Coca-Cola Consolidated Annual Report 2005

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FY2005 Annual Report · Coca-Cola Consolidated

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oca-Cola Bottling Co. Consolidated is the

second largest Coca-Cola bottler in the

United States. We are a leader in the manufac-

turing, marketing and distribution of soft drinks.

With corporate oﬃ ces in Charlotte, N.C., we have

operations in 11 states, primarily in the Southeast.

Th e Company has one of the highest per capita

soft drink consumption rates in the world and

manages bottling territories with a consumer base

of 18.6 million people. Coca-Cola Bottling Co.

Consolidated is listed on the NASDAQ National

Market System under the symbol COKE.

This annual report is printed on recycled paper.

Financial Summary *

In Thousands

Fiscal Year

(Except Per Share Data)

2005

2004

2003

Net sales

Gross margin

Income before income taxes

Income taxes

Net income

$1,380,172 $1,267,227 $1,220,403

627,763

607,761

591,323

38,752

15,801

22,951

36,550

14,702

21,848

Basic net income per share

Diluted net income per share

2.53 $

2.41 $

38,060

7,357

30,703

3.40

* The financial information in this Summary Annual Report was derived from and should be

read in conjunction with the audited consolidated financial statements and notes thereto and
management's discussion and analysis of the financial condition and results of operations,
which are included in the Company's Annual Report on Form 10-K for the fiscal year ended
January 1, 2006. The fiscal years presented are the 53-week period ended January 2, 2005,
and the 52-week periods ended January 1, 2006, and December 28, 2003.

This Summary Annual Report includes forward-looking statements that reflect

management's current outlook for future periods. These statements relate to,

among other things, new products coming online in 2006, new packaging

innovations, our focus on numerous initiatives to redesign work flows to

improve the productivity of our people and assets, and the rollout of our

redesigned pre-sell route delivery system. These forward-looking statements are

subject to risks and uncertainties that could cause the anticipated events not

to occur or actual results to differ materially from historical results or manage-

ment's anticipated results. The forward-looking statements in this Summary

Annual Report should be read in conjunction with the Risk Factors section and

the detailed cautionary information regarding forward-looking statements in

the Company's Annual Report on Form 10-K for the fiscal year ended

January 1, 2006. The Company undertakes no obligation to

publicly update or revise any forward-looking statements.

Make. Sell. Deliver.

L e t t e r t o S h a r e h o l d e r s

ear Shareholders:

We are pleased to tell you that your

Company reported strong volume and

share growth as well as solid earnings

for 2005. Our results are even more

encouraging given several extraordinary

challenges we faced during the year.

These challenges included an unprec-

edented increase in packaging costs,

soaring fuel prices and the devastation

of a portion of our territory by

Hurricane Katrina.

The Company earned $23.0 million

in 2005, or $2.53 per share, as compared

to $21.8 million, or $2.41 per share, the

previous year. The Company’s fiscal

year in 2005 had 52 selling weeks

versus 53 selling weeks in 2004.

Reversing recent trends, bottle/

can volume grew 4 percent during

2005. In addition to introducing a

number of new products and pack-

ages, including Vault, Coke Zero

and Dasani flavors, the Company also

realized gains in market share.

The Company’s 2005 results were

impacted by several one-time events,

including the favorable after-tax impact

Coca-Cola and its products have
a big presence at the new Charlotte
Bobcats Arena.

The scoreboard at the Charlotte
Bobcats Arena reminds thirsty fans
to "Obey Your Thirst."

of $.46 per share due to the settle-

ment of a class action lawsuit related

New products

such as Vault, Full

to high fructose corn syrup. This was partially

Throttle, Coke Zero, diet

offset by financing transaction costs of $.11 per

Coke with Splenda, Dasani flavors, Fresca flavors,

share on an after-tax basis associated with a debt

and POWERade Option helped make 2005 a

exchange and the early retirement of certain debt.

successful year for Coca-Cola Consolidated. These

While demand in our largest product category

new products are just the beginning, with many

— sugar carbonated soft drinks — continues to

new, exciting offerings coming online in 2006,

be soft, innovative products have breathed new life

including Vault Zero, Tab Energy, Coke Blak,

into this category. One such product is Vault, a

Black Cherry Vanilla Coke, diet Black Cherry

citrus-flavored hybrid drink, part soft drink and

Vanilla Coke, Full Throttle Fury, Cinnabon coffee

part energy drink. Vault is the result of a close

drinks and other items.

