Coca-Cola Consolidated, Inc. (COKE): BCG Matrix [Dec-2025 Updated]

You're looking at Coca-Cola Consolidated, Inc.'s (COKE) portfolio right now, trying to map where the real cash is flowing and where you absolutely must place your next big bet as we head into late 2025. Honestly, the picture is clear: while the classic Trademark Coca-Cola still pumps out serious cash-over $2,013.8 million in H1 2025-the future growth engine is clearly in high-octane segments like Zero Sugar, which saw 14% volume growth, and the Still category hitting $1,135.2 million in H1 2025. But, you've also got big spending coming-around $300 million in capital expenditure for fiscal year 2025-chasing those Question Marks, while some legacy water packages are seeing strategic pullbacks. Dive in below to see exactly which brands are Stars, which are Cash Cows, and which ones you should probably be looking to divest.

Background of Coca-Cola Consolidated, Inc. (COKE)

You're looking at the landscape for Coca-Cola Consolidated, Inc. (COKE), which stands as the largest Coca-Cola bottler in the United States. This company is a major player, serving approximately 60 million consumers across 14 states and the District of Columbia. They manage an extensive portfolio of beverages from The Coca-Cola Company and other partners, employing around 17,000 teammates as of late 2025.

To set the stage, let's look at the full-year 2024 performance. Coca-Cola Consolidated posted net sales that grew 3.7% to reach $6.9 billion for the fiscal year. Income from operations saw a healthy increase of 10.3%, landing at $920.4 million. Honestly, the gross profit margin improved nicely, hitting 40% for the fourth quarter of 2024, thanks to pricing actions and a favorable shift toward higher-margin sparkling beverages.

Now, looking at the most recent data available, the first quarter of 2025 (which ended March 28, 2025) showed some near-term headwinds. Net sales dipped slightly by 0.7% to $1.58 billion, and income from operations fell by 11.9% to $189.8 million compared to the prior year's first quarter. The gross margin also compressed a bit to 39.7%. Still, management, led by Chairman and CEO J. Frank Harrison, III, generated strong operating cash flow to start the year.

The third quarter of 2025 (ending September 26, 2025) showed a solid rebound, which is what we like to see. For that quarter, net sales were up 6.9% year-over-year, reaching $1.8883 billion, and income from operations grew 8.6% to $246.6 million. Breaking down the beverage categories for that third quarter, the Still category was a standout performer, with net sales increasing 9.9%, while Sparkling bottle/can net sales grew 4.7% over the third quarter of 2024. For the first nine months of 2025, total net sales reached $5.3238 billion.

For the full 2025 fiscal year outlook, the company expected capital expenditures to be approximately $300 million. The company also recently repurchased all outstanding shares held by The Coca-Cola Company in November 2025, a defintely significant corporate action.

Coca-Cola Consolidated, Inc. (COKE) - BCG Matrix: Stars

Stars in the Boston Consulting Group Matrix represent business units or products with a high market share operating within a high-growth market. For Coca-Cola Consolidated, Inc. (COKE), these are the brands and categories demanding significant investment to maintain leadership but which promise to become future Cash Cows when market growth moderates.

Coca-Cola Zero Sugar exemplifies a Star perfectly. The brand is a leader in the zero-sugar segment, which remains a high-growth area driven by consumer preference shifts. For the parent company, Coca-Cola Zero Sugar achieved a significant 14% volume growth, driven by expansion across all geographic operating segments in both the first and second quarters of 2025. This performance underscores its role as a primary growth engine within the core sparkling portfolio that Coca-Cola Consolidated, Inc. (COKE) distributes.

The focus on functional and better-for-you options places several other segments firmly in the Star quadrant, even if the specific volume data for each sub-category is combined in the reports. The overall Still category, which houses these products, shows clear momentum:

• Sports drinks, protein, and enhanced water products led growth within the Still category in Q1 2025.
• Excluding Dasani, net sales for the Still category increased by 1.8% in the first quarter of 2025 for Coca-Cola Consolidated, Inc. (COKE).
• The broader Still category for Coca-Cola Consolidated, Inc. (COKE) generated net sales of $1,135.2 million for the first half of 2025, reflecting a 2.4% net sales growth for the period.
• In the second quarter of 2025, Coca-Cola Consolidated, Inc. (COKE) experienced solid volume growth specifically in its enhanced water, energy and protein products.

The strong pricing power and favorable mix shift, which are necessary to support high-growth brands, are reflected in the overall pricing execution. This is a direct result of successfully shifting the portfolio toward these premium, higher-value offerings. The parent company reported that its price/mix grew by 6% in the second quarter of 2025, driven by pricing actions and the favorable mix shift, which Coca-Cola Consolidated, Inc. (COKE) executes in its territory.

