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The Wrigley

Company

Annual Report

Cool to Go!

Introduction Wrigley Annual 06 Wrigley Annual 06 Introduction 0

2005 Financial Overview

In thousands of dollars and shares, except per share amounts and stockholders of record.

Net Sales $ 4,159,306 $ 3,648,

Net Earnings $ 517,252 $ 492,

Per Share of Common Stock (diluted) $ 2.29 $ 2.

Dividends Paid $ 241,669 $ 207,

Per Share of Common Stock $ 1.075 $.

Additions to Property, Plant and Equipment $ 281,769 $ 220,

Stockholders’ Equityw $ 2,214,422 $ 2,178,

Return on Average Equity 23.5% 24.7%

Stockholders of Record at Close of Year 41,105 41,

Dilutive Shares Outstanding 225,827 225,

2005 Financial Highlights

The Spirit of Innovation,

has made Wrigley one of the world’s best known and best loved companies and continues today, with exciting new products, new markets and new ideas. It’s the Wrigley Way.^1 Since its founding in 1891, the Wrigley Company has been led by four generations of the Wrigley family, each of which has made their mark on the organization. Across these generations there has been a continuous commitment to providing the world’s highest-quality chewing gum and confectionery products that are both great tasting, and make life a little more fun. It has been over 110 years since Wrigley introduced its first two products, Juicy Fruit and Wrigley’s Spearmint gums. Today, Wrigley brands are sold in over 180 countries and its portfolio of products includes dozens of innovative brands that provide consumers with a variety of benefits, including breath freshening, tooth whitening and vitamin delivery. Brands like Doublemint, Big Red, Winterfresh, Extra, Eclipse, Freedent, Hubba Bubba, Orbit and Excel continue generating excitement in the gum category while at the same time Wrigley has created new confections under these well- loved brands including mints, breath strips and candies. In addition to internal product development, the Wrigley Company is diversifying into new kinds of confections through acquisition. Brands such as Altoids, Life Savers, Creme Savers, Pim Pom and Solano provide consumers with a variety of fun, delicious products in numerous formats and flavors. From mints to candies to lollipops, these products help Wrigley reach consumers of all ages around the world and are a won- derful complement to Wrigley’s great-tasting gum products.^2

Excellence and

Quality

for 115 Years!

excellence

500,00 450,000 400, $ 492, $ 445, 2005 2004 2003

Net Earning

In thousands $ 517, Wrigley Annual 06 0 4,000,000 3,500,000 3,000, $ 3,648, $ 3,069,

Net Sales

$ 4,159,306 2005 In thousands 2004 2003

06 Introduction Wrigley Annual 06 Wrigley Annual 06 Introduction 0 Realigning to support our future, our plans for continued expansion in confections necessitate the periodic review of our total business, including our processes, systems and structure. To this end, we realigned our marketing and innovation teams around product benefit platforms in a way that enhances cross-functional and cross-regional collaboration. This has resulted in more rapid knowledge transfer of consumer needs, marketplace trends, and new opportunities for our business. An initiative that supports our long-term goals is the completion of our new factory in Silao, Mexico, which will supply the Latin American marketplace as our local business grows. Our ability to manufacture within the region will significantly advance our opportunities in Latin America, a geography where Wrigley has been Healthy Growth The environment in which we do business has always been competitive. Healthy competition, new product news and increased brand support drive growth in the overall gum category, the fastest growing segment of confections. Competition is also healthy for Wrigley. As a leader, it sharpens our edge and fuels our drive to win. And we are winning. In the United States, our biggest single marketplace, we continue to increase our presence and reach in retail gum sales with business that is more than two and a half times the size of our nearest competitor. Despite our strong worldwide presence, we are far from complacent. We track competitive movements with vigilance, and we are fast to adapt to consumer, retail and competitive trends with strategic responses to opportunities and challenges. The key for us when executing in the marketplace is to focus on healthy growth, building the equity of our brands and developing a lasting presence in every geography where we compete. We do not look for trendy gimmicks or quick fixes. Short-term strategies are not in the long-term interests of our company, our brands or our stockholders. Diversity Today, that reputation extends beyond gum and across a broadening array of Wrigley confections including mints, candies and lollipops. We are committed to weaving Wrigley brands into the fabric of everyday life around the world and continuing to delight consumers for generations to come. In confections, consumers want to be surprised and delighted again and again. Wrigley meets these consumer desires with innovative new products and brand extensions across gum, mints and candies. This year’s opening of the Global Innovation Center will continue to feed the spark of creativity and fun that helps bring great new products to consumers around the world. Wrigley brands are available in more than 180 countries, representing approximately 97 percent of the global population. The world in which our millions of consumers live is very diverse, but fundamental requirements like quality and great taste span borders and oceans. Tailoring, benefits, flavors, packaging and consumer communication to meet local needs makes Wrigley brands even more meaningful and relevant.^4 underrepresented. Although competition has enjoyed a significant foothold in this marketplace, we have made solid progress this past year and now represent just over 9 percent of retail gum sales in Mexico, an increase of 30 percent over the prior year. All of these changes ultimately enable us to deliver products with more meaningful benefits and greater value to the consumer, improve retail trade relationships, and make us a more efficient, agile organization. Building a Home for Creativity and Inspiration Innovation is the lifeblood of our Company, it impacts everything we do and helps us work faster and smarter. Our investment in innovation has led to a dramatic increase in the percentage of our sales that come from new products over the last several years. But, in our view, the best measure of successful new product development is not the quantity but the quality. At Wrigley, building brands isn’t about rushing into the marketplace with as many concepts as possible. It’s about introducing quality products that delight consumers and can thrive for generations. We aren’t looking for the newest fad, but for products that will deliver superior quality and value to consumers and will become part of the fabric of everyday life around the world. 06 Candystand Early this year the Wm. Wrigley Jr. Company relaunched Candystand.com, the popular free entertainment Web site today. Candystand.com has been overhauled to add popular Wrigley brands such as Big Red, Juicy Fruit, Winterfresh, Doublemint, Orbit and Eclipse to the site’s existing stable of Life Savers and Creme Savers products, marking the first time that all of Wrigley’s US brands will be housed in one web site. The redesign also improves Candystand.com’s offerings by delivering a streamlined user-experience and loads of new and engaging content. Candystand.com, which was acquired by the Wrigley Company in June 2005, is one of the most popular and heavily trafficked entertainment destinations on the Web, visited by more than 4 million unique consumers each month. Known for its award-winning gaming content, Candystand.com has featured some of the most popular sports, arcade, card, puzzle and multi player games freely available online since its launch in 1997. Candystand.com games combine the outstanding graphics and engaging nature of popular online games without the price-tag often associated with content of their quality. “We’re very excited to reintroduce our new and improved Candystand.com to our millions of loyal users,” said Scott Tannen, leader of Wrigley’s Digital Marketing group.^6