collaboration among The Coca-Cola Company,

We also continue to look for new ways to pack-

Coca-Cola Consolidated and several other bottlers

that clearly demonstrates there are ways to grow

age our products for consumers, and we recently
made improvements in our Fridge PackTM can and

volume and share in the mature sugar carbonated

bottle packaging to make it even more convenient

soft drink market.

and consumer-friendly. Additionally, we are experi-

Product and packaging innovation continues

menting with a number of exciting new packaging

to play a vital role in our success. Consumers

innovations including new multipack can configura-

are increasingly looking for new and different

tions, new large plastic bottle sizes and more glass

beverage offerings. The growth within the

packaging, which we plan to introduce throughout

industry is in water, sports drinks, energy drinks,

our territory in 2006.

other noncarbonated beverages and low-calorie

carbonated soft drinks. To respond to the changing

tastes of our consumers, we have aggressively

added new products over the past

several years.

Make. Sell. Deliver.

L e t t e r t o S h a r e h o l d e r s

We noted that there were considerable challenges

in 2005. We experienced extraordinary increases in

packaging costs, both in aluminum cans and plastic

bottles. The global energy crunch drove fuel prices up

dramatically, and large parts of our Mississippi and

Alabama territories were devastated by Hurricane

Katrina. Further, health care costs continued to out-

pace inflation, and interest rates were up significantly

over the previous year.

To address these challenges, we streamlined and

reorganized our sales, technical service and fleet opera-

tions and continued a long-standing discipline of closely

managing both capital and operating expenses. We are

undertaking numerous initiatives to redesign work to

improve the productivity of our people and assets as we

continue to invest in front of opportunities.

We have also taken steps to better address rising health

care costs by overhauling our benefits plan. Our new plan’s

objective is to be more consumer-driven, and it is structured

to encourage employees to treat health care expenses like other

family expenses by creating individual health care accounts.

The plan allows employees to save unspent balances for future

health care needs.

Despite rising interest costs, the Company continued to

strengthen its financial position as debt, net of cash investments,

decreased by $42 million from last year. The Company has

significantly reduced debt over the past five years, which has led to

improvements in our financial flexibility and has been an important

contributor to increases in shareholder value.

The changing nature of our industry demands continuous

improvement from those who are committed to winning. The

number of package and product combinations, or stock keeping

Consolidated's biggest launch in 2005 was Vault, the very first energy
hybrid soda. Vault is the result of major brand innovation, and consumers
love the beverage that "drinks like a soda, kicks like an energy drink."

units (SKUs), has grown dramatically in recent

We will continue to face challenges in 2006

years — to nearly 450. We concur with industry

and beyond, but we believe we have the best

experts who predict the number of SKUs will

team of people in the industry, executing a

continue to rise significantly. This emerging

winning strategy with a spirit of determination

reality dictates that we increase capabilities and

and optimism. While we are constantly looking

flexibility to sell, warehouse and deliver our

for ways to improve our performance, we are also

products. To meet these challenges, we have

seeking opportunities beyond the traditional

moved from conventional to predictive selling,

soft drink bottler model to achieve growth and

expanded our bulk delivery operation and greatly

increase shareholder value. We believe our best

improved warehouse efficiencies. We have made

is yet to come.

J. Frank Harrison, III
Chairman of the Board and Chief Executive Officer

William B. Elmore
President and Chief Operating Officer

significant investments in supply chain redesign,

and this year, we will begin to roll out our

redesigned ATLAS route delivery system.

Last year, a respected industry publication,

Beverage World, named Coca-Cola Consolidated

its “Bottler of the Year.” This is a tribute to every-

one who works for Coca-Cola Consolidated —

the 6,000 men and women who have dedicated

themselves to our mission — to make, sell and

deliver soft drinks better than anyone else.

We salute all of our fellow employees for this

well-deserved recognition.

We want to mention our employees on the

Mississippi and Alabama Gulf Coast whose

lives were deeply affected by Hurricane Katrina.

Their resilience has inspired us all. We thank

the hundreds of Coca-Cola Consolidated people

who donated their time, efforts and money to

help their fellow employees, many of whom lost

everything in the worst natural disaster in U.S.

history. At Coca-Cola Consolidated, we work as

a great team, and dealing with adversity has only

made us closer and stronger.

