Coca-Cola Consolidated, Inc. (Coke): Analyse de Pestle [Jan-2025 Mise à jour]

Plongez dans le monde complexe de Coca-Cola Consolidated, Inc. (COKE), où la dynamique du marché complexe se croit avec des défis stratégiques dans les paysages politiques, économiques, sociaux, technologiques, juridiques et environnementaux. Cette analyse complète du pilon dévoile les pressions et les opportunités à multiples facettes qui façonnent l'une des sociétés de boissons les plus emblématiques d'Amérique, révélant comment les tendances mondiales, les environnements réglementaires et les attentes des consommateurs transforment continuellement leur stratégie commerciale. De la navigation sur les préférences des consommateurs changeantes à la gestion des innovations technologiques et des défis de durabilité, le parcours de Coke représente un microcosme fascinant de la résilience et de l'adaptation des entreprises modernes dans l'industrie des boissons compétitives.

Coca-Cola Consolidated, Inc. (Coke) - Analyse du pilon: facteurs politiques

Les réglementations de l'industrie des boissons américaines ont un impact sur les stratégies de distribution et de marketing

La Food and Drug Administration (FDA) applique des exigences d'étiquetage strictes pour les boissons. En 2023, les sociétés de boissons doivent se conformer aux mises à jour du panel de faits nutritionnelles qui sont entrées en vigueur en janvier 2020.

Zone de conformité réglementaire	Exigences spécifiques
Étiquetage de la nutrition	Exigences de taille de service mises à jour, divulgation de sucre ajouté obligatoire
Transparence des ingrédients	Liste complète des ingrédients avec des quantités précises

Politiques commerciales potentielles affectant l'approvisionnement mondial sur les ingrédients

En 2024, les tarifs américains sur les ingrédients importés restent significatifs:

• Les tarifs d'importation de sucre se situent entre 22,5 et 35,74 cents par kilogramme
• L'aluminium peut importer des tarifs d'environ 10% de certains pays
• Tarifs supplémentaires potentiels sur les matériaux d'emballage des fournisseurs internationaux

Fiscalité locale et étatique sur les boissons sucrées

État	Taux d'imposition des boissons sucrées
Californie	Aucune taxe à l'échelle de l'État
Philadelphie	1,5 cents par once
Seattle	1,75 cents par once

Pression gouvernementale pour des options de boissons plus saines

Métriques réglementaires clés:

• CDC rapporte 42,4% des adultes américains classés comme obèses en 2021
• La FDA recommande une consommation de sucre ajoutée quotidienne en dessous de 10% du total des calories
• MANDATS SUPPORT DE LA PROPARCY

Les Centers for Disease Control and Prevention (CDC) continuent de suivre les modèles de consommation de boissons, avec des recommandations en cours pour une réduction de l'apport en sucre.

Coca-Cola Consolidated, Inc. (Coke) - Analyse du pilon: facteurs économiques

Les coûts de matières premières fluctuants ont un impact sur les dépenses de production

En 2023, Coca-Cola Consolidated, Inc. a connu des variations de coût de matières premières importantes:

Matière première	Augmentation des prix (%)	Impact sur le coût de la production
Sucre	12.4%	0,037 $ par unité
Canettes en aluminium	8.7%	0,052 $ par boîte
Bouteilles en plastique	6.3%	0,024 $ par bouteille

Modèles de dépenses de consommation sur les marchés des boissons

Données sur les dépenses des boissons aux consommateurs pour 2023:

Catégorie de boissons	Taille du marché ($)	Croissance d'une année à l'autre (%)
Boissons non alcoolisées	465,2 milliards de dollars	3.7%
Boissons gazeuses gazeuses	192,6 milliards de dollars	1.9%
Boissons énergisantes	86,4 milliards de dollars	5.3%

Effets potentiels de la récession économique

Consommation des boissons pendant le ralentissement économique potentiel:

• Taux de trafic de consommation projeté: 14,6%
• Réduction du volume attendu: 3,2%
• Augmentation prévue de la sensibilité aux prix: 22,7%

Volatilité des taux de change

Impact de taux de change international en 2023:

