Contents:

1. Introduction BACKGROUND SOURCES OF INFORMATION DEFINITIONS Sweet Snacks Chocolate Countlines Chocolate Biscuit Bars Cereal Bars Cake Bars and Mini Rolls Salty Snacks Potato Crisps Other Savoury Snacks Snack Nuts 2. Strategic Overview ISSUES DRIVING OR AFFECTING THE MARKET Health Issues Sweet Snacks Salty Snacks Brand Extensions and New Product Developments Sweet Snacks Chocolate Countlines Chocolate Biscuit Bars Cereal Bars Cake Bars and Mini Rolls Salty Snacks Potato Crisps and Other Savoury Snacks Snack Biscuits Rice- and Corn-Based Snacks Snack Nuts Changing Lifestyles: Increased Snacking Occasions Table 1: The UK Working Population by Sex (million and %), 1971, 1975, 1980, 1985, 1990, 1995, 2000 and 2005 Table 2: Number of Full-Time and Part-Time Employed and Self-Employed Workers in the UK by Sex (million), 1985 and 2005 Children's Pocket Money and Disposable Income MARKET DYNAMICS AND SEGMENTATION Table 3: The Total UK Market for Sweet and Salty Snacks by Sector by Value at Current Prices (£bn at rsp), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Figure 1: The Total UK Market for Sweet and Salty Snacks by Value at Current Prices (£bn at rsp), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 4: The Total UK Market for Sweet and Salty Snacks by Subsector by Value at Current Prices (£m at rsp), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 DISTRIBUTION COMPETITIVE STRUCTURE ADVERTISING Table 5: Main Media Advertising Expenditure on Sweet and Salty Snacks (£m), Years Ending March 2004-2006 THE CONSUMER MARKET FORECASTS Table 6: The Forecast Total UK Market for Sweet and Salty Snacks by Sector by Value at Current Prices (£bn at rsp), Years Ending May 2007-2011 3. Sweet Snacks MARKET SIZE Table 7: The UK Sweet Snacks Sector by Subsector by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Figure 2: The UK Sweet Snacks Sector by Value at Current Prices (£bn at rsp), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Chocolate Countlines Table 8: The UK Chocolate Countlines Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 9: The UK Chocolate Countlines Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 Chocolate Biscuit Bars Table 10: The UK Chocolate Biscuit Bars Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 11: The UK Chocolate Biscuit Bars Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 Cereal Bars Table 12: The UK Cereal Bars Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 13: The UK Cereal Bars Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 Cake Bars and Mini Rolls Table 14: The UK Cake Bars and Mini Rolls Subsector by Product Segment by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 15: The UK Cake Bars and Mini Rolls Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 16: The UK Cake Bars and Mini Rolls Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 CONSUMER TRENDS ADVERTISING DISTRIBUTION 4. Salty Snacks MARKET SIZE Table 17: The UK Salty Snacks Sector by Subsector by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Figure 3: The UK Salty Snacks Sector by Value at Current Prices (£bn at rsp), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Potato Crisps Table 18: The UK Potato Crisps Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 19: The UK Potato Crisps Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 Other Savoury Snacks Table 20: The UK `Other Savoury Snacks' Subsector by Product Segment by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 21: The UK `Other Savoury Snacks' Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 22: The UK `Other Savoury Snacks' Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 Snack Nuts Table 23: The UK Snack Nuts Subsector — Sales by Selected Leading Manufacturers by Value at Current Prices (£m at rsp and %), Years Ending September 2003 and 2004, and Years Ending May 2005 and 2006 Table 24: The UK Snack Nuts Subsector — Major Brands by Share of Retail Sales Value (%), Years Ending May 2005 and 2006 CONSUMER TRENDS ADVERTISING DISTRIBUTION 5. Advertising and Promotion MAIN MEDIA ADVERTISING EXPENDITURE Table 25: Main Media Advertising Expenditure on Sweet and Salty Snacks by Brand (£000 and %), Years Ending March 2004-2006 RECENT DEVELOPMENTS Advertising to Children Ofcom Report on Food and Drink Advertising to Children Food Labelling Promotion of Healthier Products European Nutrition and Health Claims Regulation Sponsorship Deals 6. Distribution SALES BY OUTLET TYPE Table 26: Sales of Crisps, Nuts and Other Savoury Snacks by Outlet Type by Value (%), Years Ending April 2003 and March 2004 Table 27: Sales of Chocolate Countlines by Outlet Type by Value (%), 2003 and 2005 7. An