Make. Sell. Deliver.

O u r B u s i n e s s

iven all the challenges Coca-Cola

Bottling Co. Consolidated confronted in

2005, we are pleased with the Company’s revenue

and net income. The obstacles were many —

record packaging cost increases, a dramatic spike

in fuel costs, continuing health care cost

increases and significant eco-

nomic disruption caused by the

costliest hurricane in the nation’s

history. Despite these serious dif-

ficulties, Coca-Cola Consolidated

realized volume, revenue and

market share gains while produc-

ing solid bottom-line results.

Our mission is to make, sell

and deliver soft drinks better

than anyone else. In an industry

with many outstanding operators,

that is an ambitious goal, but one

that members of the Coca-Cola

Consolidated team have enthusias-

tically embraced.

A forklift operator at Charlotte's Snyder Production Center
prepares to load more Coke Zero for delivery to the market.

We are in an extremely competitive business and we

ask a lot of our employees. Our employees have never

failed to deliver.

Revenue Management

Revenue management is at the heart of our business,

encompassing brand, package, channel and pricing strat-

egies; customer management; brand and packaging inno-

vation; and Coca-Cola system collaboration. Success in

revenue management means finding the proper balance

among generating growth in volume, market share and

gross margin. It requires thoughtful strategies, good

relationships and fact-based decision-making.

We are evolving into a total nonalcoholic beverage

business, and our brand, package, channel and pricing

strategies reflect that evolution. In our core carbonated

soft drink business, we are working with The Coca-Cola

Company to introduce new brands, execute meaningful

consumer marketing programs and develop channel-spe-

cific promotional packaging. With our retail customers,

we have begun an initiative to redesign beverage

aisle sets to better grab the consumer’s attention

and accommodate more brands

and packages.

Make. Sell. Deliver.

7
7

O u r B u s i n e s s

Our new grocery beverage set, positioned by brand, makes it
easier for consumers to find their favorite packages. The set
debuted in Roanoke, VA.

In the fast-growing water and noncarbonated

beverage categories, we continue to work

with our customers to expand shelf-

space availability.

In the critically important conven-

ience and immediate consumption

channels, we are refining 20-ounce

pricing as we balance volume, revenue and

gross margin while aggressively expanding

availability of POWERade, Dasani and Dasani

flavors.

Innovation

The “new” news in innovation

in 2005 was Vault, The Coca-Cola

Company’s new citrus drink. Vault, the

first of a new category of hybrid bever-

ages, boasts the slogan “drinks like a soda,

kicks like an energy drink.” Coca-Cola

Consolidated participated in the initial

test market for Vault and rolled out the

promising new product Company-wide late

in the year. The Coca-Cola Company is backing

the product with excellent marketing and advertis-

ing programs, including attention-grabbing

television commercials. Vault and Vault Zero

have given us the exciting and innovative citrus

beverages we need to compete in the important

convenience and immediate consumption channels.

In addition to Vault, we launched Coke Zero in

2005. Coke Zero is the first beverage to have

all the great taste of Coca-Cola classic with zero

calories. Other new products included diet Coke

with Splenda, POWERade Option, Dasani flavors,

Fresca and Fresca flavors.

We are excited about the innovation pipeline

coming from The Coca-Cola Company. New prod-

ucts being launched in 2006 include Tab Energy

(the first energy drink for women), Coke Blak

(a unique cola-coffee fusion beverage), Dasani

Sensations (refreshing, lightly carbonated flavored

water), Full Throttle Fury, Vault Zero, Black

Cherry Vanilla Coke and diet Black Cherry

Vanilla Coke, among others.

Supply Chain Redesign

Over the past several years, we have made dra-

matic changes in our sales and delivery systems to

improve customer service, drive productivity and

accommodate the growing number of new brands

and packages we sell. We have converted from a

conventional route sales and delivery system to

a pre-sell and bulk delivery system with more than

90 percent of our volume now handled through

a predictive selling method.

Make. Sell. Deliver.

O u r B u s i n e s s

We have also made significant investments in

processes and equipment to take our supply chain

redesign to the next level. After extensive tests, we

are rolling out a new pre-sell route delivery system,

ATLAS, in a number of markets in 2006. This

new delivery system will improve productivity and

quality of life for our delivery employees by using

new technologies to reduce the physical demands

of the job.