Paire de devises	Volatilité des taux de change (%)	Impact des revenus ($)
USD / EUR	6.3%	14,2 millions de dollars
USD / GBP	5.7%	9,6 millions de dollars
USD / CAD	4.9%	7,3 millions de dollars

Coca-Cola Consolidated, Inc. (Coke) - Analyse du pilon: facteurs sociaux

Changement des préférences des consommateurs vers des options de boissons plus saines et à faible teneur en sucre

Selon Statista, le marché mondial des boissons à faible teneur en sucre était évalué à 30,2 milliards de dollars en 2022 et devrait atteindre 46,7 milliards de dollars d'ici 2027. Coca-Cola Consolidated a répondu avec 38% de son portefeuille .

Catégorie de boissons	Part de marché	Taux de croissance
Boissons à faible teneur en sucre	38%	7,2% par an
Boissons à sucre zéro	22%	9,5% par an

Demande croissante de gammes de produits durables et respectueuses de l'environnement

En 2023, Coca-Cola Consolidated a déclaré avoir investi 52,3 millions de dollars dans des initiatives d'emballage durables. 67% de leur emballage est désormais recyclable, dans le but d'atteindre 100% d'ici 2030.

Métrique de la durabilité	État actuel	Année cible
Emballage recyclable	67%	2030
Investissement dans la durabilité	52,3 millions de dollars	2023

Modification des modèles de consommation démographique dans différents groupes d'âge

Les données de Nielsen montrent que les consommateurs Gen Z et Millennial représentent 48% du marché actuel des boissons de Coca-Cola Consolidated, avec une préférence pour les boissons fonctionnelles et axées sur la santé.

Groupe d'âge	Représentation du marché	Type de boisson préféré
Gen Z	24%	Boissons fonctionnelles
Milléniaux	24%	Boissons axées sur la santé

Augmentation de la conscience de la santé affectant les stratégies de développement de produits

En 2023, Coca-Cola Consolidated a lancé 12 nouvelles lignes de boissons axées sur la santé, ce qui représente un investissement de 78,6 millions de dollars dans l'innovation de produits ciblant les consommateurs soucieux de leur santé.

Innovation de produit	Nombre de nouvelles lignes	Investissement
Boissons axées sur la santé	12	78,6 millions de dollars

Coca-Cola Consolidated, Inc. (Coke) - Analyse du pilon: facteurs technologiques

Technologies de fabrication et d'automatisation avancées

En 2023, Coca-Cola Consolidated a investi 42,3 millions de dollars dans les technologies de l'automatisation de la fabrication. La société a déployé 37 nouvelles lignes d'embouteillage robotiques dans ses installations de production, augmentant l'efficacité de la production de 22,6%.

Type de technologie	Investissement ($ m)	Amélioration de l'efficacité (%)
Systèmes d'embouteillage robotiques	24.7	18.3
Lignes d'emballage automatisées	12.5	15.9
Systèmes de contrôle de la qualité d'IA	5.1	8.4

Plateformes de marketing numérique et de commerce électronique

La société a déclaré 67,2 millions de dollars de dépenses de marketing numérique en 2023, avec des ventes de commerce électronique atteignant 214,5 millions de dollars, ce qui représente une croissance de 31,7% d'une année sur l'autre.

Canal numérique	Revenus ($ m)	Taux de croissance (%)
Ventes d'applications mobiles	89.6	27.3
Plateformes de vente au détail en ligne	76.9	36.2
Marketing des médias sociaux	48.3	22.5

Analyse des données pour le comportement des consommateurs

Coca-Cola Consolidated a alloué 18,7 millions de dollars aux technologies avancées d'analyse des données en 2023, permettant une modélisation prédictive du comportement des consommateurs avec une précision de 84,3%.

Technologie d'analyse	Investissement ($ m)	Précision de la prédiction (%)
Modèles d'apprentissage automatique	9.2	86.5
Informations sur les consommateurs prédictifs	6.5	82.1
Analyse des tendances du marché en temps réel	3.0	81.7

Technologies intelligentes d'emballage et de suivi

La société a investi 22,6 millions de dollars dans Smart Packaging Technologies, mettant en œuvre le suivi du code QR sur 64% des gammes de produits, réduisant les inefficacités de la chaîne d'approvisionnement de 17,5%.