0 Introduction Wrigley Annual 06 Wrigley Annual 06 0

Are you Cool to Go?

We are proud to introduce a new product stemming from Wrigley Quality called Cool to Go! Throughout the day, everyone goes through different stages, requiring many varied actions. Children, teens, working adults, and many more can enjoy our products in unique ways. So what is Cool to Go? It is a gum multi pack containing one stick of each of our most popular and varied brands. For the first time, all in one place you can have Hubba Bubba, Doublemint, Big Red, and Juicy Fruit. In one swipe Wrigley’s Cool to Go packs offer multi-flavor variety and convenience. With a mere 3 dimes you can have in your pocket four flavors, four options, four pick-me-ups, because you never know what life will bring. We are bringing customers easy choices at the check-out. No need to worry about your gum mood or friends’ preferences, now you can have it all. Everyone will love Cool to Go. Give Cool to Go as a gift, keep it yourself, or share a stick. Gum is good fun all around. Simply place the Cool to Go pack in your pocket, remove when needed and enjoy. There are no limits to the possibilities. Go now and enjoy! Hubba Bubba is a great tasting bubble gum with the most outrageous flavor that you can actually see! Bring back those fun loving pink bubbles and chew away. Relax, the kid in you can finally come out! Doublemint is a distinctive mint flavor for many people. Enjoy the refreshing taste of Doublemint gum, with the unique, minty flavor that you can’t get anywhere else. Count on Doublemint for delicious mint taste and experience the one-of- 0 Cool to Go! Wrigley Annual 06 0 a-kind brand that is for one-of-a-kind individuals. Juicy Fruit is gotta have sweet, gotta have Juicy Fruit. You want, you need, you gotta have more sweet! Only Juicy Fruit brings you one-of-a-kind flavor that satisfies your cravings for something sweet. Sweeeeet. Big Red means you are looking good and feeling psyched. You always bring Big Red. Why? The bold cinnamon taste of Big Red keeps your breath fresh. Bigger and bolder than ever, Big Red is there to help you make the scene. Its bold, cinnamon taste helps keep your breath fresh all the while.^7 Where to Buy? Currently we are producing and shipping Cool to Go. Expect to see packs hitting check-out aisles across America. Cool to Go can be found at your local drugstore, gas station, market, and other fine establishments. Let your mouth Celebrate! Marketing In an effort to promote our products the Wrigley Company has selected The Bravo Group, a Young & Rubicam Brands company, as agency of record for Hispanic creative and promotional marketing efforts in the United States. The selection of Bravo comes after a decision to review and consolidate all U.S. Hispanic creative and promotional marketing initiatives for the Wrigley brands and the new confectionery brands recently acquired from Kraft. “The Hispanic marketplace is expanding daily and plays a significant role in the gum and candy business. We believe with the assistance of The Bravo Group, Hispanic consumers will make more meaningful connections with all brands included in our new, larger confectionery footprint,” said Paul Chibe, Senior Marketing Director for Wrigley. “This is an important step in our effort to develop a comprehensive multicultural strategy.”

Did you know that Wrigley

brand gums are enjoyed in over

150 countries all over the world?

