the Benefits of Cocoa More visible b

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  1. 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

  2. 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

  3. 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

  4. 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

  5. The Ovation® 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,

  6. The Ovation® Target Consumer

  7. Ovation® Sticks are A Delicious Treat • Individually wrapped sticks are great for portion control or in a candy bowl • Ovation® Sticks designed as a light treat perfect for after dinner, after coffee or as a refreshing snack • With just 15 calories per stick, it’s a guilt-free snack! • All Natural, premium chocolate sticks filled with delectable flavored centers

  8. Available by the individual flavor or assorted floorstands • All flavors were designed to complement the premium chocolate creating a refreshing treat: • Dark Chocolate with Mint Filling • Dark Chocolate with Cappuccino Filling • Dark Chocolate with Orange Cream Filling • Dark Chocolate with Irish Cream Filling • Milk Chocolate with Caramel Filling

  9. Ovation® Sticks Pricing • Ovation® Sticks 3.5oz 10ct • $1.80 cost • $2.99 SRP • 40% margin

  10. Ovation® Sticks Floorstands 60ct Assorted Display Options (30) Mint (9) Caramel (9) Cappuccino (6) Orange (6) Irish Cream (30) Mint (15) Cappuccino (8) Orange (7) Irish Cream

  11. Ovation® has take Break-a-Parts to a New Level • Ovation® offers a variety great flavors, which includes our newest variety – the Ovation® Mint Filled Break-a-Part – the only filled BAP in the market! • The original Break-a-Part Orange, was traditionally orange flavored chocolate and sold predominantly at the Holidays

  12. Ovation® Break-a-Parts • With a full line of flavors for every palate, Ovation® Break-a-Parts are fun and engaging – and they taste great! • Made with all-natural, premium chocolate and available in seven delicious flavors, that are great for sharing and gift giving: • Dark Chocolate with Mint Filling • Orange Flavored Dark Chocolate • Orange Flavored Milk Chocolate • Key Lime Flavored Milk Chocolate • Raspberry Flavored Milk Chocolate • Milk Chocolate with Almonds • Pumpkin Spice Milk Chocolate

  13. Ovation® Break-a-Parts • Ovation® Break-a-Parts • $2.40 cost • $3.99 SRP • 40% margin

  14. Ovation® Break-A-Parts Floorstands 64ct Assorted Display Options (24) Milk Orange (24) Pumpkin Spice (16) Dark Orange (48) Milk Raspberry (16) Key Lime (16) Milk Orange (16) Dark Orange (16) Milk Raspberry (16) Key Lime (48) Milk Orange (16) Dark Orange

  15. Ovation® on TV! Ovation® Break-a-Parts and Sticks will be featured on Food Factory on the Food Network • Episodes will air : • January - Canada • April - USA

  16. PR Driving Consumer InterestBlogger Coverage and Giveaways O Our Break-a-Parts were part of a photo shoot with Pottery Barn! Review, recipe and giveaway! Sweet Simple Stuff Drug Store Divas New use for Ovation® Break-a-Parts! Review, recipe and giveaway!

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