Technologie de suivi	Investissement ($ m)	Couverture (%)	Amélioration de l'efficacité (%)
Suivi du code QR	12.3	64	17.5
Gestion des stocks RFID	7.2	42	14.6
Capteurs de la chaîne d'approvisionnement IoT	3.1	29	11.3

Coca-Cola Consolidated, Inc. (Coke) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations de production et d'étiquetage des boissons de la FDA

En 2023, Coca-Cola Consolidated a engagé 3,2 millions de dollars en frais de conformité réglementaire liés aux normes de production des boissons FDA. L'entreprise a maintenu une conformité à 100% avec les réglementations de fabrication des aliments 21 CFR Part 110.

Métrique de la conformité réglementaire	2023 données
Fréquence d'inspection de la FDA	4 inspections annuelles
Taux de conformité	99.8%
Étiquetage des instances de violation	2 corrections mineures
Investissement de conformité	$3,200,000

Protection de la propriété intellectuelle

Coca-Cola Consolidated Held 17 inscriptions de marque active en 2023, avec une évaluation totale du portefeuille de propriété intellectuelle de 42,5 millions de dollars.

Catégorie de protection IP	2023 statistiques
Inscriptions de la marque	17
Demandes de brevet	3
Valeur du portefeuille IP	$42,500,000
Dépenses légales de protection IP	$1,750,000

Règlement sur la conformité environnementale et la gestion des déchets

La société a investi 5,6 millions de dollars dans les initiatives de conformité environnementale en 2023, atteignant 92% de réduction des déchets et répondant aux normes de gestion des déchets de l'EPA.

Métrique de la conformité environnementale	2023 données
Investissement de la conformité environnementale	$5,600,000
Pourcentage de réduction des déchets	92%
Taux de conformité de la réglementation de l'EPA	100%
Initiatives de durabilité	7 programmes majeurs

Risques potentiels en matière de litige

En 2023, Coca-Cola Consolidated Face 3 réclamations juridiques liées au produit, avec des dépenses totales liées aux litiges de 1,2 million de dollars.

Catégorie de risque de contentieux	2023 statistiques
Réclamations juridiques totales	3
Frais de litige	$1,200,000
Réclamation réglée	2
Réclamations en attente	1

Coca-Cola Consolidated, Inc. (Coke) - Analyse du pilon: facteurs environnementaux

Initiatives d'emballage et de recyclage durables

En 2024, Coca-Cola Consolidated s'est engagée dans les objectifs d'emballage suivants:

Objectif d'emballage	Année cible	Progrès actuel
Emballage recyclable	2025	Emballage 100% recyclable
Contenu recyclé dans l'emballage	2030	50% de matériaux recyclés
Réduction du plastique	2024	Réduction de 20% de l'utilisation du plastique vierge

Conservation de l'eau et efficacité dans les processus de production

Mesures d'efficacité de l'eau pour les installations de production consolidées Coca-Cola:

Métrique de gestion de l'eau	2024 performance
Rapport d'utilisation de l'eau	1,39 litres d'eau par litre de boissons produites
Total d'eau économisée	3,2 milliards de litres par an
Traitement des eaux usées	98,6% des eaux usées traitées et retournées dans l'environnement

Réduire l'empreinte carbone de la fabrication et de la distribution

Stratégies de réduction des émissions de carbone:

Initiative de gestion du carbone	Cible 2024	État actuel
Portée 1 & 2 Réduction des émissions	Réduction de 25% d'ici 2030	Une réduction de 12,4% obtenue
Électrification de la flotte	30% véhicules électriques	18% de véhicules de livraison électrique
Efficacité énergétique	Amélioration de 15%	10,2% de gains d'efficacité énergétique

Adoption des énergies renouvelables dans les opérations d'entreprise

Détails de mise en œuvre des énergies renouvelables:

Source d'énergie renouvelable	Capacité installée	Pourcentage d'énergie totale
Énergie solaire	12,5 MW	7.3%
Énergie éolienne	8,2 MW	4.6%
Énergie renouvelable totale	20,7 MW	11.9%

Coca-Cola Consolidated, Inc. (COKE) - PESTLE Analysis: Social factors

Accelerating consumer shift from full-sugar sodas to zero-sugar, sparkling water, and energy drinks.

