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Coca-Cola Consolidated

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Industry Beverages - Non-Alcoholic
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FY2006 Annual Report · Coca-Cola Consolidated
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Coca-Cola Bottling Co. Consolidated 

is the second largest Coca-Cola bottler 

in the United States. We are a leader in 

manufacturing, marketing and distribution 

of soft drinks. With corporate offices in 

Charlotte, N.C., we have operations in 

11 states, primarily in the Southeast. The 

Company has one of the highest per capita 

soft drink consumption rates in the world 

and manages bottling territories with a 

consumer base of 18.7 million people. 

Coca-Cola Bottling Co. Consolidated is 

listed on the NASDAQ Stock Market (Global 

Market) under the symbol COKE.

This annual report is printed on recycled paper.

Fiscal Year

Financial Summary*
                                                             ______________________________________
In Thousands
(Except Per Share Data) 
_______________________________________________________________
$1,267,227
Net sales 
     600,693
Gross margin   
       36,550
Income before income taxes
       14,702
Income taxes 
       21,848
Net income 
Basic net income per share

$1,431,005
     622,579
       31,160
         7,917
       23,243

$1,380,172
     618,911
       38,752
       15,801
       22,951

       2005                2004

       2006

Common Stock 
Class B Common Stock

$         2.55
$         2.55

$         2.53
$         2.53

$         2.41
$         2.41

Diluted net income per share
Common Stock 
Class B Common Stock

$         2.55
$         2.54

$         2.53
$         2.53

$         2.41
$         2.41

* 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 December 31, 2006. The fiscal years 
presented are the 52-week periods ended December 31, 2006, and January 1, 2006, and the 53-week 
period ended January 2, 2005.

This Summary Annual Report includes forward-looking statements that reflect management’s 
current outlook for future periods. These statements relate to, among other things, future growth 
in the nonalcoholic beverage business; growth potential in carbonated soft drinks, or sparkling 
beverages; stock keeping units (SKUs) approaching 1,000 units in the near future; introduction 
of a number of new nonalcoholic beverage products in 2007; unprecedented cost of goods 
increases in 2007; restructuring costs in 2007; continued conversion of operations in 2007 
to incorporate the CooLift® delivery system and the six-day delivery cycle; rolling out a new 
service management system for our fountain and vending equipment services function; and 
new business initiatives providing tangible financial results during the next three to 10 years. 
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 management’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 December 31, 2006. The Company 
undertakes no obligation to publicly 
update or revise any forward-
looking statements.

 
 
 
 
 
 
 
 
 
 
 
D

ear Shareholders:

The soft drink industry has faced con-
siderable challenges during the past several 
years, and 2006 was no exception. Among 
the obstacles we faced were significant 
increases in raw material costs, escalating 
energy costs, market pricing pressures and 
insufficient innovation to address con-
sumers’ desire for enhanced variety.

Nevertheless, Coca-Cola Bottling Co. 
Consolidated (CCBCC) realized a strong 
fourth quarter in 2006 with net income 
of $8.6 million, or $.94 per basic share, 
compared to $1.9 million, or $.21 per 
basic share, for the fourth quarter of 2005. 

CCBCC’s new sleek 

can packaging brings a 

renewed energy to the 

“make” portion of our 

mission statement.

CCBCC earned $23.2 million in 2006, 
or $2.55 per basic share, compared to 
$23.0 million, or $2.53 per basic share, 
the previous year.

CCBCC’s net income in the fourth 
quarter and full year of 2006 reflected the 
favorable impact of a $4.9 million reduction 
in income tax expense. This was the result of 
agreements with state taxing authorities to 
settle certain tax positions. These favorable 
tax settlements impacted basic net income 
per share by $.54 for the fourth quarter 
and full year of 2006. The Company’s net 
income in the full year of 2005 reflected the 
favorable impact of $4.2 million after tax, or 
$.46 per basic share, as a result of proceeds 
received from the settlement of litigation 
related to high fructose corn syrup. This gain 
was offset partially by the impact of financ-
ing transaction costs of $1.0 million, or $.11 
per basic share.

While traditional sugar carbonated soft 
drinks remain our largest-selling product 
category, sales in this category continue 
to decline as consumers increasingly opt 
for more variety and different alternatives 
for hydration and liquid refreshment. The 
numerous reasons for this shift include an 

2 • Letter to Shareholders

increased consumer desire for specialization 
and personalization in their beverage 
choices, as well as an increasing focus by 
some consumers on health and wellness.

