Coca-Cola Consolidated, Inc. (COKE) Business Profile

What it does

Coca-Cola Consolidated distributes, markets and manufactures nonalcoholic beverages across territories in several states and the District of Columbia. Its chief executive officer is J. Frank Harrison, III.

The company handles both sparkling and still drinks. Sparkling drinks are carbonated, with Coca-Cola as its principal product. Still beverages include energy drinks, bottled water, ready-to-drink tea and coffee, enhanced water, juices and sports drinks. Its portfolio also includes drinks licensed from other beverage companies, such as Monster Energy and Dr Pepper.

Coca-Cola Consolidated sells bottled and canned drinks to retailers and supplies fountain products that retailers mix with water and serve in cups or glasses. Its customers include grocery and convenience stores, mass merchandisers, restaurants, schools and other on-premise locations. It also sells finished drinks to other Coca-Cola bottlers.

The company operates under agreements with The Coca-Cola Company and other brand owners. These agreements give it rights to distribute or manufacture specified drinks while placing conditions on how it uses the brands and what other beverages it can handle. Coca-Cola Consolidated also buys some finished drinks from other manufacturers rather than making everything it distributes. In FY2025, it employed approximately 17,000 people.

How it makes money

Coca-Cola Consolidated earns most of its sales and operating income from its Nonalcoholic Beverages segment. Its other operating segment, which includes the Red Classic subsidiaries, is reported within All Other. Beverage sales fall into bottle/can sales and other sales. The latter includes sales to other Coca-Cola bottlers, fountain syrup sales, transportation revenue and equipment maintenance revenue.

The company sells drinks it manufactures as well as finished products purchased from other suppliers. Most of its total bottle/can sales volume to retail customers consists of products of The Coca-Cola Company. It also sells products under agreements with other beverage companies. The portfolio spans sparkling drinks, including Coca-Cola and Sprite, and still products such as Monster Energy, BODYARMOR and Dasani.

Its preferred distribution method uses company-owned vehicles and warehouses to deliver to customers’ stores. It also uses third-party distributors, manufacturers or customers’ own supply chains for some deliveries. For qualifying bottle and can deliveries through these alternative routes, the company receives fees from brand partners that are reported in net sales but not in its reported volume metrics. Fees for certain post-mix deliveries are recorded as a reduction to cost of sales.

The company sets selling prices with factors such as brand strength, competition, input costs and channel in mind. Its agreements also require continuing payments and investment: it makes quarterly sub-bottling payments for certain exclusive Coca-Cola distribution rights and must meet minimum capital expenditure and volume requirements. Sales are typically higher when weather is warmer.

Customers and how it sells

Coca-Cola Consolidated operates in the United States across territories in several states and the District of Columbia. Its principal regions are the Carolinas, Mid-Atlantic, Mid-South and Mid-West. The company serves consumers in those territories and operates manufacturing plants and distribution centers across the regions.

Its customers include grocery stores, mass merchandisers, club stores, convenience stores and drug stores. It also sells to locations where drinks are typically consumed immediately, such as restaurants, schools, amusement parks and recreational facilities, as well as through vending outlets. Products can reach customers through the company’s own delivery network or through alternative routes using third parties, manufacturers or customers’ infrastructure.

Walmart Inc. accounted for 17.0% of total net sales in FY2025, and The Kroger Co. accounted for 12.0%. The Walmart measure includes sales associated with Walmart, Sam’s Club and Walmart Neighborhood Market; the Kroger measure includes Kroger and Harris Teeter. The loss of either customer could materially affect the company’s operating and financial results.

In addition to selling to retail and on-premise customers, Coca-Cola Consolidated supplies finished beverages to other U.S. Coca-Cola bottlers under its manufacturing arrangements.

Suppliers and costs

Coca-Cola Consolidated purchases concentrate from The Coca-Cola Company and other beverage companies, as well as finished drinks from outside manufacturers. Its cost of sales also includes raw materials, manufacturing labor and overhead, warehousing, and the cost of moving finished products from plants to distribution centers.

The company buys all plastic bottles used in its manufacturing plants from Southeastern Container and Western Container, manufacturing cooperatives it co-owns with other Coca-Cola bottlers. It buys all aluminum cans from domestic suppliers. Other inputs include sweetener, carbon dioxide, closures and packaging materials. A Coca-Cola bottlers’ procurement organization negotiates purchases for most of its raw materials other than concentrate.

The Coca-Cola Company’s pricing agreement determines the prices Coca-Cola Consolidated pays for certain concentrates and purchased still drinks. Under separate manufacturing arrangements, The Coca-Cola Company also establishes prices or elements of pricing formulas for certain finished goods traded between bottlers, limiting Coca-Cola Consolidated’s ability to negotiate those prices.

