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Growing Our Company, Communities States in the Eastern Half of the United Marketing in Our New Territories

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Growing Our Company, Communities States in the Eastern Half of the United Marketing in Our New Territories STREET ADDRESS: ANNUAL REPORT 2015 4100 Coca-Cola Plaza GROWING COMPANY Charlotte, NC 28211 our MAILING ADDRESS: PO Box 31487 Charlotte, NC 28231 (704) 557-4400 GROWING FACEBOOK TWITTER INSTAGRAM www.CokeConsolidated.com /CokeConsolidated @CokeCCBCC @CocaColaConsolidated our COMPANY ANNUAL REPORT 2015 REPORT ANNUAL Here we grow. Board of Directors J. Frank Harrison, III Deborah H. Everhart Umesh M. Kasbekar Chairman of the Board of Directors Affiliate Broker Vice Chairman of the Board of Directors and Chief Executive Officer Real Estate Brokers, LLC and Secretary Coca-Cola Bottling Co. Consolidated Coca-Cola Bottling Co. Consolidated Henry W. Flint Alexander B. Cummings, Jr. President and James H. Morgan Executive Vice President and Chief Operating Officer Chairman Chief Administrative Officer Coca-Cola Bottling Co. Consolidated Covenant Capital, LLC The Coca-Cola Company James R. Helvey, III John W. Murrey, III Sharon A. Decker Managing Partner Assistant Professor (retired) Chief Operating Officer Cassia Capital Partners LLC Appalachian School of Law Tryon Equestrian Partners, Carolina Operations Dr. William H. Jones Dennis A. Wicker President Partner Morgan H. Everett Columbia International University Nelson Mullins Riley & Scarborough LLP Vice President Former Lieutenant Governor Coca-Cola Bottling Co. Consolidated State of North Carolina Executive Officers J. Frank Harrison, III Robert G. Chambless David M. Katz Chairman of the Board of Directors Senior Vice President, Sales, Senior Vice President and Chief Executive Officer Field Operations and Marketing Kimberly A. Kuo Henry W. Flint Clifford M. Deal, III Senior Vice President President and Vice President and Treasurer Public Affairs, Communications Chief Operating Officer and Communities Morgan H. Everett Umesh M. Kasbekar Vice President Lauren C. Steele Vice Chairman of the Board of Directors Senior Vice President, Corporate Affairs and Secretary James E. Harris Senior Vice President, Shared Services Michael A. Strong William J. Billiard and Chief Financial Officer Senior Vice President, Employee Integration Vice President, Chief Accounting Officer and Transition To our Shareholders 1 We are in the midst of one Once these acquisitions are communities. We are working hard to of the most transformative periods complete, we will serve customers, build one-to-one customer connections in our Company’s history. We are consumers and communities in 16 and brand loyalty through local growing our Company, communities states in the eastern half of the United marketing in our new territories. We and employees, and, most importantly, States. We believe these acquisitions are also eager to build our community our Purpose: To honor God in all of contiguous territories will provide outreach programs in our new territories we do, to serve others, to pursue opportunities to drive long-term growth to serve and make a difference in the excellence and to grow profitably. through increased scale, revenue communities in which our employees, We are substantially synergies, operating efficiencies, local customers and consumers live. expanding our footprint and market knowledge and expansion of Achieving our strategic influence in the U.S. Coca-Cola our adjacency businesses. Ownership plans would be impossible without system. Recent highlights include: of manufacturing facilities in our the dedication and hard work of our territories will allow us to operate our talented employees. We have grown IN 2014 AND EARLY 2015, we entire supply chain and respond more from 6,700 employees at the end of acquired distribution territories in eastern nimbly to evolving consumer demands. 2013 to a workforce of more than 9,000 Tennessee, Kentucky and Indiana, including Throughout our expansion, we at the end of 2015. We look forward to major markets in Knoxville, Tenn.; Louisville have maintained our focus on operating adding employees in the new territories and Lexington, Ky.; and Evansville, Ind. excellence as evidenced by our solid to the Coke Consolidated family as we 2015 financial results. We continue to complete our remaining acquisitions. IN MAY 2015, we signed a letter of intent drive revenue growth through product Throughout our expansion, we have with The Coca-Cola Company to acquire innovation and broader product and worked to optimize the transition new markets in 10 states and the District package offerings, including significant experience by staggering the transaction of Columbia, including major markets in increased distribution of Monster dates. Successfully blending our new Baltimore, Md.; Alexandria, Norfolk and Energy products. We also continue