Coca-Cola Consolidated, Inc. (COKE)

Coca-Cola Consolidated reported on 4 November 2026 that third-quarter net sales rose 5.4 percent to $1,989.5 million 1. Income from operations was $271.6 million, up 10.1 percent 1.

Gross margin fell 80 basis points to 38.8 percent 1. The company said aluminum and fuel costs have grown faster than its price increases 1.

Volume grew 1.4 percent in the quarter 1. The company said zero-sugar and flavored sparkling drinks led sparkling growth, while energy and protein products drove still drinks 1.

The chief executive said that through October the company had cut its debt by $450 million 1. That debt largely came from the $2.4 billion repurchase of The Coca-Cola Company's stake on 7 November 2025 4.

The company traces its bottling business to 1902 and was incorporated in 1980 3. It is now the largest Coca-Cola bottler in the United States 3.

A series of transactions completed in October 2017 reshaped it 3. The company acquired and exchanged distribution territories and manufacturing plants with Coca-Cola Refreshments USA, a subsidiary of The Coca-Cola Company 3. In return it makes quarterly payments for exclusive rights in the territories it acquired 3.

On 4 March 2025 the company announced that its board had approved a 10-for-1 forward stock split of its common and Class B shares 3.

In 2025 net sales rose 4.8 percent to $7.23 billion, mostly from annual pricing actions, while case volume grew only 0.3 percent 3. One fewer selling day than in 2024 held the volume comparison back 3.

Gross margin slipped 20 basis points to 39.7 percent in 2025 3. Aluminum costs, including import tariffs, rose, and sales shifted toward still drinks, which usually earn lower gross margins than sparkling drinks 3.

Income from operations rose $30.3 million to $950.7 million, but net income fell $62.5 million to $570.6 million 3. The company pointed to non-cash changes in the fair value of a contingent payment liability tied to the territory deals, and to higher interest expense 3.

On 7 November 2025 the company repurchased all the common shares held by an indirect subsidiary of The Coca-Cola Company, for about $2.4 billion 4. It paid with cash and a $1.2 billion bridge loan, and the deal ended a 2009 stock rights agreement among the parties 4.

On 8 December 2025 it borrowed $1.35 billion under new term loans to refinance the bridge loan 5.

What it sells and to whom

Coca-Cola Consolidated makes and distributes drinks in 14 states and the District of Columbia 3. About 85 percent of its bottle and can volume to retail customers is products of The Coca-Cola Company, with Monster Energy and Dr Pepper among the rest 3.

Sparkling drinks, led by Coca-Cola, brought in $3,405.0 million in the first nine months of 2026, up 9.9 percent 13. Still drinks, such as energy drinks, water, tea, coffee and sports drinks, brought in $1,990.2 million, up 11.9 percent 13.

Volume rose 7.1 percent in the first nine months of 2026, and 5.1 percent on the company's adjusted basis 1. The first quarter had six extra days and the fourth will have six fewer 1.

Two customers matter most: Walmart took 21 percent of bottle and can volume in 2025 and Kroger 15 percent, together 29 percent of net sales 3.

New items include Sprite + Tea, POWERade Powerwater and the relaunch of Mr. Pibb 3. The company said it will launch Coca-Cola Cherry Float and FLRT Energy Drink during 2026 3.

Plants, trucks and people

It runs 10 manufacturing plants and 60 distribution centers, owning all the plants and 47 of the centers 3. Plants ran at about 84 percent of capacity in the year ended 31 December 2025 3.

Its four regions are the Carolinas, Mid-Atlantic, Mid-South and Mid-West, serving about 60 million consumers 3. The biggest site is a 650,000 square foot combined plant and distribution center in Charlotte 3. A new 430,000 square foot automated distribution center in Columbus, Ohio began operating in early 2025 3.

At the end of 2025 it employed about 17,000 people, called teammates, and about 15 percent of the workforce is covered by union contracts 3.

J Frank Harrison III has been chief executive since 1994 and chairman since 1996 3. David Katz has been president and chief operating officer since December 2018 3. Matthew Blickley is chief financial officer 3.

Rivals and pressures

Its principal competitors are local bottlers of PepsiCo products and, in some regions, local bottlers of Dr Pepper products 3.

Costs are the main pressure: the company said higher aluminum costs, a challenging transportation market and increased fuel costs pressured its gross margin 1. It also relies on The Coca-Cola Company, which sets prices for some finished goods it trades with other bottlers and holds approval rights over a sale of the company 3.

The umbrella, in words

Beyond Coca-Cola, its range includes Sprite, Fanta, POWERade, BODYARMOR, Topo Chico, Dasani, fairlife and Core Power from The Coca-Cola Company 3. It also carries Monster Energy, Dr Pepper and Sundrop under licence from other companies 3.

Its operating subsidiaries include Red Classic Services, LLC, which sits in the small All Other segment, and CCBCC Operations, LLC, successor to Piedmont Coca-Cola Bottling Partnership 3.

It is a shareholder of South Atlantic Canners, Inc., a manufacturing cooperative in Bishopville, South Carolina, and uses part of the 261,000 square foot plant it owns 3. It co-owns the plastic bottle cooperatives Southeastern Container and Western Container with other Coca-Cola bottlers 3. It has agreed to take 16.0 million cases a year from the Bishopville cooperative through June 2034 2.

J Frank Harrison III, the chairman and chief executive, controlled 10,043,940 Class B shares as of 31 December 2025, about 78 percent of the total voting power 3. Each Class B share carries 20 votes and each common share one 3.

The Coca-Cola Company no longer holds common shares: the 18,835,460 shares repurchased from its subsidiary were retired 2.

The company expects capital spending of about $300 million in fiscal 2026, and said it invested about $219 million in the first nine months 1.

It said the fourth quarter of 2026 will have six fewer days than the fourth quarter of 2025, and that the full years have the same number of days 1.

The Shelby Report said in May 2026 that the company is investing $35 million in a glass bottle line in Indianapolis 6. The project is anticipated to begin in late 2026 and add 15 to 20 full-time jobs 6. The chief executive named the line in the November 2026 results release 1.

Its 2026 brand plans include Coca-Cola Cherry Float, FLRT Energy Drink and enhanced glass offerings of Coca-Cola Original Taste and other brands 3.

Debt is being paid down: total debt was $2,513,934 thousand on 2 October 2026 against $2,786,009 thousand on 31 December 2025 2. The five-year term loan stood at $175 million, down from $450 million 2.

The $100 million of 3.93 percent senior notes due 10 October 2026 are listed as the current portion of debt 2.