Here's a look at the key financial indicators supporting the Star classification for these growth drivers within the Coca-Cola Consolidated, Inc. (COKE) operating environment as of the first half of 2025:

The high growth rates, such as the 14% for Coca-Cola Zero Sugar, confirm the high market growth axis. The need for continued investment is evident, as these high-growth brands consume substantial cash to maintain placement and promotion, resulting in a net cash flow that is often near neutral, even as they lead revenue generation. Coca-Cola Consolidated, Inc. (COKE) must continue to invest its capital expenditures, which totaled approximately $157 million in the first half of 2025, to ensure these Stars maintain their market share until the market growth slows, positioning them to become Cash Cows.

Coca-Cola Consolidated, Inc. (COKE) - BCG Matrix: Cash Cows

Cash Cows for Coca-Cola Consolidated, Inc. (COKE) are those business units or brands that command a high market share in mature segments, reliably generating more cash than is required for their maintenance. These assets fund the company's broader strategic initiatives.

Trademark Coca-Cola (Original Taste)

The flagship brand maintains a dominant position within the sparkling beverage category, which is characteristic of a mature market leader. This segment was reported to have generated $2,013.8 million in H1 2025 net sales. You should note that while the overall Sparkling bottle/can category saw net sales of $2,013.8 million for the first half of 2025, this core brand drives that revenue base. In the first quarter of 2025, softness in the Trademark Coca-Cola brand was noted, but optimism remained for a rebound as the year progressed. The third quarter of 2025 saw moderating headwinds in demand for Coca-Cola Original Taste, while the broader Sparkling category volume grew by 1.4% in that same quarter.

Core Sparkling Flavors (Sprite, Fanta)

Brands like Sprite and Fanta represent mature, high-share components of the sparkling portfolio. They provide consistent, high-margin revenue streams, even as overall category volume growth remains modest. For instance, in the second quarter of 2025, the increase in Sparkling category sales was driven by pricing and solid growth within zero-sugar and other flavor offerings, partially offsetting the softness in the core Original Taste product. The company is focused on maintaining the productivity of these established lines with minimal promotional spend.

Core Distribution Network

Coca-Cola Consolidated, Inc. functions as the largest U.S. Coca-Cola bottler, and its distribution infrastructure is a critical Cash Cow asset. This expansive network reliably generates high-volume cash flow across its territory. The company serves approximately 60 million consumers across 14 states and the District of Columbia. This scale is maintained and enhanced through significant capital deployment aimed at efficiency.

The operational scale and investment in efficiency are concrete indicators of supporting this Cash Cow:

• The company employs approximately 17,000 teammates.
• For fiscal year 2025, capital expenditures are expected to be approximately $300 million.
• The first half of 2025 saw cash flows from operations reach $406.2 million.

To further support this infrastructure, Coca-Cola Consolidated announced a $90 million investment in a new distribution facility in Columbus, Ohio, designed to handle over 16 million cases of product annually. This investment into supporting infrastructure is designed to improve efficiency and increase cash flow extraction from the existing market base.

Large Take-Home Packages

Sales through large take-home packages in supermarkets and club stores are vital for stable, high-volume cash generation, as consumers often seek value in these formats. While specific package sales data isn't broken out as a distinct BCG unit, the overall performance of the distribution system reflects the strength of these high-volume channels. The company's ability to generate significant operating cash flow, such as $198.2 million in the first quarter of 2025 alone, underscores the reliable intake from these stable sales channels.

Here's a look at the financial flow supporting these Cash Cows:

Coca-Cola Consolidated, Inc. (COKE) - BCG Matrix: Dogs

Dogs are units or products with a low market share and low growth rates. They frequently break even, neither earning nor consuming much cash. Dogs are generally considered cash traps because businesses have money tied up in them, even though they bring back almost nothing in return. These business units are prime candidates for divestiture.

For Coca-Cola Consolidated, Inc. (COKE), the Dog quadrant likely houses certain legacy or low-performing SKUs and channels where market share is low and growth is stagnant or negative, despite overall company revenue growth driven by price/mix and strong brands. You're looking at areas where investment is not yielding sufficient returns, so minimization or exit is the logical next step.

Certain Legacy Bottled Water (e.g., Dasani casepacks)

The strategic shift away from Direct Store Delivery (DSD) for some low-margin, high-volume packages, specifically casepack Dasani water sold in Walmart stores, is a clear indicator of managing a Dog. This operational change directly impacted reported figures. The impact of this distribution change reduced Coca-Cola Consolidated, Inc.'s reported case sales volume by 1.3% during the first quarter of 2025. This action suggests the previous DSD model for this package was inefficient or low-margin, fitting the Dog profile of consuming cash without adequate return.