We believe this investment in processes,

systems and equipment will greatly improve

productivity and position Coca-Cola

Consolidated to more effectively compete

in the rapidly changing nonalcoholic

beverage industry.

Sales Reorganization

In 2005, we streamlined our sales organization

into two operating units and functionalized our

cold drink organization. Over the past several

years, our cold drink efforts have not produced

consistent results. By creating a dedicated and

centralized organization and giving our cold drink

organization enhanced systems and tools, we have

infused energy and focus into this critical part of

our business.

We are constantly looking for innovative ways to display
our new lines of products. Set to roll out in 2006, this
display highlights our hydration and energy products.

Organizational Resources

To succeed, we must have the right people, pro-

cesses and systems to operate the business now and

in the future. To do so, we continue to develop lead-

ers within the Company, to stretch our employees’

capabilities and grow talent for the future. The recent

sales reorganization will provide significant opportu-

nities for many employees to develop and grow.

We have the best team of dedicated employees in the

business and a culture that recognizes and supports

honesty, integrity and teamwork. The Company is

committed to helping each employee grow in his or

her capabilities, and our employees are dedicated to

the success of the Company.

The Company recognizes that our employees are

whole people, with physical, emotional and spirit-

ual needs. Our Corporate Chaplain program helps

employees and their families cope with problems

either at work or at home, and this program has been

positively received. Our developing stewardship pro-

grams seek to help our employees deal with pressures

of single-parenthood or health or emotional issues

through spiritual outreach. This is all part of our

mission to be the best company — and people —

we can be.

Make. Sell. Deliver.

The Spirit of the
Coca-Cola Consolidated Family

Manager Willie Meador spear-

headed the Company’s efforts

to help our employees. That

help came in the form of emergency

cash, food, ice, fuel and moral support.

Despite their own losses, employees were eager to get

back to work to begin the process of rebuilding their communities

by serving those customers able to reopen their stores.

Coca-Cola Consolidated has provided employee disaster

relief for many years, helping dozens of employees cope with

floods, fires and other natural disasters, but Katrina created

unimaginable demands on the areas we serve. The Company and

its employees stepped in with contributions to the Quench the

On August 29, 2005, the lives of millions

Thirst Foundation, a charitable foundation the Company helped

on the Gulf Coast changed forever as

establish in 2005 to help citizens in distress. Beyond the Quench

Hurricane Katrina crashed ashore with

the Thirst assistance, the Company secured building materials

150 mile-per-hour winds and a 30-foot

and provided contractors for major home repairs.

storm surge. Ground Zero for the cost-

In addition to helping our employees, Coca-Cola Consolidated

liest hurricane in U.S. history was the

and the Coca-Cola system provided hundreds of thousands

Mississippi coast, where destruction hit a

of cases of canned drinking water to hurricane victims from

large part of Coca-Cola Consolidated’s territory.

Alabama to Louisiana, as well as financial assistance for major

Entire towns were shattered; homes, businesses and livelihoods

relief organizations like the Salvation Army and the Red Cross.

were decimated. For several days, we were unable to contact many

The spirit, courage and determination of the Coca-Cola

of the more than 100 members of the Coca-Cola Consolidated

Consolidated family shone through in difficult times.

family who live in the affected areas. All our employees survived

It is that same determination that will be needed in the long

the storm, but several of them lost family members. For many,

recovery ahead for the region. Our people

their homes and all their possessions were lost.

will continue to lead the way back to

Mobile, AL Sales Unit Manager Mike Strong;

bigger, better and stronger

Ocean Springs, MS Branch Manager Roney

communities along

Hill; and Laurel, MS Branch

the Gulf Coast.

Consolidated Statements of Operations

Fiscal Year

In Thousands (Except Per Share Data)

2005

2004

2003

Net sales

$1,380,172 $1,267,227 $1,220,403

Cost of sales, excluding depreciation expense shown below

752,409

659,466

629,080

Gross margin

627,763

607,761

591,323

Selling, delivery and administrative expenses, excluding

depreciation expense shown below

Depreciation expense

Amortization of intangibles

Income from operations

Interest expense

Minority interest

Income before income taxes

Income taxes

Net income

Basic net income per share

Diluted net income per share

466,533

449,497

428,462

68,222

880

70,798

3,117

76,485

3,105

92,128

84,349

83,271

49,279

4,097

38,752

15,801

43,983

3,816

36,550

14,702

41,914

3,297

38,060

7,357

22,951 $

21,848 $

30,703

2.53 $

2.41 $

2.53 $

2.41 $

3.40

Weighted average number of common shares outstanding

9,083

9,063

9,043

Weighted average number of common shares outstanding –

assuming dilution

9,083

9,063

9,043

These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto which are included
in the Company’s Annual Report on Form 10-K for the fiscal year ended January 1, 2006.

