15 The Hershey Company | 2021 ESG Report The Big Picture Our Company Cocoa Responsible Sourcing and Human Rights Environment Our People Youth Community About This Report Our Company Nutrition, Innovation, Choice and Transparency N I 2 W 0 E 2 Hershey was built on For consumers who want to cut their sugar In addition, we helped develop an industry- NDOT’S 1 making great-tasting intake, we expanded the zero sugar product wide technology for U.S. products called HOMESTYLE offerings in 2021, and also acquired Lily’s SmartLabel™. With a simple scan of a QR code PRETZEL snacks accessible. Sweets, LLC (“Lily’s”), a maker of no sugar on the product package, consumers are taken snacks added snacking options, including dark and to the Hershey SmartLabel™ page and provided In the more than 125 years we’ve been in milk chocolate style bars, baking chips, peanut with a wide range of product information business, tastes have changed. We started butter cups and other confection products. In including information on nutrition, ingredients by making chocolate available to all. Today, addition, our investment in Bonumose will help and their definitions, allergens and whether consumers have a variety of snacking needs, us champion the use of innovative sugars in the product is gluten-free. including some who are seeking balanced, our snacks. permissible snacking options. Beyond offering snacks with smaller portion We’re stepping up with a full spectrum of sizes, such as Thins, our research inspired us to snacking opportunities by offering more better- make new moments with the up to 40 million for-you (BFY) options that help those who love U.S. adults who are looking for chocolate our brands enjoy snacks they love while still products that are organic, plant-based or meeting their health and wellness goals. made with independently verified cocoa. To meet these preferences, we launched We’ll always provide classic Hershey treats for organic REESE’S Peanut Butter Cups, organic moments of indulgence like our HERSHEY’S HERSHEY’S bars and are exploring plant-based bars and REESE’S Peanut Butter Cups, but versions of our HERSHEY’S brand products. N I 2 we’re also focusing on creating products that Beyond innovation in formulations, we are W 0 E 2 meet a range of consumers’ needs and snacking focused on improving transparency in ways that N 1 occasions throughout the day, including support consumer awareness and choice. We LILY’S popcorn, puffs and pretzels (3Ps). maintain a Food Claims Review Council in the Sweets As part of our focus on 3Ps, we added the U.S. that acts as a collaborative, cross-functional fastest growing pretzel brand in the U.S. to team of regulatory, nutrition and legal partners. The Hershey Company when we finalized our The Council provides guidance on product acquisitions of Dot’s Pretzels, LLC (“Dot’s”) and claims, labeling, marketing and advertising early Pretzels Inc. (“Pretzels”) in December 2021. in the innovation process to ensure products are Together, Dot’s and Pretzels manufacture and compliant and address consumer needs. distribute filled, gluten-free and seasoned pretzels and other salty snack food products to retailers and distributors in the U.S.