Underperforming Niche Brands

Legacy products with low market share in slow-growth sub-categories are being streamlined, which is typical for Dog management. While the overall Still category saw net sales increase by 1.8% excluding Dasani in Q1 2025, driven by sports drinks and enhanced water, this implies the remaining portion of the Still category-likely containing these niche brands-is under significant pressure. The overall Still category volume declined 9.0% in Q1 2025 (adjusted for selling days). Also, Coca-Cola Original Taste volume slowed in Q1 2025, and in Q2 2025, Sparkling category volume declined 0.3%, with Coca-Cola Original Taste continuing to be negatively impacted.

Here's a quick look at the volume performance that frames these underperformers:

Small Store Convenience Outlets

Sales performance in certain channels indicates low-growth areas compared to others. Sales in the convenience store channel experienced a slowdown during the second quarter of 2025. This channel is generally considered a lower-growth area when compared to the strong performance noted in supermarkets and value channels during the same period.

On-Premise Locations

Foodservice, which includes on-premise locations like eating and drinking venues, showed signs of lagging performance. Sales in this channel slowed in the second quarter of 2025. This slowdown is noted in contrast to the strong sales momentum observed in retail channels like supermarkets and value channels.

The performance across these areas suggests a focus on divesting or minimizing exposure where volume is declining and margins are thin. You should review the specific contribution to Income from Operations for these product lines; for instance, Income from operations for the entire company decreased 2.7% for the first half of 2025 to $461.9 million.

• Dasani casepack DSD volume reduction: 1.3% in Q1 2025.
• Still category volume decline (Q1 adjusted): 9.0%.
• Coca-Cola Original Taste volume softness noted in Q1 and Q2 2025.
• Convenience store and on-premise sales showed a slowdown in Q2 2025.

Finance: draft 13-week cash view by Friday.

Coca-Cola Consolidated, Inc. (COKE) - BCG Matrix: Question Marks

QUESTION MARKS represent business units operating in high-growth markets but currently holding a low relative market share. For Coca-Cola Consolidated, Inc. (COKE), these areas demand significant cash infusion to capture market share quickly, or risk becoming Dogs. These are the growth engines that haven't yet proven their long-term dominance.

Energy Drinks (e.g., Monster, NOS, Full Throttle)

This segment is characterized by high category growth, but COKE's position is as a distributor, not the primary brand owner, meaning relative share is dictated by the success of the brands they carry against competitors. The performance of key brands within this space shows traction, indicating the market is active and worth the investment focus.

• Monster achieved volume growth in the third quarter of 2025.
• Powerade delivered positive results in the third quarter of 2025.
• Powerade volume grew in the third quarter of 2025.

New Product Innovations and Functional Beverages in the Still Category

This area encompasses new brand introductions and functional beverages within the Still category, which requires substantial capital to scale distribution and consumer awareness. The commitment to future growth is evident in the planned capital outlay.

The expected capital expenditure for fiscal year 2025 is approximately $300 million. This investment is critical to building share in these emerging segments.

Performance within the broader Still category shows mixed signals, suggesting some new/functional products are gaining traction while others lag:

Coffee and Tea Portfolio

While the overall Still category volume saw a decline in the first half of 2025, specific components show high-growth potential, demanding focused marketing investment to secure a larger relative share. The parent company data suggests where the growth levers are being pulled:

• The ready-to-drink (RTD) tea portfolio saw Fuze Tea growing retail value five times the industry average year-to-date (as of Q3 2025).
• Coffee grew 2% globally (Q3 2025 context).
• The combined Water, sports, coffee and tea segment was even in unit case volume for the second quarter of 2025.

The Still category net sales for the second quarter of 2025 were $626.1 million. This segment needs to convert its high-growth potential into consistent volume gains to move out of the Question Mark quadrant.

Digital and E-commerce Distribution

This channel is inherently high-growth, requiring investment in technology and logistics to compete effectively. While COKE-specific digital spend is not detailed, the parent company's aggressive digital shift provides context for the required investment level.

The parent company has shifted roughly 65% of its marketing spend to digital channels, supported by AI-driven personalization. On the operational side, AI tools have helped cut downtime by 20% through predictive maintenance, and route optimization has shaved off 8% in fuel use. The parent company is increasing investments in e-commerce to support retail and meal delivery services.

For Coca-Cola Consolidated, Inc. (COKE), these investments are necessary to build out the logistics and technology infrastructure to capture share against pure-play online competitors, ensuring their physical distribution network is optimized for the digital consumer journey.