Even though sugar carbonated soft drink 

sales are declining, the total nonalcoholic 
beverage business is growing steadily. Con-
sumers are indeed drinking more nonalco-
holic beverages than ever, and this steady 
growth is projected well into the future. 
Accordingly, CCBCC has begun moving 
beyond the parameters of a traditional soft 
drink bottler and is in the process of trans-
forming itself to better capitalize on this 
changing environment.

Carbonated soft drinks, or sparkling 
beverages, continue to make up the major-
ity of our business, and we remain com-
mitted to being the very best soft drink 
bottler possible. We are encouraged by The 
Coca-Cola Company’s energized focus on 
sparkling beverages, and with the right 
brand and packages, we believe there is 
growth potential in this category. Current 
growth in our business is coming from our 
very strong low-calorie sparkling beverage 

portfolio, water and other noncarbonated 
drinks. To meet consumer desires, we are 
introducing new products and packages 
at an accelerated rate. This proliferation of 
products leads to complexities, and during 
the last several years, we have seen stock 
keeping units (SKUs) we sell grow from 
less than 200 to more than 450 today. We 
anticipate this number may approach 1,000 
in the near future. 

Our redesigned sales and delivery sys-
tems better position us to handle this SKU 
proliferation. The first step was to move 
from conventional to predictive selling, 
and then to implement the CooLift®
delivery system designed by the team at 
CCBCC. The CooLift® delivery system 
uses a newly designed powered lift and 
pre-built sales orders on custom pallets to 
significantly improve delivery efficiencies. 
We have implemented the CooLift® system 
in roughly half of CCBCC’s operations 
thus far.

Since the CooLift® delivery system pre-
sents such a compelling solution for distri-
butors, we have patented the technology 

Tab Energy and 

Enviga are examples 

of the innovative sleek 

can packaging.

Letter to Shareholders • 3

and established a wholly owned subsidiary, 
Swift Water Logistics, Inc., to market and 
sell the delivery system to bottlers, dis-
tributors and other companies focused on 
improving delivery efficiencies.

CCBCC has always been known as an 

innovative company, and following that 
tradition, we established a wholly owned 
subsidiary, ByB Brands, Inc. (ByB), to 
create and sell exciting, new nonalcoholic 
beverages. ByB’s current brands include 
Cinnabon Premium Coffee Lattes, the vita-
min-enhanced beverage Respect and the 
noncarbonated, flavored drink Tum-E 
Yummies. Cinnabon Lattes, through 
a series of agreements, will soon be 
available in 41 states nationwide. 
Respect and Tum-E Yummies are 
currently being sold in CCBCC sales 
territories, and we plan to expand 
the reach of both products in the 
near future. We anticipate CCBCC will 

introduce a number of new nonalcoholic 
beverage products in 2007 to focus on 
meeting the ever-changing consumer desire 
for customization and variety.

As we stated at the outset, 2006 was 
a challenging year, and the third quarter 
was particularly disappointing. Recogniz-
ing this, your Company began reviewing 
additional resource efficiencies in the fourth 
quarter that enabled us to improve 
our financial results. It also 

properly positioned us going into 2007, a 
year in which we must deal with unprec-
edented cost of goods increases, particularly 
aluminum cans and sweetener. In order to 
improve operating efficiencies and offset, 
to some extent, the anticipated increases 
in raw material costs, your Company has 
reorganized and restructured its Coca-Cola
franchise business. As a result of this 
restructuring, CCBCC estimates incurring 
$1.5 million to $2 million for one-time 
termination benefits, as well as $1.0 million 
to $1.5 million for other restructuring 
costs. In total, CCBCC estimates incur-
ring $3 million in expenses related to these 
changes in 2007.

Your Company’s mission statement 
asserts we will make, sell and deliver soft 
drinks better than anyone else, and that our 
values honor God. That remains at the heart 
of everything we do, and our commitment 
to our values and our culture is steadfast. 
We recognize we are in a rapidly changing 
business environment, and we believe we 
are taking the necessary steps to embrace 
and lead this change so we can continue to 
win in 2007 and beyond. While change can 
be challenging, it can also be exciting and 
renewing. The challenges we face serve as a 
test for us as a company, but we are opti-
mistic because we firmly believe we have the 
right plan, the right culture and the right 
people to lead this change.

J. Frank Harrison, III
Chairman of the Board and 

Chief Executive Officer

William B. Elmore
President and Chief 

Operating Officer

4 • Letter to Shareholders

M

ore than 120 years have passed 
since thirsty consumers first 

embraced a refreshing and delicious new 
drink called Coca-Cola. Many billions of 
servings later, Coca-Cola is arguably the 
world’s biggest brand, and the contour 
bottle is one of the most recognized sym-
bols on the planet.

