Profile: Coca Cola Bottling Co Consolidated (COKE.O)
10 Mar 2014
Coca Cola Bottling Co Consolidated, formerly Coca-Cola Bottling Co. Consolidated, incorporated on April 8, 1980, produces, markets and distributes nonalcoholic beverages, primarily products of The Coca-Cola Company, Atlanta, Georgia (The Coca-Cola Company), which include beverage brands in the world. The Company is an independent Coca-Cola bottler in the United States. As of December 30, 2012, The Coca-Cola Company had a 34.8% interest in the Company. Sales of sparkling beverages were approximately 82% of total net sales during the fiscal year ended December 30, 2012 (fiscal 2012). Sales of still beverages were approximately 18% of total net sales during fiscal 2012. The Company holds Cola Beverage Agreements and Allied Beverage Agreements, under which it produces, distributes and markets, in certain regions, sparkling beverage products of The Coca-Cola Company. The Company also holds Still Beverage Agreements, under which it distributes and markets in certain regions still beverages of The Coca-Cola Company, such as POWERade, vitaminwater and Minute Maid Juices To Go and produces, distributes and markets Dasani water products.
The Company holds agreements to produce, distribute and market Dr Pepper in some of its regions. The Company also distributes and markets various other products, including Monster Energy products and Sundrop, in one or more of the Company’s regions under agreements with the companies that hold and license the use of trademarks for these beverages. In addition, the Company produces beverages for other Coca-Cola bottlers. In some instances, the Company distributes beverages without a written agreement. The Company’s principal sparkling beverage is Coca-Cola. In total, products of The Coca-Cola Company accounted for approximately 88% of the Company’s bottle/can volume to retail customers during fiscal 2012. The Company offers a range of flavors. The Company has developed and begun to market and distribute certain products, which it owns. These products include Country Breeze tea, Tum-E Yummies, a vitamin-C enhanced flavored drink, Bean & Body coffee beverage and Fuel in a Bottle power shots. The Company markets and sells these products nationally. The Company holds contracts with The Coca-Cola Company, which entitle the Company to produce, market and distribute in its territory The Coca-Cola Company’s nonalcoholic beverages in bottles, cans and five gallon pressurized pre-mix containers. The Company has similar arrangements with Dr Pepper Snapple Group, Inc. and other beverage companies.
The Company purchases concentrates from The Coca-Cola Company and produces, markets and distributes its principal sparkling beverage products within its territories under two forms of beverage agreements with The Coca-Cola Company: beverage agreements that cover sparkling beverages bearing the trademark Coca-Cola or Coke (the Coca-Cola Trademark Beverages and Cola Beverage Agreements), and beverage agreements that cover other sparkling beverages of The Coca-Cola Company. The Company is a party to Cola Beverage Agreements and Allied Beverage Agreements for various specified territories. The Company purchases and distributes certain still beverages, such as sports drinks and juice drinks from The Coca-Cola Company, or its designees or joint ventures, and produces, markets and distributes Dasani water products. The Still Beverage Agreements contain provisions that are similar to the Cola and Allied Beverage Agreements with respect to authorized containers, planning, quality control, transfer restrictions, and related matters but have certain significant differences from the Cola and Allied Beverage Agreements. The Company distributes fruit and vegetable juice beverages of the Campbell Soup Company (Campbell) under an interim subdistribution agreement with The Coca-Cola Company. The Company purchases Campbell beverages from a subsidiary of Campbell under a separate purchase agreement.
The Company also sells Coca-Cola and other post-mix products of The Coca-Cola Company on a non-exclusive basis. In addition, the Company produces some products for sale to other Coca-Cola bottlers and Coca-Cola Refreshments USA, Inc. (CCR). As of December 30, 2012, the Company held bottling rights from The Coca-Cola Company covering the North Carolina, South Carolina and West Virginia, and portions of Alabama, Mississippi, Tennessee, Kentucky, Virginia, Pennsylvania, Georgia and Florida. Its products are sold and distributed directly to retail stores and other outlets, including food markets, institutional accounts and vending machine outlets.
The Company competes with Pepsi-Cola, Dr Pepper, Royal Crown and 7-Up.
Coca Cola Bottling Co Consolidated
4100 Coca-Cola Plaza
CHARLOTTE NC 28211