Also included in the review process that began in July 2006 was Lapiz Integrated Hispanic Marketing, Wrigley’s previous Hispanic marketing agency of record. “We would like to thank Lapiz for their valuable contributions,” said Chibe. “During the past five years they have delivered excellent creative and increased our understanding of the Latino consumer.” “We are proud and excited to work with the Wm. Wrigley Jr. Company, “said Eddie Gonzalez, Chairman and CEO, The Bravo Group. “We look forward to applying our unique insights to their world-class portfolio of products and innovations.”^8 Cool to Go!

Wrigley Annual 06 Wrigley Annual 06

Operating Income

2005 2004 Gross Profit 54.2% 55.7% Selling, General and Administrative: Advertising (11.0%) (12.0%) Merchandising and Promotion/Other (5.7%) (6.0%) Selling and Other Marketing (^) (10.2%) (9.7%) General and Administrative (8.6%) (8.3%) Total Selling, General and Administrative (35.6%) (36.0%) Operating Income 18.7% 19.7%

Quarterly Consolidated Results

In thousands of dollars except per share amounts Net Sales Gross Profit Net Earnings Earnings Per Share 2005 First Quarter $ 950,390 $ 537,633 $ 131,014 $ 0. Second Quarter 1,040,184 594,371 162,444 0. Third Quarter 1,062,388 570,266 129,718 0. Fourth Quarter 1,106,344 553,634 94,076 0. Total $ 4,159,306 $ 2,255,904 $ 517,252 $ 2. 2004 First Quarter $ 812,151 $ 457,046 $110,983 $ 0. Second Quarter 957,906 538,790 139,205 0. Third Quarter 916,675 507,525 125,776 0. Fourth Quarter 961,860 530,014 116,990 0. Total $ 3,648,592 $ 2,033,375 $ 492,954 $ 2.

Results of Operations

Net Sales 2005 vs. 2004 (In thousands of dollars except percentage amounts) Consolidated net sales for 2005 increased $510,714 or 14% from 2004. Higher worldwide shipments increased net sales approximately 13%. The recent acquisition of the new confectionery brands increased net sales 5%. First quarter 2005 net sales of Boomer, Solano, Pim Pom and Ta Ta (Joyco Group products), which were not included in 2004 first quarter results, contributed approximately 1% of the net sales growth. The remaining volume growth, across all regions, increased net sales 7%. Translation of stronger foreign currencies, primarily in Europe, to the weaker U.S. dollar increased net sales by approximately 1%. New products accounted for approximately 17% of net sales in 2005. North America 2005 net sales increased $255,353 or 20% from 2004. Higher shipment volume in the U.S. and Canada increased net sales by 19%. In the U.S., volume growth was driven by the new confectionery brands, which contributed 14% to net sales. The remaining volume growth, which contributed 5% to net sales, was led by Orbit, Orbit White, and Extra in the U.S. and Excel and Extra in Canada. North America net sales increased approximately 1% as a result of translation of the stronger Canadian dollar to a weaker U.S. dollar.

Selected Financial Data

Management of the Wm. Wrigley Jr. Company is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in the Securities Exchange Act of 1934 Rule 13a-15(f). Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2005 as required by the Securities Exchange Act of 1934 Rule 13a-15(c). In making this assessment, we used the criteria set forth in the framework in Internal Control–Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control–Integrated Framework, management concluded that our internal control over financial reporting was effective as of December 31, 2005. Management’s assessment of the effectiveness of our internal control over financial reporting as of December 31, 2005 has been audited by Ernst & Young LLP, an independent registered public accounting firm. W. M. Wrigley Company, Chicago, Illinois February 3, 2006.^4

Management’s Report on Internal Control

Over Financial Reporting

Operating Data

In thousands of dollars and shares, except percent and per share amounts 2005 2004 Net Sales $ 4,159,306 $ 3,648, Cost of Sales $ 1,863,179 $ 1,615, Income Taxes $ 237,408 $ 227, Net Earnings (1) $ 517,252 $ 492, Per Share of Common Stock (diluted) 2.29 2. Dividends Paid $ 241,669 $ 207, Per Share of Common Stock $ 1.075 $. As a Percent of Net Earnings 47% 42% Dividends Declared Per Share of Common Stock 1.12. Average Shares Outstanding 224,771 224, 12 Finances Finances 1 

Textual and Financial Content References 1 http://www.wrigley.com 2 http://www.wrigley.com/about 3 www.wrigley.com/career 4 The 2005 Wrigley Annual. http://media.corporate-ir.net/media_files/NYS/WWY/reports/2005/annual_review2005/html2/default.htm 5 http://www.wrigley.com/wrigley/f100.htm 6 http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=WWY&script=410&layout=0&item_id= 7 http://www.wrigley.com/product 8 http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=WWY&script=410&layout=0&item_id= Picture Credits p5, p10 The 2005 Wrigley Annual. http://media.corporate-ir.net/media_files/NYS/WWY/reports/2005/annual_review2005/html2/default.htm This project was created by Holly Ann Schmidt :: Fall 2006 :: Typography II :: Professor DiGioia Body copy was set in Abadi Condensed Light at 9.5/12.5 pt. Headlines were set in VAG rounded.