Consolidated Balance Sheets

In Thousands (Except Share Data)

ASSETS
Current assets:

Cash and cash equivalents
Accounts receivable, trade, less allowance for doubtful accounts

of $1,318 and $1,678, respectively

Accounts receivable from The Coca-Cola Company
Accounts receivable, other
Inventories
Prepaid expenses and other current assets

Total current assets

Property, plant and equipment, net
Leased property under capital leases, net
Other assets
Franchise rights, net
Goodwill, net
Other identifiable intangible assets, net

Total

Jan. 1,
2006

Jan. 2,
2005

39,608 $

8,885

94,576
2,719
8,388
58,233
8,862

82,036
7,049
9,637
48,886
7,935

212,386

164,428

389,199
73,244
39,235
520,672
102,049
5,054

418,853
76,857
25,270
520,672
102,049
5,934

$1,341,839 $1,314,063

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:

Current portion of debt
Current portion of obligations under capital leases
Accounts payable, trade
Accounts payable to The Coca-Cola Company
Other accrued liabilities
Accrued compensation
Accrued interest payable

Total current liabilities

Deferred income taxes
Pension and postretirement benefit obligations
Other liabilities
Obligations under capital leases
Long-term debt

Total liabilities

Commitments and Contingencies

Minority interest

Stockholders’ Equity:
Common Stock, $1.00 par value:

Authorized-30,000,000 shares; Issued-9,705,451 and 9,704,951 shares,
respectively

Class B Common Stock, $1.00 par value:

Authorized-10,000,000 shares; Issued-3,068,366 and 3,048,866 shares,
respectively

Capital in excess of par value
Retained earnings
Accumulated other comprehensive loss

Less-Treasury stock, at cost:

Common Stock-3,062,374 shares
Class B Common Stock-628,114 shares

Total stockholders’ equity

Total

Jan. 1,
2006

Jan. 2,
2005

6,539 $
1,709
44,536
15,516
50,876
18,969
9,670

8,000
1,826
30,989
18,223
50,409
17,186
11,864

147,815

138,497

167,131
54,844
85,188
77,493
691,450

165,578
42,361
85,260
79,202
700,039

1,223,921

1,210,937

42,784

38,687

9,705

9,704

3,068
99,376
54,355
(30,116)

3,049
98,255
40,488
(25,803)

136,388

125,693

60,845
409

75,134

60,845
409

64,439

$1,341,839 $1,314,063

Consolidated Statements of Cash Flows

In Thousands
Cash Flows from Operating Activities
Net income
Adjustments to reconcile net income to net cash provided by operating

activities:

Depreciation expense
Amortization of intangibles
Deferred income taxes
Losses on sale of property, plant and equipment
Amortization of debt costs
Amortization of deferred gains related to terminated interest rate agreements
Minority interest
(Increase) decrease in current assets less current liabilities
(Increase) decrease in other noncurrent assets
Increase (decrease) in other noncurrent liabilities
Other

Total adjustments
Net cash provided by operating activities
Cash Flows from Financing Activities
Proceeds from the issuance of long-term debt
Payment of long-term debt
Repayment of current portion of long-term debt
Repayment of lines of credit, net
Cash dividends paid
Principal payments on capital lease obligations
Proceeds from settlement of forward interest rate agreements
Debt issuance costs paid
Premium on exchange of long-term debt
Other
Net cash used in financing activities
Cash Flows from Investing Activities
Additions to property, plant and equipment
Proceeds from the sale of property, plant and equipment
Proceeds from the redemption of life insurance policies
Acquisitions of companies, net of cash acquired
Net cash used in investing activities
Net increase (decrease) in cash
Cash at beginning of year
Cash at end of year
Significant non-cash investing and financing activities

Issuance of Class B Common Stock in connection with stock award
Capital lease obligations incurred
Exchange of long-term debt