You are seeing a fundamental, permanent shift in consumer preference away from high-calorie, full-sugar Carbonated Soft Drinks (CSD) toward healthier alternatives. This is a massive headwind for the traditional core business, but it's also a clear opportunity for Coca-Cola Consolidated, Inc. (COKE) in distribution. The global zero-sugar beverages market is projected to reach a value of $4.35 billion in 2025, and it's forecast to grow at a Compound Annual Growth Rate (CAGR) of 14.7% through 2035.

The good news is that COKE is positioned to capture this growth through The Coca-Cola Company's portfolio. For instance, the global volume of the flagship Coca-Cola Zero Sugar was up 14% in recent quarters (Q3 2025 context), and it holds a dominant market share exceeding 50% in the zero-sugar cola category in key markets.

Here's the quick math: while the US sugar-free drinks market is projected at $12.24 billion in 2025, COKE's job is to ensure the supply chain is ready to deliver these higher-margin products efficiently to offset volume declines in the legacy full-sugar category.

Health and wellness trends pressure the core carbonated soft drink (CSD) category volume.

The intense focus on health and wellness continues to pressure the volume of core CSDs, forcing the entire industry to pivot. Consumers are actively seeking functional benefits (like gut health, immunity, and energy) from their beverages. This is not just about cutting sugar; it's about demanding more from a drink.

The data clearly shows this demand: 58% of consumers are willing to pay more for healthier alternatives, and 32% express interest in functional CSD innovations, like prebiotic sodas.

To be fair, CSD dollar sales are holding up in North America, projected to grow by 2.5% in 2025, but this is mainly driven by strategic pricing and the premiumization of the portfolio, not volume growth. For a bottler like COKE, this means revenue relies less on sheer volume and more on successfully distributing the higher-priced, healthier products, like enhanced water and functional energy drinks, which are estimated to be a $5.26 billion market in North America in 2025.

Demand for smaller, more convenient packaging sizes (e.g., 7.5 oz cans) increases production complexity.

Consumers want portion control and convenience, leading to soaring demand for smaller packaging sizes, which are often sold at a price premium. The Coca-Cola Company is responding by launching individual 7.5-ounce mini cans in North American convenience stores starting January 1, 2026, with a suggested retail price of $1.29 per can.

This shift to a wider variety of smaller Stock Keeping Units (SKUs)-from 7.5 oz cans to 12 oz sleek cans-significantly increases the complexity and changeover time on COKE's bottling and packaging lines. Smaller cans also mean more units per pallet, demanding better load containment and packaging efficiency. COKE proactively addressed this by implementing the MUST Stretch Management System across 64 stretch wrapping lines in 2024 to optimize the handling of over 6 million loads, directly mitigating the complexity cost.

Also, the push for sustainability favors aluminum cans, which are projected to hold a dominant market share of approximately 76.2% by 2025 in the global drink cans segment, further cementing the need for specialized canning operations.

Labor shortages in distribution and warehouse roles push up wage costs in key markets.

The tight labor market in logistics is a major operational risk, directly impacting COKE's Selling, Distribution, and Administrative (SD&A) expenses. Labor costs are already a significant portion of COKE's operating expenses.

The competition for talent is intense, with over 320,000 unique job openings posted in the US warehouse and light industrial sectors between December 2024 and April 2025.

This shortage translates directly into wage inflation:

• The national average hourly pay for a Coca-Cola Warehouse worker is $18.24 as of November 2025.
• In high-cost coastal cities, general warehouse workers average $22-$25 per hour.
• Broad economic forecasts suggest budgeting for 3-4% annual wage growth in the logistics sector.

This pressure means COKE must invest more in retention and automation to maintain its distribution efficiency, especially in high-growth markets like Texas and Florida, where job openings have surged.

Coca-Cola Consolidated, Inc. (COKE) - PESTLE Analysis: Technological factors

Significant investment in supply chain automation to improve efficiency and reduce labor costs.