International Perspective SWEET SNACKS Table 28: Consumption of Chocolate Confectionery and of Biscuits/Wafers in the EU and EFTA by Volume (million tonnes), 2003 and 2004 Table 29: Per Capita Consumption of Chocolate Confectionery and Biscuits/Wafers by Country by Volume (kilograms per head), 2004 SALTY SNACKS The EU Market Table 30: The EU Savoury Snacks Market by Sector by Value (Äbn and %), 2003 and 2004 The Non-EU Market Table 31: The Non-EU Savoury Snacks Market by Sector by Value (Äm and %), 2003 and 2004 Scandinavia Table 32: The Scandinavian Salty Snacks Market by Sector by Value by Country (Äm and %), 2005 Germany Table 33: The German Salty Snacks Market by Sector by Value (Äm and %), 2004 8. PEST Analysis POLITICAL FACTORS ECONOMIC AND DEMOGRAPHIC FACTORS SOCIAL FACTORS TECHNOLOGICAL FACTORS 9. Consumer Dynamics PRODUCT PENETRATION AND LEVELS OF USAGE Sweet Snacks Sweet Biscuits Table 34: Penetration of Sweet Biscuits by Sex, Age and Social Grade by Frequency of Consumption (% of adults), 2005 Chocolate Bars Table 35: Penetration of Chocolate Bars by Sex, Age and Social Grade by Frequency of Consumption (% of adults), 2005 Other Chocolate Items (Excluding Boxed Chocolate Assortments) Table 36: Penetration of Other Chocolate Items (Excluding Boxed Chocolate Assortments) by Sex, Age and Social Grade by Frequency of Consumption (% of adults), 2005 Fresh or Packeted Cakes Table 37: Penetration of Fresh or Packeted Cakes by Sex, Age and Social Grade by Frequency of Consumption (% of adults), 2005 Salty/Savoury Snacks Savoury Biscuits Table 38: Penetration of Savoury Biscuits by Sex, Age and Social Grade by Frequency of Consumption (% of adults), 2005 Crisps Snacks Table 39: Penetration of Crisps Snacks by Sex, Age and Social Grade (% of adults), 2005 Other Savoury Snacks Table 40: Penetration of Other Savoury Snacks by Sex, Age and Social Grade by Frequency of Consumption (% of adults), 2005 ORIGINAL RESEARCH INTO CONSUMERS' PURCHASING HABITS AND ATTITUDES Table 41: Summary of Research Findings Regarding Consumers' Purchasing Habits and Attitudes Towards Sweet and Salty Snacks (% of respondents), June 2006 Regular (Monthly) Purchasing of Snack Products Potato Crisps or Other Savoury Snacks Table 42: Purchasing of Potato Crisps or Other Savoury Snacks at Least Once a Month (% of respondents), June 2006 Filled Chocolate Bars Table 43: Purchasing of Filled Chocolate Bars at Least Once a Month (% of respondents), June 2006 Chocolate Biscuit Bars Table 44: Purchasing of Chocolate Biscuit Bars at Least Once a Month (% of respondents), June 2006 Cereal Bars Table 45: Purchasing of Cereal Bars at Least Once a Month (% of respondents), June 2006 Cake Bars/Mini Rolls Table 46: Purchasing of Cake Bars/Mini Rolls at Least Once a Month (% of respondents), June 2006 Reducing Purchases of Snack Products Because of Their Fat, Sugar and/or Salt Content Potato Crisps and Other Savoury Snacks Table 47: Reducing Purchases of Potato Crisps or Other Savoury Snacks Because of Their Fat and Salt Content (% of respondents), June 2006 Filled Chocolate Bars and Chocolate Biscuit Bars Table 48: Reducing Purchases of Filled Chocolate Bars or Chocolate Biscuit Bars Because of Their Sugar and Fat Content (% of respondents), June 2006 Switching to Low-Fat, Low-Sugar and/or Low-Salt Variants of Snack Products Potato Crisps and Other Savoury Snacks Table 49: Tendency to Purchase Low-Fat Potato Crisps or Savoury Snacks (% of respondents), June 2006 Cereal Bars Table 50: Tendency to Purchase Low-Fat Cereal Bars (% of respondents), June 2006 Branded Versus Own-Label Snack Products Preferences for Branded Snack Products Table 51: Tendency to Largely Buy Branded Snack Products (% of respondents), June 2006 Preferences for Own-Label Snack Products Table 52: Tendency to Largely Buy Retailers' Own-Label Snack Products (% of respondents), June 2006 Opinions on Manufacturers' Responsibilities to Reduce Fat, Sugar and Salt Content in Snack Products Table 53: Opinion That Manufacturers Should Do More to Reduce Levels of Fat, Sugar and Salt in Snack Products (% of respondents), June 2006 10. Company Profiles INTRODUCTION BURTON'S FOODS LTD Profitability Table 54: Financial Results for Burton's Foods Ltd (£000 and %), Years Ending 31st August 2002 and 30th August 2003, and 70 Weeks Ending 1st January 2005 CADBURY TREBOR BASSETT — CADBURY SCHWEPPES PLC Profitability Table 55: Financial Results for Cadbury Schweppes PLC (£000 and %), Year Ending 28th December 2003, 53 Weeks Ending 2nd January 2005 and Year Ending 1st January 2006 FOX'S BISCUITS — NORTHERN FOODS PLC Profitability Table 56: Financial Results for Northern Foods PLC (£000 and %), 53 Weeks Ending 3rd April 