Aluminum, corn, PET resin and crude oil prices affect packaging, ingredients and fuel costs. The company participates in hedging and other risk-mitigation programs. In 2025, aluminum costs, including elevated import tariffs, reduced gross margin; a shift toward still drinks, which generally have lower gross margins than sparkling drinks, also contributed to the decline.

Competitive position

Coca-Cola Consolidated competes in sparkling and still nonalcoholic beverages. Its principal competitors include local bottlers of PepsiCo products and, in some regions, local bottlers of Dr Pepper products. The company also distributes and, under certain agreements, manufactures some Dr Pepper brands. Other competitors include bottlers and distributors of nationally advertised, regional and private-label beverages.

Competition takes place through pricing, new products, packaging, promotions, advertising, retail shelf space, customer service and frequency of distribution. The company’s ability to keep products in stock and obtain shelf space affects its results. Brand owners also advertise in its territories, although their beverage agreements generally do not require them to provide marketing funding.

Coca-Cola Consolidated holds exclusive rights for certain Coca-Cola brands in acquired territories, subject to continuing payments and contractual requirements. Its agreements restrict it from handling other beverages except for permitted brands or with Coca-Cola’s consent. The company also has a manufacturing and distribution network and a direct-store-delivery operation.

Our reading: Exclusive territorial rights provide a meaningful contractual defense for the covered brands, but they depend on meeting agreement requirements and do not prevent competition from other beverage brands. Our reading: The delivery network and access to advertised brands support its position with retailers, although rivals also compete on service, distribution and shelf space.

Growth opportunities

Net sales increased in 2025, primarily because of pricing actions. Standard physical case volume increased compared with the prior year. Sparkling volume was flat, while still volume increased in 2025.

The company’s growth efforts include its commercial strategy, pricing and package decisions, supply-chain optimization and changes to distribution routes. It aims to obtain shelf space and keep its products in stock across its range of brands and packages. It also invests in tools and technology for employees working with customers.

Product introductions and packaging changes are part of the company’s sales and marketing activity. The company plans 2026 launches including Coca-Cola Cherry Float and FLRT Energy Drink, along with enhanced glass offerings for Coca-Cola Original Taste and other brands. Its sales volume growth also depends on product innovation by The Coca-Cola Company and other beverage owners.

Coca-Cola Consolidated is consolidating nearby warehousing and distribution operations into new facilities where appropriate, with aims including greater capacity, expanded production capabilities and more automation. It invested in capital expenditures in 2025 and expects to continue making significant investments in fiscal year 2026.

The company is also using alternative distribution methods for selected products and customers. Its MyCoke digital platform is targeted to certain on-premise and small-store customers; the company expects it to enhance customer service and create more selling opportunities.

Structural risks

• Brand and agreement dependence. Failure to meet beverage-agreement requirements, including minimum capital expenditures or performance rates, could result in the loss of manufacturing or distribution rights. Brand owners’ marketing funding is generally not obligatory, and reduced support or product innovation could hurt sales and profitability.
• Input and supply costs. Plastic bottles, aluminum cans, sweetener and other inputs face price volatility and potential shortages. Fuel costs can affect delivery, while there are few limits on the prices beverage companies can charge for concentrate. The company also relies on outside suppliers for finished products.
• Customer concentration. Walmart Inc. and The Kroger Co. accounted for 17.0% and 12.0% of FY2025 net sales, respectively. Losing either customer could materially affect operating and financial results.
• Consumer and regulatory changes. Changing preferences, concerns about ingredients and packaging, or restrictions on beverage sales could reduce demand. Some states in the company’s territories have implemented or announced restrictions on using SNAP benefits for certain products.
• Technology and system governance. The company relies on shared Coca-Cola system technology and has limited authority to resolve some software issues. Interruptions or cyberattacks could disrupt operations; decisions by system governance entities may also differ from those the company would make alone.
• Control and transaction restrictions. The chief executive’s voting control limits other shareholders’ influence. Coca-Cola agreements also give The Coca-Cola Company approval rights over potential buyers of the distribution or manufacturing businesses.

Leadership

As of December 31, 2025, Chairman and CEO J. Frank Harrison, III controlled Class B shares representing a majority of the company’s total voting power. The concentration limits other shareholders’ ability to influence corporate matters.

Bottom line

Our reading

Coca-Cola Consolidated is a regional beverage bottling and distribution business built around rights to sell brands owned by others. Its territory rights and delivery network support the business, but those rights carry investment requirements and dependence on brand owners. Its exposure also includes concentrated retail customers, volatile input costs and the pricing and supply decisions of The Coca-Cola Company.