Coca-Cola Bottling Co. Consolidated Announces Signing of Letter of Intent with The Coca-Cola Company for Expansion of Franchise

  Coca-Cola Bottling Co. Consolidated Announces Signing of Letter of Intent
  withThe Coca-Cola Company for Expansion of Franchise Territory

Business Wire

CHARLOTTE, N.C. -- April 16, 2013

Coca-Cola Bottling Co. Consolidated (NASDAQ: COKE) (the “Company”) today
announced that it has signed a non-binding letter of intent with The Coca-Cola
Company to expand the Company’s franchise territory. The letter of intent
provides additional distribution rights for the Company in parts of Tennessee
and Kentucky which include major markets, Knoxville, TN and Lexington and
Louisville, KY. Coca-Cola Refreshments USA, Inc. (“CCR”), a wholly owned
subsidiary of The Coca-Cola Company, currently serves this territory.

The proposed transaction for acquiring distribution rights to the expanded
territory will be accomplished by a sub-bottling arrangement with CCR under
which the Company would make ongoing payments to CCR in exchange for the
exclusive distribution rights in the territory. CCR would also transfer its
rights in the territory to distribute brands not owned by
TheCoca-ColaCompany to the Company as part of the transaction. In addition
to territory rights, the Company would also acquire distribution assets and
certain working capital from CCR relating to the expanded territory. The
Company would not acquire any production assets from CCR. The new territory
will be covered by a new form of comprehensive beverage agreement between the

J. Frank Harrison, III, Chairman and CEO, said, “We are very excited about
this growth opportunity for our Company, The Coca-Cola Company and the U.S.
Coca-Cola System. Working closely with TheCoca-ColaCompany and our U.S.
bottling partners, we believe that we are well positioned to help drive
increased value in the Coke System.”

Hank Flint, President and COO, added, “We have worked very collaboratively
with TheCoca-ColaCompany and other proposed expanding bottlers to create the
opportunity for U.S. System alignment and value creation for customers and
consumers. The proposed transaction provides us with a unique opportunity to
leverage our strengths as the local Coca-Cola bottler in the many communities
we serve.”

This proposed transaction with The Coca-Cola Company is subject to the parties
reaching definitive agreements by the end of 2013 with closing of the
transaction expected during the latter part of 2014. There is no assurance,
however, that the definitive agreements will be reached and the closing of the
proposed transaction will occur. The Company will file a report on Form 8-K
with the Securities and Exchange Commission regarding the proposed transaction
that will be available on the Commission’s web site at and
on the Company’s web site at

Cautionary Information Regarding Forward-Looking Statements

Included in this news release and other information that we make publicly
available from time to time are forward-looking management comments and other
statements that reflect management’s current outlook for future periods. These
statements include, among others, statements regarding potential opportunities
for and our commitment and focus on profitably growing our business as well as
our plans for continuing to innovate and evolve packaging and marketing
strategies to respond to ever-changing consumer tastes.

These statements and expectations are based on currently available
competitive, financial and economic data along with our operating plans and
are subject to future events and uncertainties that could cause anticipated
events not to occur or actual results to differ materially from historical or
anticipated results. Among the events or uncertainties which could adversely
affect future periods are: lower than expected selling pricing resulting from
increased marketplace competition; changes in how significant customers market
or promote our products; changes in our top customer relationships; changes in
public and consumer preferences related to nonalcoholic beverages; unfavorable
changes in the general economy; miscalculation of our need for infrastructure
investment; our inability to meet requirements under beverage agreements;
material changes in the performance requirements for marketing funding support
or our inability to meet such requirements; decreases from historic levels of
marketing funding support; changes in TheCoca-ColaCompany’s and other
beverage companies’ levels of advertising, marketing and spending on brand
innovation; the inability of our aluminum can or plastic bottle suppliers to
meet our purchase requirements; our inability to offset higher raw material
costs with higher selling prices, increased bottle/can sales volume or reduced
expenses; consolidation of raw material suppliers could impact our
profitability; increased purchases of finished goods subject us to incremental
risks that could impact our profitability; sustained increases in fuel costs
or our inability to secure adequate supplies of fuel; sustained increases in
workers’ compensation, employment practices and vehicle accident claims costs;
sustained increases in the cost of employee benefits; product liability claims
or product recalls; technology failures; changes in interest rates; the impact
of debt levels on operating flexibility and access to capital and credit
markets; adverse changes in our credit rating (whether as a result of our
operations or prospects or as a result of those of TheCoca-ColaCompany or
other bottlers in the Coca-Cola system); changes in legal contingencies;
legislative changes affecting our distribution and packaging; adoption of
significant product labeling or warning requirements; additional taxes
resulting from tax audits; natural disasters and unfavorable weather; global
climate change or legal or regulatory responses to such change; issues
surrounding labor relations; bottler system disputes; our use of estimates and
assumptions; changes in accounting standards; impact of obesity and health
concerns on product demand; public policy challenges regarding the sale of
soft drinks in schools; the impact of volatility in the financial markets on
access to the credit markets; the impact of acquisitions or dispositions of
bottlers by their franchisors; and the concentration of our capital stock
ownership. The forward-looking statements in this news release should be read
in conjunction with the more detailed descriptions of the above factors
located in our Annual Report on Form 10-K for the year ended December 30, 2012
under Part I, Item 1A “Risk Factors” as well as those additional factors we
may describe from time to time in other filings with the Securities and
Exchange Commission. Except as required by law, the Company undertakes no
obligation to update or revise any forward-looking statements contained in
this release as a result of new information or future events or developments.

                              —Enjoy Coca-Cola—


Coca-Cola Bottling Co. Consolidated
Media Contact:
Lauren C. Steele, 704-557-4551
Senior VP - Corporate Affairs
Investor Contact:
James E. Harris, 704-557-4582
Senior VP – Shared Services & CFO
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