When Coca-Cola Bottling Co. Con-
solidated (CCBCC) and its fellow bottling 
pioneers built the soft drink industry, it was 
a difficult and challenging business, but 
not a complex one – one product, one 
package, eager and thirsty consumers and 
very few competitors.

While Coca-Cola is still the best-selling
beverage brand in the world, the industry 
it spawned has become considerably more 
complex. There are now thousands of bever-
age products sold in hundreds of package 
and size combinations. The number of 
stock keeping units (SKUs) CCBCC sells 
has grown from less than 200 a few years 
ago to more than 450 today, and analysts 
predict that number could approach 1,000 
in the near future.

Early bottlers partnered with a rapidly 
growing retailer base to sell the one package 
– the 6.5-ounce green glass bottle – of one 
brand, Coca-Cola. Today, there are not 
only hundreds of competing beverage prod-
ucts, but the retailer proposition is more 

Retailers enjoy 

CCBCC’s energy at 

the Coca-Cola 600 

Dealer Days event.

complex as well, 
with fewer, larger 
and more powerful 
retail customers.

For much of the 

industry’s history, 
Coca-Cola bottlers 
faced competition from 
a handful of regional 
brands, but there was 
really only one primary 
competitor. The “cola wars” 
centered on taste, marketing, 
availability, price and customer 
service, but the consumer preference was 
clear – colas were king. While colas and 
other carbonated soft drinks continue to be 
the largest portion of the soft drink busi-
ness, consumer preferences are changing. 
Energy drinks, bottled waters, teas, vitamin-
enhanced beverages, coffee lattes and other 
products are providing the “new” news 
that caters to consumers looking for more 
variety in their beverages.

To compete and win in this changing 

environment, CCBCC must not only 
recognize the changing dynamics of 
the business, but embrace the 
exciting opportunities these 
changes present. We 
believe we are 
well-positioned

Our Business • 5

CCBCC’s energy 

results in revolutionary 

innovations like the 

CooLift ® delivery system.

6 • Our Business

to lead this change 
by building on the work your 
Company has already undertaken in product
innovation, process innovation and redesign, 
information systems enhancements, resource 
efficiency and a relentless focus on our Coca-Cola 
franchise sales business.

PRODUCT INNOVATION

During 2006, CCBCC established ByB Brands, 
Inc. (ByB), a wholly owned subsidiary that creates 
and develops beverage brands. ByB is off to an 
energetic start, launching Cinnabon Premium 
Coffee Lattes in CCBCC sales territories in 2006. 
Early in 2007, ByB entered into distribution agree-
ments making Cinnabon Lattes available in 41 
states nationwide. In addition, ByB has introduced 
the vitamin-enhanced beverage Respect and the 
noncarbonated, flavored drink Tum-E Yummies in 
CCBCC sales territories.

We are also encouraged and energized by new 
product innovations from The Coca-Cola Com-
pany. Two new product offerings include Enviga, a 
green tea-based, calorie-burning beverage, and Gold 
Peak, a premium tea. In addition, the announced 
purchase of FUZE by The Coca-Cola Company 
will give the Coke system a number of excellent 
new products to satisfy consumer demands.

PROCESS INNOVATION AND REDESIGN
As we evolve into a total nonalcoholic bever-
age company, we must efficiently make, sell and 
deliver the exploding number of SKUs. Again, your 
Company is well-positioned to do this with the 
work we began several years ago redesigning our 
selling and delivery functions. As part of this work, 
we moved to pre-sell, or predictive selling, which 
is an essential ingredient in our overall redesign. 
During 2006, we rolled out our CooLift® delivery 
system to more than half of CCBCC’s operations. 

The CooLift® system improves delivery 
efficiencies while making the route deliv-
ery job less physically demanding for our 
employees. The CooLift® system, along with 
a four-day work week and a six-day delivery 
cycle, enables us to significantly improve 
delivery efficiencies and customer service. 
We will continue the process of converting 
our operations in 2007 to incorporate the 
CooLift® delivery system and the six-day 
delivery cycle where appropriate.

The CooLift® system could revolution-
ize the beverage industry and has attracted 
much attention from other companies. 
As a result, we formed another wholly 
owned subsidiary, Swift Water Logistics, 
Inc., to market and sell the CooLift®
system to distributors and other soft drink 
bottlers. Swift Water Logistics is selling 
CooLift® equipment and related consulting 
services, and we are excited about its 
long-term prospects.