2004, and Years Ending 2nd April 2005 and 1st April 2006 GOLDEN WONDER LTD — TAYTO (NI) LTD Profitability Table 57: Financial Results for Golden Wonder Ltd (£000 and %), Year Ending 29th June 2002, 26 Weeks Ending 28th December 2002 and Year Ending 27th December 2003 Table 58: Financial Results for Tayto (NI) Ltd (£000 and %), 78 Weeks Ending 30th June 2003, 53 Weeks Ending 3rd July 2004 and Year Ending 2nd July 2005 W JORDAN (CEREALS) LTD Profitability Table 59: Financial Results for W Jordan (Cereals) Ltd (£000 and %), Years Ending 28th February 2003, 29th February 2004 and 28th February 2005 KELLOGG MARKETING AND SALES COMPANY (UK) LTD Profitability Table 60: Financial Results for Kellogg Marketing and Sales Company (UK) Ltd (£000 and %), Years Ending 28th December 2002 and 27th December 2003, and 53 Weeks Ending 1st January 2005 KETTLE FOODS LTD Profitability Table 61: Financial Results for Kettle Foods Ltd (£000 and %), Years Ending 30th September 2003-2005 KP FOODS, MCVITIE'S AND THE JACOB'S BAKERY LTD — UNITED BISCUITS FINANCE PLC Profitability Table 62: Financial Results for United Biscuits Finance PLC (£000 and %), 53 Weeks Ending 3rd January 2004 and Years Ending 1st January 2005 and 31st December 2005 Table 63: Financial Results for The Jacob's Bakery Ltd (£000 and %), Years Ending 31st December 2002-2004 MANOR BAKERIES — RHM PLC Profitability Table 64: Financial Results for RHM PLC (£000 and %), 53 Weeks Ending 3rd May 2003 and Years Ending 1st May 2004 and 30th April 2005 Table 65: Financial Results for Manor Bakeries Ltd (£000 and %), 53 Weeks Ending 3rd May 2003 and Years Ending 1st May 2004 and 30th April 2005 MASTERFOODS UK — MARS UK LTD Profitability Table 66: Financial Results for Mars UK Ltd (£000 and %), Years Ending 28th December 2002 and 27th December 2003, and 53 Weeks Ending 1st January 2005 NESTLé ROWNTREE Profitability Table 67: Financial Results for Nestlé UK Ltd (£000 and %), Years Ending 31st December 2003-2005 PROCTER & GAMBLE UK Profitability QUAKER TRADING LTD Profitability Table 68: Financial Results for Quaker Oats Ltd (£000 and %), Years Ending 31st December 2002-2004 Table 69: Financial Results for Quaker Trading Ltd (£000 and %), 61 Weeks Ending 31st December 2003 and Year Ending 31st December 2004 RED MILL SNACK FOODS LTD Profitability Table 70: Financial Results for Red Mill Snack Foods Ltd (£000 and %), Years Ending 30th April 2003-2005 THOMAS TUNNOCK LTD Profitability Table 71: Financial Results for Thomas Tunnock Ltd (£000 and %), 51 Weeks Ending 22nd February 2003, 53 Weeks Ending 28th February 2004 and Year Ending 26th February 2005 Walkers SNACK FOODS LTD Profitability Table 72: Financial Results for Walkers Snack Foods Ltd (£000 and %), Years Ending 28th December 2002, 27th December 2003 and 25th December 2004 WEETABIX FOOD COMPANY — WEETABIX LTD Profitability Table 73: Financial Results for Weetabix Ltd (£000 and %), 53 Weeks Ending 3rd August 2002, Year Ending 31st July 2003 and 73 Weeks Ending 25th December 2004 OTHER, SMALLER MANUFACTURERS Highlander Snacks Ltd Percy Dalton's Famous Peanut Company Ltd Real Crisps — Sirhowy Valley Foods Ltd Seabrook Crisps Ltd Trigon Snacks Ltd 11. The Future MARKET FORECASTS Table 74: The Forecast Total UK Market for Sweet and Salty Snacks by Subsector by Value at Current Prices (£m at rsp), Years Ending May 2007-2011 Figure 4: The Forecast Total UK Market for Sweet and Salty Snacks by Value at Current Prices (£bn at rsp), Years Ending May 2007-2011 12. Consumer Confidence METHODOLOGY KEY FINDINGS THIS QUARTER THE WILLINGNESS TO BORROW Confidence Declines Again Table A: The Average Amount Consumers Are Willing to Borrow in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006 Signs That the Decline Could be Bottoming Out Table B: The Number of Adults Willing to Borrow in Order to Purchase Expensive Items (000 and %), May 2005, August 2005, November 2005, February 2006 and May 2006 THE WILLINGNESS TO SPEND FROM SAVINGS Sharp Decline in Spending from Savings Table C: The Average Amount Consumers Are Willing to Spend from Savings in Order to Purchase Expensive Items at Current and Constant November 2004 Prices (£ and £bn), May 2005, August 2005, November 2005, February 2006 and May 2006 Table D: The Proportion of Adults Without Any Savings (%), May 2005, August 2005, November 2005, February 2006 and May 2006 Borrowing Grows in Relative Importance Table E: The Average Amounts Adults are Confident Spending to Purchase Expensive Items (£ and %), May 2005, August 2005, November 2005, February 2006 and May 2006 13. Further Sources Associations Government Sources General Sources Major Manufacturers and Suppliers Trade Journals Bisnode Sources