Coca-Cola Consolidated, Inc.

What they do

The company manufactures and distributes sparkling and still nonalcoholic beverages, with roughly 85% of bottle/can sales volume to retail customers consisting of products of The Coca-Cola Company. Sales are split between bottle/can sales (plastic bottles and aluminum cans) and other sales including post-mix fountain, sales to other Coca-Cola bottlers, transportation and equipment maintenance. It holds exclusive distribution rights under comprehensive beverage agreements with The Coca-Cola Company and Coca-Cola Refreshments USA, and also distributes brands for Monster Energy and Keurig Dr Pepper.

Revenue drivers

• Sparkling bottle/can — Carbonated soft drinks led by Coca-Cola, plus zero-sugar and flavor offerings; generated $1,184.3 million in Q2 2026, up 9.7%, the largest beverage sales line.
• Still bottle/can — Energy, water, tea, coffee, juice and sports drinks including Powerade, smartwater, Core Power, Dasani and Monster; generated $697.9 million in Q2 2026, up 11.5%.
• Other sales — Post-mix fountain syrup sales, sales to other Coca-Cola bottlers, transportation and equipment maintenance revenue, disclosed as a separate sales category alongside bottle/can sales.

Recent performance

Second quarter 2026 net sales rose 10.6% to $2,052.4 million and volume grew 7.6%, while first half net sales rose 13.5% to $3,899.1 million. Gross profit increased 4.8% to $778.4 million in Q2, but gross margin fell 210 basis points to 37.9%, and income from operations was flat at $271.3 million. First half income from operations rose 10.2% to $508.9 million. Full year 2025 revenue was $7.23 billion with net income of $570.6 million.

Strategy

Management cited volume growth of 7.6% and revenue growth of 10.6% in Q2 2026, attributing demand strength to America250 and the FIFA World Cup. The company said it remains focused on improving balance sheet strength and paid down $275 million of debt in the first half of 2026. It continues to operate under the CBA, which requires minimum ongoing capital expenditures and minimum volume requirements. On November 7, 2025 it repurchased all of The Coca-Cola Company's shares in the company for $2.40 billion, funded with cash on hand and a bridge-facility term loan.

Risks

• Raw material cost volatility — Plastic bottles, aluminum cans, PET resin, carbon dioxide and high-fructose corn syrup are subject to significant price volatility, tariffs and supply constraints, and there are few limits on concentrate prices charged by The Coca-Cola Company.
• Fuel and freight costs — The company uses significant amounts of fuel for its delivery fleet and relies on internal and external freight services, exposing it to fuel price volatility and delivery timing disruption.
• Dependence on The Coca-Cola Company — Approximately 85% of bottle/can sales volume is Coca-Cola Company products; the CBA grants exclusive territory rights but includes termination and default rights, minimum capital expenditure and volume requirements, and approval rights over a sale of the company.
• Leverage and negative equity — As of July 3, 2026 total liabilities were $4.93 billion against $4.43 billion of assets and shareholder equity was negative $500.1 million, with $2.41 billion of long-term debt.

Outlook

Management highlighted strong second quarter demand and said it remained focused on strengthening the balance sheet, having paid down $275 million of debt in the first half of 2026. The company noted that the timing of the Fourth of July holiday contributed approximately 1.0% to second quarter volume. No specific full-year financial guidance was disclosed in the provided excerpts.