to and legacy teammates in a collaborative Richmond, Va.; Cincinnati, Columbus and focus on ongoing cost-containment manner has been a top priority. Dayton, Ohio; and Indianapolis, Ind. initiatives and operational efficiencies As we grow our Company, we in our new and legacy territories. remain guided by our Purpose. We are IN SEPTEMBER 2015, we signed a During the past two years, we privileged to sell the world’s greatest letter of intent with The Coca-Cola Company have expanded our consumer base brands, and we remain committed to to acquire six manufacturing facilities in from about 21 million people in 11 disciplined, profitable growth that drives Virginia, Maryland, Indiana and Ohio. states to approximately 33 million long-term shareholder value. We are people in 14 states, providing us with a grateful for your continued support. IN OCTOBER 2015, we signed an tremendous opportunity to serve new agreement with The Coca-Cola Company and other bottlers to form a national product supply group which will oversee system production throughout the United States and increase competitiveness through strategic infrastructure planning, innovation planning and optimal product sourcing. IN FEBRUARY 2016, we signed a letter of intent with The Coca-Cola Company to acquire new markets in northern Ohio and northern West Virginia and to acquire an additional manufacturing facility in Ohio. J. Frank Harrison, III Henry W. Flint Chairman of the Board and President and Chief Executive Officer Chief Operating Officer Company Growth In 2015, Coke Consolidated completed transactions to expand its distribution territory to include Lexington, Louisville, Paducah and Pikeville, Ky.; Evansville, Ind.; Cookeville and Cleveland, Tenn.; Norfolk, Fredericksburg and Staunton, Va.; and Elizabeth City, N.C. Norfolk, Va. Coke Consolidated opened its 71,280-square-foot Customer Care Center in northeast Charlotte in 2015. The Customer Care Center handles all incoming and outgoing customer calls – totaling 2.2 million calls annually. The facility features color-coded work stations, desks that easily convert from a traditional seated position to a standing ergonomic counter in seconds and numerous casual meeting and break out pods to encourage a collaborative work environment. Customer Care Center - Charlotte, N.C. While making its debut as Louisville’s new Coca-Cola bottler, Coke Consolidated celebrated the grand opening of its new Sales and Distribution Center. Coke Consolidated renovated a once- vacant warehouse and added 100,000 square feet of new space on the 25-acre site in southwest Louisville. The new facility handles sales and distribution of Coca-Cola products in a 21-county area. Distribution Center - Louisville, Ky. Territory Growth 3 During the past two years, Coke Consolidated has expanded its consumer base from about 21 million people in 11 states to approximately 33 million people in 14 states. Pennsylvania Maryland Illinois Indiana West Virginia Kentucky Virginia Coke Consolidated’s product portfolio has grown to include approximately 275 brands and flavors in a wide North Carolina variety of package types and sizes. Tennessee South Carolina Mississippi Alabama Georgia Florida – Legacy Territory (pre-2014) Minute Maid Tropical Blend, Yup! Milk in several flavors, Sprite Tropical Mix, Mello Yello Cherry and a variety – New Territory of Monster Energy drinks are among the many new products and packaging (2014-2015) Coke Consolidated introduced in 2015. Community Growth Coke Consolidated has identified and restored more than two dozen building murals and signs in towns and cities throughout its territory, creating economic development opportunities for businesses and residents while increasing its presence in the communities it serves. Now in its fourth year, Fit Family Challenge The Serve Your City program began in expanded to all North Carolina, South 2014 with the mission to get the public Carolina and Nashville, Tenn., residents. involved with local nonprofit organizations. The free, eight-week program promotes In 2015, Coke Consolidated challenged healthy, active lifestyles. To join the challenge communities to volunteer for a and be eligible to win prizes, participants National Day of Service on Feb. 21. register online and track their activity, eating Coke Consolidated ran the initiative in habits and hydration levels. Families then Charlotte, Fayetteville, Greensboro and earn points, based on participation, for a Raleigh in N.C., Charleston and Columbia chance to win prizes including a family in S.C., Nashville, Tenn., and Mobile, Ala. vacation to Universal Orlando in Florida. 5 Coke Consolidated’s stewardship initiative, Coke Cares, strives to serve the physical, emotional and spiritual needs of others with caring hearts and hands. Through its stewardship program, Coke Consolidated manages and coordinates service activities that encourage employees to share
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