Coca-Cola Bottling Co. Consolidated Announces Signing of Letter of Intent with The Coca-Cola Company for Expansion of Franchise Territory

Tue Apr 16, 2013 7:41am EDT

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CHARLOTTE, N.C.--(Business Wire)--
Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) (the "Company") today
announced that it has signed a non-binding letter of intent with The Coca-Cola
Company to expand the Company`s franchise territory. The letter of intent
provides additional distribution rights for the Company in parts of Tennessee
and Kentucky which include major markets, Knoxville, TN and Lexington and
Louisville, KY. Coca-Cola Refreshments USA, Inc. ("CCR"), a wholly owned
subsidiary of The Coca-Cola Company, currently serves this territory. 

The proposed transaction for acquiring distribution rights to the expanded
territory will be accomplished by a sub-bottling arrangement with CCR under
which the Company would make ongoing payments to CCR in exchange for the
exclusive distribution rights in the territory. CCR would also transfer its
rights in the territory to distribute brands not owned by The Coca-Cola Company
to the Company as part of the transaction. In addition to territory rights, the
Company would also acquire distribution assets and certain working capital from
CCR relating to the expanded territory. The Company would not acquire any
production assets from CCR. The new territory will be covered by a new form of
comprehensive beverage agreement between the parties. 

J. Frank Harrison, III, Chairman and CEO, said, "We are very excited about this
growth opportunity for our Company, The Coca-Cola Company and the U.S. Coca-Cola
System. Working closely with The Coca-Cola Company and our U.S. bottling
partners, we believe that we are well positioned to help drive increased value
in the Coke System." 

Hank Flint, President and COO, added, "We have worked very collaboratively with
The Coca-Cola Company and other proposed expanding bottlers to create the
opportunity for U.S. System alignment and value creation for customers and
consumers. The proposed transaction provides us with a unique opportunity to
leverage our strengths as the local Coca-Cola bottler in the many communities we
serve." 

This proposed transaction with The Coca-Cola Company is subject to the parties
reaching definitive agreements by the end of 2013 with closing of the
transaction expected during the latter part of 2014. There is no assurance,
however, that the definitive agreements will be reached and the closing of the
proposed transaction will occur. The Company will file a report on Form 8-K with
the Securities and Exchange Commission regarding the proposed transaction that
will be available on the Commission`s web site at http://www.sec.gov and on the
Company`s web site at http://www.cokeconsolidated.com. 

Cautionary Information Regarding Forward-Looking Statements

Included in this news release and other information that we make publicly
available from time to time are forward-looking management comments and other
statements that reflect management`s current outlook for future periods.These
statements include, among others, statements regarding potential opportunities
for and our commitment and focus on profitably growing our business as well as
our plans for continuing to innovate and evolve packaging and marketing
strategies to respond to ever-changing consumer tastes.

These statements and expectations are based on currently available competitive,
financial and economic data along with our operating plans and are subject to
future events and uncertainties that could cause anticipated events not to occur
or actual results to differ materially from historical or anticipated
results.Among the events or uncertainties which could adversely affect future
periods are: lower than expected selling pricing resulting from increased
marketplace competition; changes in how significant customers market or promote
our products; changes in our top customer relationships; changes in public and
consumer preferences related to nonalcoholic beverages; unfavorable changes in
the general economy; miscalculation of our need for infrastructure investment;
our inability to meet requirements under beverage agreements; material changes
in the performance requirements for marketing funding support or our inability
to meet such requirements; decreases from historic levels of marketing funding
support; changes in The Coca-Cola Company`s and other beverage companies` levels
of advertising, marketing and spending on brand innovation; the inability of our
aluminum can or plastic bottle suppliers to meet our purchase requirements; our
inability to offset higher raw material costs with higher selling prices,
increased bottle/can sales volume or reduced expenses; consolidation of raw
material suppliers could impact our profitability; increased purchases of
finished goods subject us to incremental risks that could impact our
profitability; sustained increases in fuel costs or our inability to secure
adequate supplies of fuel; sustained increases in workers` compensation,
employment practices and vehicle accident claims costs; sustained increases in
the cost of employee benefits; product liability claims or product recalls;
technology failures; changes in interest rates; the impact of debt levels on
operating flexibility and access to capital and credit markets; adverse changes
in our credit rating (whether as a result of our operations or prospects or as a
result of those of The Coca-Cola Company or other bottlers in the Coca-Cola
system); changes in legal contingencies; legislative changes affecting our
distribution and packaging; adoption of significant product labeling or warning
requirements; additional taxes resulting from tax audits; natural disasters and
unfavorable weather; global climate change or legal or regulatory responses to
such change; issues surrounding labor relations; bottler system disputes; our
use of estimates and assumptions; changes in accounting standards; impact of
obesity and health concerns on product demand; public policy challenges
regarding the sale of soft drinks in schools; the impact of volatility in the
financial markets on access to the credit markets; the impact of acquisitions or
dispositions of bottlers by their franchisors; and the concentration of our
capital stock ownership.The forward-looking statements in this news release
should be read in conjunction with the more detailed descriptions of the above
factors located in our Annual Report on Form 10-K for the year ended December
30, 2012 under Part I, Item 1A "Risk Factors" as well as those additional
factors we may describe from time to time in other filings with the Securities
and Exchange Commission.Except as required by law, the Company undertakes no
obligation to update or revise any forward-looking statements contained in this
release as a result of new information or future events or developments.

-Enjoy Coca-Cola-

Coca-Cola Bottling Co. Consolidated
Media Contact:
Lauren C. Steele, 704-557-4551
Senior VP - Corporate Affairs
or
Investor Contact:
James E. Harris, 704-557-4582
Senior VP - Shared Services & CFO 

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