You can't run a massive bottling and distribution network across 14 states and Washington, D.C., without serious tech investment. For the 2025 fiscal year, Coca-Cola Consolidated expects capital expenditures to be approximately $300 million, with a significant portion dedicated to supply chain optimization and future growth initiatives. This isn't just buying new trucks; it's a deep dive into automation to combat rising labor costs and complexity.

In the first half of 2025 alone, the company invested about $157 million in capital expenditures, a clear sign of their commitment to modernizing their infrastructure. This focus on automation helps move products faster and with fewer errors, which is critical when you're managing over 300 brands and flavors.

Use of predictive analytics to optimize delivery routes, saving on fuel and driver time.

The days of static delivery routes are long gone. Coca-Cola Consolidated uses advanced predictive analytics and real-time visibility platforms to optimize its vast distribution network. This technology monitors traffic, weather, and real-time demand to build the most efficient routes possible, reducing miles driven and, consequently, fuel costs.

This commitment to real-time tracking and data analytics has a direct, measurable impact on service. The company has improved its delivery rate to over 99% by tracking trucks in real time and leveraging this data to streamline operations. Predictive analytics also helps identify operational bottlenecks, like long dwell times at delivery locations, allowing for proactive adjustments.

• Optimize routes based on real-time traffic and demand.
• Reduce fuel consumption and driver time per route.
• Improve on-time delivery rate to over 99%.

E-commerce and direct-to-consumer (DTC) channels require complex, defintely smaller-scale logistics.

The shift in consumer buying behavior, accelerated by the pandemic, means the supply chain must handle two very different logistics models: the traditional high-volume, direct-store delivery (DSD) to large retailers and the newer, smaller-scale logistics for e-commerce and direct-to-consumer (DTC) orders. The latter requires a more granular, flexible, and automated approach to fulfillment, often dealing with individual cases or smaller packs instead of full pallets.

This complexity in managing smaller-scale logistics is a key challenge. It demands more sophisticated warehouse management and order-picking systems to maintain profitability on lower-volume orders. The strategic imperative is to ensure the technology stack can handle both the massive scale of traditional bottling and the high-touch, smaller-parcel requirements of online sales.

Advanced bottling technology increases throughput, supporting an operating margin near 13.1%.

Advanced bottling and warehouse technology directly translates into higher throughput (production volume) and lower cost-to-serve, which is why the company's profitability remains strong. The use of semi-automated warehouse systems, such as the Vertique system, boosts productivity, efficiency, and accuracy in moving finished goods.

Here's the quick math: higher line speeds and fewer errors mean more product gets out the door with less waste and labor. This efficiency is a major contributor to the company's strong financial performance. For the third quarter of 2025, Coca-Cola Consolidated reported an operating margin of 13.1%, a 20 basis point increase over the prior year's quarter, demonstrating the ongoing success of these operational improvements.

Technological Focus Area (2025)	Key Technology/System	Quantifiable Impact/Metric
Supply Chain Optimization & Investment	Capital Expenditures (CapEx)	Expected 2025 CapEx: Approximately $300 million
Delivery & Logistics Efficiency	Predictive Analytics & Real-Time Visibility (e.g., FourKites)	Improved delivery rate to over 99%
Warehouse Automation & Throughput	Vertique System (Semi-Automated Warehousing)	Supports a Q3 2025 Operating Margin of 13.1%
Digital Planning & Data Analytics	AI-Powered Logistics Solutions	Reduces fuel costs and improves delivery accuracy

What this estimate hides is the continuous need for software integration across different systems, but the core action is clear: Finance needs to keep funding the CapEx pipeline to maintain this technological edge.

Coca-Cola Consolidated, Inc. (COKE) - PESTLE Analysis: Legal factors

Strict FDA Labeling Requirements for New Ingredients and Nutritional Information

The regulatory environment for beverage labeling is tightening, and for Coca-Cola Consolidated, this means a constant audit of thousands of SKUs (Stock Keeping Units). The U.S. Food and Drug Administration (FDA) announced a major update to its General Food Labeling Requirements Compliance Program in June 2025, the first overhaul since 2010. This signals a much stricter inspection regime for domestic and imported foods, including beverages.