2005

Fiscal Year
2004

2003

$ 22,951 $ 21,848 $ 30,703

68,222
880
3,105
775
1,967
(1,679)
4,097
4,902
(1,475)
(1,471)
(180)
79,143
102,094

70,798
3,117
14,244
752
1,101
(1,945)
3,816
(8,098)
531
11,596
101
96,013
117,861

(8,550)

(1,500)
(9,084)
(1,826)

(85,000)
(78)
(9,600)
(9,063)
(1,843)

76,485
3,105
7,357
1,182
1,082
(2,082)
3,297
(13,212)
914
12,685
(182)
90,631
121,334

100,000
(50,000)
(35,039)
(20,000)
(9,043)
(1,340)
3,135
(1,039)

(15,554)
692
(35,822)

(39,992)
4,443

(35,549)
30,723
8,885
$ 39,608 $

$ 1,141 $

164,757

150
(105,434)

(644)
(13,970)

(52,860)
2,225
29,049

(57,795)
2,845

(52,563)
(21,586)
(107,513)
(9,159)
(149)
18,193
18,044
8,885 $ 18,044

1,055 $
37,307

1,254
877

These condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto which are included in
the Company’s Annual Report on Form 10-K for the fiscal year ended January 1, 2006.

Consolidated Statements of Changes in Stockholders’ Equity

In Thousands

Balance on December 29, 2002
Comprehensive income:
Net income
Net gain (loss) on derivatives,

net of tax

Net change in minimum pension liability

adjustment, net of tax

Total comprehensive income
Cash dividends paid

Common ($1.00 per share)
Class B Common ($1.00 per share)

Issuance of Class B Common Stock

Common
Stock

Class B
Common
Stock

Capital in
Excess of
Par Value

Retained
Earnings

Accumulated
Other
Comprehensive
Loss

Treasury
Stock

Total

$ 9,704

$ 3,009

$ 95,986

$ 6,043

$ (20,621)

$ (61,254) $ 32,867

(62)

(3,247)

30,703

(6,642)
(2,401)

30,703

(62)

(3,247)
27,394

(6,642)
(2,401)
1,254

1,234

Balance on December 28, 2003

$ 9,704

$ 3,029

$ 97,220

$ 27,703

$ (23,930)

$ (61,254) $ 52,472

Comprehensive income:
Net income
Net gain (loss) on derivatives,

net of tax

Net change in minimum pension liability

adjustment, net of tax

Total comprehensive income
Cash dividends paid

Common ($1.00 per share)
Class B Common ($1.00 per share)

Issuance of Class B Common Stock

(1,935)

21,848

(6,642)
(2,421)

21,848

(1,935)
19,975

(6,642)
(2,421)
1,055

1,035

Balance on January 2, 2005

$ 9,704

$ 3,049

$ 98,255

$ 40,488

$ (25,803)

$ (61,254) $ 64,439

Comprehensive income:
Net income
Net change in minimum pension liability

adjustment, net of tax

Total comprehensive income
Cash dividends paid

Common ($1.00 per share)
Class B Common ($1.00 per share)

Issuance of Class B Common Stock
Conversion of Class B Common Stock

into Common Stock

(4,313)

22,951

(6,643)
(2,441)

22,951

(4,313)
18,638

(6,643)
(2,441)
1,141

—

1,121

(1)

Balance on January 1, 2006

$9,705

$3,068

$99,376

$54,355

$(30,116)

$(61,254) $75,134

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Stockholders of Coca-Cola Bottling Co. Consolidated:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board

(United States), the consolidated financial statements of Coca-Cola Bottling Co. Consolidated as of

January 1, 2006 and January 2, 2005, and for each of the three years in the period ended January 1,

2006, management’s assessment of the effectiveness of the Company’s internal control over financial

reporting as of January 1, 2006 and the effectiveness of the Company’s internal control over financial

reporting as of January 1, 2006; and in our report dated March 13, 2006, we expressed unqualified

opinions

thereon. The consolidated financial

statements and management’s assessment of

the

effectiveness of internal control over financial reporting referred to above (not presented herein)

appear in Item 8 of the Company’s Annual Report on Form 10-K for the fiscal year ended January 1,

2006.

In our opinion, the information set forth in the accompanying condensed consolidated financial

statements is fairly stated, in all material respects, in relation to the consolidated financial statements

from which it has been derived.