INFORMATION SYSTEMS 
ENHANCEMENTS

During the past several years, the 
Company has invested considerable time 
and financial resources to implement and 
upgrade its information systems to facilitate 
new processes and enable our employees to 
quickly access information for improved 
decision-making. The growth in SKUs 
demands more robust information systems 
and tools to manage an even more complex 
beverage portfolio. Our focus has been on 
developing new delivery-system applica-
tions, sales-demand planning, production 

planning, inventory 
and warehouse man-
agement systems and 
upgraded core financial 
systems. In 2007, we 
plan to roll out a new 
service management system 
that will support and enable 
improved processes and informa-
tion in our fountain and vending 
equipment services function. This 
function is an integral component of 
our cold drink business, as it handles 
the movement, repair and refurbish-
ment of our more than 200,000 cold 
drink assets. The cold drink busi-
ness is a key component of our 
Coca-Cola franchise business, 
as it has attractive margins and 
provides a great opportunity for 
brand building with consumers.
We have realized significant 
improvements in our informa-
tion systems in the past few 
years, with more to come.

RESOURCE EFFICIENCY
We are operating in a very 
difficult raw material cost envi-
ronment, with packaging, sweet-
ener and other cost of goods 
expected to reach unprecedented 
levels in 2007. This pressure 
comes amid continued elevated 
energy costs and increases in labor and 
employee health care benefits. Accordingly, 
we must continually assess and improve the 

Gold Peak, 

a premium 

tea, offers 

consumers an 

exciting new 

beverage option.

Our Business • 7

use of capital and operating resources and eliminate 
unnecessary spending. We remain focused on iden-
tifying opportunities to increase the use of resources 
to improve results, while streamlining operations to 
reduce inefficiencies. In the first quarter of 2007, we 
began streamlining operations and our organizational 
structure, which primarily involved a consolidation 
of the franchise business into one sales division, as 
well as a reorganization of other sales, delivery, sup-
ply chain and support functions.

FOCUSING ON THE CORE BUSINESS

We are energized by the progress of our new 
business initiatives. Our new business initiatives 
are designed to leverage our core competencies 
and complement our Coca-Cola franchise sales 
business. We anticipate these new business initiatives 
will provide tangible financial results during the 
next three to 10 years. Having said that, our primary 
focus and commitment is to the Coca-Cola franchise 
sales business. This is the heart and soul of CCBCC 
– yesterday, today and tomorrow. Our Company’s 
mission statement sets an ambitious goal – to make, 
sell and deliver soft drinks better than anyone else. 
To be the best Coca-Cola bottler we can be, we will 
have to continue to improve our manufacturing, 
selling and delivery capabilities. We remain commit-
ted to achieving that goal.

EMBRACING AND LEADING CHANGE

CCBCC not only recognizes the imperative for 
changes in the beverage business, but also embraces 
it. We are excited about the challenges facing us and 
the opportunities they present. We believe we have 
the right plan, the right culture and the right people 
to lead these changes and to win. Your Company is 
fortunate to have the most resourceful and dedicated 
workforce in the industry. They have been tested 
time and time again, and their desire to excel – and 
to win – is more evident today than ever. This is why 
we are convinced that the best is yet to come.

CCBCC’s employees 

use their energy and 

time to give back to the 

community through our 

stewardship program. 

8 • Our Business

Cover photography: © 2006 Harold Hinson

Consolidated Statements of Operations

Fiscal Year

In Thousands (Except Per Share Data)

2006

2005

2004

Net sales
Cost of sales

Gross margin

Selling, delivery and administrative expenses
Amortization of intangibles

Income from operations

Interest expense
Minority interest

Income before income taxes
Income taxes

Net income

Basic net income per share:
Common Stock
Weighted average number of Common shares

outstanding

Class B Common Stock
Weighted average number of Class B Common shares

outstanding

Diluted net income per share:
Common Stock
Weighted average number of Common shares

outstanding—assuming dilution

Class B Common Stock
Weighted average number of Class B Common shares

$1,431,005 $1,380,172 $1,267,227
666,534

808,426

761,261

622,579

618,911

600,693

537,365
550

525,903
880

513,227
3,117

84,664

50,286
3,218

31,160
7,917

92,128

49,279
4,097

38,752
15,801

84,349

43,983
3,816

36,550
14,702

23,243 $

22,951 $

21,848

2.55 $

2.53 $

2.41

6,643

6,643

6,643

2.55 $

2.53 $

2.41

2,460

2,440

2,420

2.55 $

2.53 $

2.41

9,120

9,083

9,063

2.54 $

2.53 $

2.41

$

$

$

$

$

outstanding—assuming dilution

2,477

2,440

2,420

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 December 31, 2006.