The immediate focus is on two key areas: the full compliance with the 2016 Nutrition Facts label revisions, which mandate the clear declaration of Added Sugars, and the incorporation of sesame as the ninth major allergen under the FASTER Act. While the FDA set a uniform compliance date of January 1, 2028, for new labeling regulations published in 2025, you defintely need to move faster. Here's the quick math: a product line shift to low-sugar options, a core strategy for COKE, requires constant label review to avoid costly recalls or fines.

• Audit all labels to declare Sesame as a major allergen.
• Confirm Added Sugars section is fully compliant with 2016 FDA format.
• Ensure new product labels align with the January 1, 2028, uniform compliance date for any new 2025-2026 rules.

Antitrust Scrutiny on Distribution Agreements and Market Dominance in the US Southeast

Coca-Cola Consolidated operates an expansive and dominant distribution network across 14 U.S. states and the District of Columbia. This scale, while a competitive advantage, inherently draws antitrust scrutiny, particularly from federal and state regulators concerned with market dominance and fair competition. The complex web of distribution coordination agreements, such as those with Monster Beverage Corporation, are constantly under review.

Any perceived anti-competitive behavior-like exclusive shelf-space agreements or predatory pricing in local markets-could trigger a major investigation. The risk isn't just fines; it's the potential for mandated changes to the bottling and distribution structure, which would fundamentally disrupt COKE's operating model and its first-half 2025 income from operations of $461.9 million. The key is to maintain a clear separation and documented justification for all territorial and product-specific distribution agreements to demonstrate pro-competitive benefits.

Litigation Risk Tied to Product Liability and Environmental Claims, Particularly Around Water Usage

Environmental, Social, and Governance (ESG) litigation, often called 'greenwashing' claims, is a major near-term financial risk. In late 2024, the D.C. Court of Appeals ruled that The Coca-Cola Company (the franchisor) must face a lawsuit alleging deceptive marketing over its sustainability claims. This ruling makes aspirational statements actionable, meaning COKE, as a key part of the system, is exposed to similar claims regarding its packaging and environmental impact.

The primary litigation flashpoint is packaging. The Coca-Cola system had a goal to make packaging 100% recyclable by 2025, a statement now being used in court to argue consumer deception if the company hasn't made sufficient progress. In May 2025, the global company agreed to change or remove some misleading recycling claims in the EU, a clear signal of the legal pressure. Water usage is another constant liability. While the Coca-Cola system globally returned 163% of the water used in finished beverages to nature in 2024, this aggregate number is scrutinized against local water stress in the 200+ high-risk basins where the company operates.

Legal Risk Area	2025 Status/Trigger	Potential Financial Impact (Qualitative)
Greenwashing Litigation (Packaging)	D.C. Court of Appeals revived lawsuit against franchisor (late 2024) targeting 100% recyclable by 2025 goal.	Significant legal defense costs, brand damage, and mandated marketing/labeling changes.
FDA Labeling Compliance	FDA major compliance program update (June 2025) focusing on Added Sugars and Sesame allergen.	Fines, product recalls, and high costs for retooling packaging and inventory.
Water Usage Claims	Global system returned 163% of water in 2024, but local scrutiny remains high in high-risk basins.	Fines for water use violations, mandatory infrastructure investment, and operational limits in drought-prone areas.

Compliance Costs for State and Local Recycling and Bottle Deposit Schemes are Rising

The legislative trend in the U.S. is shifting the financial burden of packaging waste from municipalities to producers, known as Extended Producer Responsibility (EPR) schemes. This directly impacts Coca-Cola Consolidated's cost of goods sold and capital expenditure. The most immediate threat is the resurgence of bottle deposit schemes (Bottle Bills).

For example, Washington State's House Bill 1607, which was in Rules as of March 2025, proposes a new $0.10 deposit system for beverage containers. This type of legislation requires beverage producers to fund and operate a new collection and recycling infrastructure through a Producer Responsibility Organization (PRO). The projected compliance costs for all beverage container producers in Washington State alone could reach 'hundreds of millions' of dollars annually by 2028. This is a clear, rising operational drag on profitability, forcing COKE to either absorb the cost or pass it on to consumers, which creates price elasticity risk.

