Coca-Cola Consolidated Pacts With Coke For Expanded Distribution

CHARLOTTE, NC -- Coca-Cola Bottling Co. Consolidated reports that it has signed a nonbinding letter of intent with Coca-Cola Co. (Atlanta) to expand its distribution territory in parts of Ohio and West Virginia, and to purchase and operate a manufacturing facility in Twinsburg, OH.

The transactions proposed in the February 2016 letter would provide exclusive distribution rights for the company in a number of northern Ohio and northern West Virginia territories, including major Ohio markets Akron, Elyria, Toledo, Willoughby, and Youngstown County.

Coca-Cola Refreshments USA, a wholly owned subsidiary of Coca-Cola Co, currently serves these territories and owns and operates the Twinsburg manufacturing facility.

"We are continuing to integrate recently-acquired distribution territories," said Frank Harrison, Coca-Cola Consolidated chairman and chief executive, "and [we] look forward to serving new customers, consumers, communities and employees in Ohio and West Virginia."

The company has recently expanded its distribution territory in parts of Tennessee, Kentucky, Indiana, Virginia, Delaware and Maryland, and is working to close a series of transactions for additional distribution territory covered by the previously announced definitive agreement with Coca-Cola Co. from September 2015. It also is continuing to work towards a definitive agreement with Coca-Cola Co. for the remainder of the proposed territory expansion described in the previously announced letter of intent from May 2015, including distribution territories in parts of Ohio, Indiana, Illinois and Kentucky.

Coca-Cola Consolidated recently completed the acquisition of a manufacturing facility in Sandston, VA, and is working to close a series of transactions for two additional facilities in Baltimore and Silver Spring MD, covered by the previously announced definitive agreement with Coca-Cola Co. from October 2015. It also is continuing to work toward a definitive agreement with Coca-Cola Co. for the remainder of the manufacturing facility acquisitions described in the previously announced letter of intent from September 2015, including manufacturing facilities located in Indianapolis and Portland, IN, and Cincinnati, OH.

The transactions proposed in the February 2016 letter of intent are subject to the parties reaching definitive agreements, with transaction closings expected to occur in 2017. There is no assurance that any definitive agreement will be reached, or that those transaction closings will happen. Coca-Cola Consolidated will file a report on Form 8-K with the Securities and Exchange Commission with additional information regarding the proposed territory expansion and acquisition of manufacturing assets and certain other matters addressed in the February 2016 letter. It will be available on the SEC website, www.sec.gov, as well as its corporate site, www.cokeconsolidated.com.

Coca-Cola Bottling Co. Consolidated is the nation's largest independent Coca-Cola bottler.