9

Consolidated Balance Sheets

In Thousands (Except Share Data)

ASSETS

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

of $1,334 and $1,318, 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

Dec. 31,
2006

Jan. 1,
2006

$

61,823 $

39,608

91,299
4,915
8,565
67,055
13,485

247,142

384,464
69,851
35,542
520,672
102,049
4,747

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

212,386

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

$1,364,467 $1,341,839

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 December 31, 2006.

10

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-9,705,551 and 9,705,451 shares,

respectively

Class B Common Stock, $1.00 par value:

Authorized-10,000,000 shares; Issued-3,088,266 and 3,068,366 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

Dec. 31,
2006

Jan. 1,
2006

$ 100,000 $
2,435
44,050
21,748
51,030
19,671
10,008

248,942

162,694
57,757
88,598
75,071
591,450

6,539
1,709
35,333
15,516
60,079
18,969
9,670

147,815

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

1,224,512

1,223,921

46,002

42,784

9,705

9,705

3,088
101,145
68,495
(27,226)

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

155,207

136,388

60,845
409

93,953

60,845
409

75,134

$1,364,467 $1,341,839

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 December 31, 2006.

11

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
Stock compensation expense
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 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
Investment in plastic bottle manufacturing cooperative
Other

Net cash used in investing activities

Cash Flows from Financing Activities
Payment of long-term debt
Payment of current portion of long-term debt
Payment of lines of credit, net
Cash dividends paid
Principal payments on capital lease obligations
Premium on exchange of long-term debt
Other

Net cash used in financing 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

2006

Fiscal Year
2005

2004

$ 23,243 $ 22,951

$ 21,848

67,334
550
(7,030)
1,340
2,638
929
(1,689)
3,218
5,863
3,585
2,736
180

79,654

68,222
880
3,105
775
1,967
860
(1,679)
4,097
4,042
(1,475)
(1,471)
(180)

79,143

70,798
3,117
14,244
752
1,101
1,141
(1,945)
3,816
(9,239)
531
11,596
101

96,013

102,897

102,094

117,861

(63,179)
2,454

(39,992)
4,443

(52,860)
2,225
29,049

(2,338)
(243)

(63,306)

(35,549)

(21,586)

(39)
(6,500)
(9,103)
(1,696)

(38)

(8,550)

(1,500)
(9,084)
(1,826)
(15,554)
692

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

150

(17,376)

(35,822)

(105,434)

22,215

39,608

30,723

8,885

(9,159)

18,044

$ 61,823 $ 39,608 $

8,885

$

860 $

1,141

$

1,055
37,307

164,757

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 December 31, 2006.

12

Consolidated Statements of Changes In Stockholders’ Equity

In Thousands

Balance on December 28, 2003
Comprehensive income:
Net income
Net gain 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

$3,029

$ 97,220

$27,703

$(23,930)

$(61,254) $52,472

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

—

20

(1)

1

1,121

Balance on January 1, 2006

$9,705

$3,068

$ 99,376

$54,355

$(30,116)

$(61,254) $75,134

Comprehensive income:
Net income
Net change in minimum pension liability

adjustment, net of tax

Total comprehensive income
Adjustment to initially apply
SFAS No. 158, net of tax

Cash dividends paid

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

Issuance of Class B Common Stock
Stock compensation expense

23,243

(6,643)
(2,460)

5,442

(2,552)

20

840
929

23,243

5,442

28,685

(2,552)

(6,643)
(2,460)
860
929

Balance on December 31, 2006

$9,705

$3,088

$101,145 $68,495

$(27,226)

$(61,254) $93,953

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 December 31, 2006.

13

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

December 31, 2006 and January 1, 2006, and for each of the three years in the period ended

December 31, 2006, management’s assessment of the effectiveness of the Company’s internal control

over financial reporting as of December 31, 2006 and the effectiveness of the Company’s internal

control over financial reporting as of December 31, 2006; and in our report dated March 13, 2007, we

expressed unqualified opinions thereon (with an explanatory paragraph relating to the Company’s

change in the manner in which it accounts for pension and postretirement benefits in 2006). 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 December 31, 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, 2007

14

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 Company
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

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

Chief 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 and
Chief Accounting Officer

Clifford M. Deal, III
Vice President, Treasurer

Norman C. George
President, ByB Brands, Inc.

Kevin A. Henry
Senior Vice President, Human Resources

Umesh M. Kasbekar
Senior Vice President, Planning and

Administration

Melvin F. Landis, III
Senior Vice President, Chief Marketing and

Customer Officer

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 and

Chief Information Officer

15

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
telephone Toll-Free (800) 937-5449 or via the Internet at www.amstock.com.

Stock Listing
The NASDAQ Stock Market (Global Market)
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 27, 2007, 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.

16

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