Coca-Cola Consolidated, Inc. (COKE) - PESTLE Analysis: Environmental factors

Pressure to meet the goal of using recycled content in plastic packaging

The push for circularity in packaging is a direct, measurable cost and operational risk for Coca-Cola Consolidated, Inc. The Coca-Cola Company system has ambitious, though recently revised, targets that directly impact your procurement and manufacturing processes. The global goal is to use 35% to 40% recycled material in primary packaging by 2035, specifically aiming for 30% to 35% recycled plastic (rPET) content globally.

To put this in perspective, the system's global use of rPET in its PET bottles was only 18% in 2024. The gap between the current rate and the 2035 target is substantial and requires massive investment in new recycling infrastructure and sourcing, which drives up the cost of rPET feedstock. This is not a distant problem; it's a near-term supply chain constraint that affects your gross margin, which was 40.0% in the second quarter of 2025.

• 2024 rPET Use: 18% of PET used was recycled PET (rPET).
• 2035 Global Target: 30% to 35% recycled plastic content.
• Challenge: Securing consistent, food-grade rPET supply in the US.

High water consumption in bottling operations faces increasing scrutiny in drought-prone regions

Water is your primary ingredient, so its scarcity is a critical business risk, especially in the US regions where you operate. The Coca-Cola System's water use ratio-the liters of water used to produce one liter of beverage-was 1.78 liters of water per liter of beverage in 2024. While this represents a 10% efficiency improvement since 2015, the absolute volume of water withdrawn remains a point of scrutiny, particularly in the US Southwest and other drought-prone areas.

The system is committed to returning 100% of the total water used in each of its over 200 high-risk locations globally by 2035. For COKE, this means significant capital expenditure on water treatment and replenishment projects in local watersheds to maintain your social license to operate. Honestly, if a major drought forces production cuts at even one facility, the impact on your $1,855.5 million in Q2 2025 net sales will be immediate and painful.

Scope 3 emissions (from the value chain) are a focus for investor ESG reporting

For a bottler, the vast majority of your carbon footprint is not from your plants (Scope 1 and 2), but from your value chain (Scope 3). This includes the production of your packaging and ingredients, and the refrigeration units you place in stores. For The Coca-Cola Company system, Scope 3 emissions account for over 90% of the total greenhouse gas (GHG) footprint. Over 60% of these indirect emissions are tied to packaging, ingredients, and refrigeration.

Investors are defintely scrutinizing your progress against the system's goal to reduce Scope 1, 2, and 3 emissions in line with a 1.5°C trajectory by 2035. The challenge is that COKE must influence hundreds of suppliers-from resin producers to sugar farmers-to meet a target that is primarily their emissions. This is a huge coordination effort that requires both capital and leverage.

GHG Scope	Source of Emissions	System-Wide Significance	2035 Target
Scope 1 & 2	Direct operations (e.g., plants, fleet fuel)	Less than 10% of total footprint	Reduce in line with 1.5°C trajectory (from 2019 baseline)
Scope 3	Value chain (packaging, ingredients, coolers)	Over 90% of total footprint	Reduce in line with 1.5°C trajectory (from 2019 baseline)

Waste management costs increase with stricter landfill and recycling regulations

The regulatory landscape for waste management is shifting dramatically in the US, moving from municipal responsibility to Extended Producer Responsibility (EPR). EPR laws mandate that producers, like Coca-Cola Consolidated, pay fees to fund the collection and recycling of their packaging. This is a direct, new operating cost that hits your Selling, Delivery, and Administrative (SD&A) expenses, which were 25.4% of net sales in Q2 2025.

The first wave of these US state laws is hitting now: Oregon's EPR law took effect on July 1, 2025. Plus, Colorado and Maine's laws follow in 2026, and California's, which is one of the most ambitious, follows in 2027. California's law alone requires producers to provide $5 billion over ten years to support recycling systems. This patchwork of state regulations means compliance costs and administrative complexity are rising fast.

Here's the quick math: If your fuel costs rise by just 10% in the 2025 fiscal year, that's a multi-million-dollar headwind that must be offset by price or efficiency.

Next Step: Operations: Quantify the cost of compliance for the new Oregon EPR law, including Producer Responsibility Organization (PRO) fees, and forecast the 2026 budget impact by the end of the quarter.