Charlotte, North Carolina

March 13, 2006

Board of Directors

Executive Officers

J. Frank Harrison, III
Chairman of the Board of Directors and Chief

Executive Officer

Coca-Cola Bottling Co. Consolidated
H. W. McKay Belk
President and Chief Merchandising Officer
Belk, Inc.
Sharon A. Decker
Chief Executive Officer
The Tapestry Group, LLC
William B. Elmore
President and Chief Operating Officer
Coca-Cola Bottling Co. Consolidated
James E. Harris
Executive Vice President and Chief Financial

Officer

MedCath Corporation
Deborah S. Harrison
Affiliate Broker
Fletcher Bright Companies
Ned R. McWherter
Former Director of Piedmont Natural Gas Co.,
Inc. and Volunteer Distributing Co., Inc.
Former Governor of the State of Tennessee
John W. Murrey, III
Assistant Professor
Appalachian School of Law
Robert D. Pettus, Jr.
Vice Chairman of the Board of Directors
Coca-Cola Bottling Co. Consolidated
Carl Ware
Retired Executive Vice President,

Public Affairs and Administration

The Coca-Cola Company
Dennis A. Wicker
Partner
Helms Mulliss & Wicker, PLLC
Former Lieutenant Governor of the State of

North Carolina

Executive Officer

William B. Elmore
President and Chief Operating Officer

Robert D. Pettus, Jr.
Vice Chairman of the Board of Directors

Henry W. Flint
Executive Vice President and Assistant to the

Chairman

William J. Billiard
Vice President, Controller

Clifford M. Deal, III
Vice President, Treasurer

Norman C. George
Senior Vice President, Chief Marketing and

Customer Officer

Ronald J. Hammond
Senior Vice President, Operations

Kevin A. Henry
Senior Vice President, Human Resources

Umesh M. Kasbekar
Senior Vice President, Planning and

Administration
C. Ray Mayhall, Jr.
Senior Vice President, Sales

Lauren C. Steele
Vice President, Corporate Affairs

Steven D. Westphal
Senior Vice President and Chief Financial Officer

Jolanta T. Zwirek
Senior Vice President, Chief Information Officer

Corporate Information

Transfer Agent and Dividend Disbursing Agent
The Company’s transfer agent is responsible for stockholder records, issuance of stock certificates and
distribution of dividend payments and IRS Form 1099s. The transfer agent also administers plans for
dividend reinvestment and direct deposit. Stockholder requests and inquiries concerning these matters
are most efficiently answered by corresponding directly with American Stock Transfer & Trust
Company, 59 Maiden Lane, New York, New York 10038. Communication may also be made by
calling Toll-Free (866) 668-6550, Local (718) 921-8346 or Fax (718) 236-2641.

Stock Listing
Nasdaq National Market System
Nasdaq Symbol – COKE

Company Website
www.cokeconsolidated.com
The Company makes available free of charge through its Internet website its Annual Report on
Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and all amendments to
those reports as soon as reasonably practicable after such material is electronically filed with or furnished
to the Securities and Exchange Commission.

Corporate Office
The corporate office is located at 4100 Coca-Cola Plaza, Charlotte, North Carolina 28211. The mailing
address is Coca-Cola Bottling Co. Consolidated, P. O. Box 31487, Charlotte, NC 28231.

Annual Meeting
The Annual Meeting of Stockholders of Coca-Cola Bottling Co. Consolidated will be held at Snyder
Production Center, 4901 Chesapeake Drive, Charlotte, North Carolina 28216, on April 28, 2006, at
10 a.m. local time.

Form 10-K and Code of Ethics for Senior Financial Officers
A copy of the Company’s Annual Report to the Securities and Exchange Commission (Form 10-K)
and its Code of Ethics for Senior Financial Officers is available to stockholders without charge
upon written request to Steven D. Westphal, Senior Vice President and Chief Financial Officer,
Coca-Cola Bottling Co. Consolidated, P. O. Box 31487, Charlotte, North Carolina 28231. This
information may also be obtained from the Company’s website listed above.

Make. Sell. Deliver.

Coca-Cola Bottling Co. Consolidated
4100 Coca-Cola Plaza

Charlotte, North Carolina 28211

Mailing Address: Post Office Box 31487

Charlotte, NC 28231

704.557.4400