Coca-Cola Consolidated, Inc. (NASDAQ: COKE)

Coca‑Cola Consolidated, Inc. distributes markets and manufactures nonalcoholic beverages in territories covering 14 states and the District of Columbia. The company was incorporated in 1980 and together with its predecessors has been in the beverage business since 1902. It is the largest Coca‑Cola bottler in the United States. Approximately 85% of its bottle/can sales volume to retail customers consists of products of The Coca‑Cola Company. The company also distributes products for other beverage companies such as Monster Energy Company and Keurig Dr Pepper Inc.

Revenue is generated primarily from bottle/can sales and other sales. Bottle/can sales include products packaged in plastic bottles and aluminum cans sold to retail outlets. Other sales comprise sales to other Coca‑Cola bottlers, post mix sales, transportation revenue and equipment maintenance revenue. The company offers a range of sparkling and still beverages, including Coca‑Cola, Barqs Root Beer, Minute Maid, Dasani, Fanta, Sprite, BODYARMOR, Monster Energy and Dr Pepper brands. Sales of beverages supplied under agreements with Monster Energy and Dr Pepper represented approximately 15% of total bottle/can volume to retail customers in recent years.

Coca‑Cola Consolidated, Inc. holds a leading position as the largest Coca‑Cola bottler in the United States. Its main competitors include local bottlers of PepsiCo products, local bottlers of Dr Pepper products and producers of private label beverages. The company competes through new product introductions, point of sale merchandising, pricing strategies, packaging innovations and strong relationships with The Coca‑Cola Company. Exclusive distribution and manufacturing rights granted under agreements with The Coca‑Cola Company provide a competitive advantage in its territories. The company's scale, extensive distribution network and long operating history further support its market position.

The company serves a broad customer base that includes grocery stores, mass merchandise stores, club stores, convenience stores, drug stores, on premise locations such as restaurants, schools, amusement parks and recreational facilities, and vending machine operators. It also uses alternative routes to market involving third party distributors, manufacturers and customer supply chains, for which it receives a fee but the volume is not included in reported sales. Walmart Inc., including Sam's Club and Walmart Neighborhood Market, accounts for approximately 21% of bottle/can sales volume and about 17% of total net sales. The Kroger Co., including Kroger and Harris Teeter chains, represents roughly 15% of bottle/can sales volume and about 12% of net sales. No other individual customer exceeds 10% of the company's net sales or would cause a material adverse effect if lost.