Coca-Cola Consolidated
Annual Report 2005

Plain-text annual report

C 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 $ 2.53 $ 2.41 $ 2.41 $ 38,060 7,357 30,703 3.40 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. 1 L e t t e r t o S h a r e h o l d e r s 2 D 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. 3 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." 4 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. 5 O u r B u s i n e s s 6 G 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. 8 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. 9 O u r B u s i n e s s 10 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. 11 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. 12 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 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. 13 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 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. 14 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 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. 15 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. 16 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 20 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 62 (1,935) 21,848 (6,642) (2,421) 21,848 62 (1,935) 19,975 (6,642) (2,421) 1,055 20 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 20 (1) 1 Balance on January 1, 2006 $9,705 $3,068 $99,376 $54,355 $(30,116) $(61,254) $75,134 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. 17 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 18 Board of Directors Executive Officers J. Frank Harrison, III Chairman of the Board of Directors and Chief 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 19 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. 20 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 www.cokeconsolidated.com 

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