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Consumer Defensive

Coca-Cola Consolidated, Inc. (COKE)

Consumer Defensive $14.2B market cap

Data as of July 16, 2026

Environment
58.00
People
72.00
Leadership
65.00

Environment story

Coca-Cola Consolidated demonstrates weak environmental governance with significant exposure to commodity-driven emissions volatility and undisclosed Scope 3 climate targets. The company's 10-K acknowledges material climate change risks including tariff-driven aluminum cost spikes, supply chain disruption hazards, and consumer preference shifts toward lower-carbon products, yet provides no disclosed net-zero commitment year, no Scope 1/2/3 emissions baselines, and no verified renewable electricity percentage. Material deductions applied for greenwashing risk: company emphasizes fuel-hedging and supply-chain optimization but omits quantitative emissions reduction pathways, carbon intensity targets, or credible decarbonization infrastructure investments. The company relies on concentrate suppliers (The Coca-Cola Company) for upstream sustainability strategy, limiting operational control. Climate-related litigation and water-use restriction risks are identified but not quantified.

Criticisms on file

  • Undisclosed Greenhouse Gas Emissions & Net-Zero Targets: Company identifies climate change as material risk (e.g., 'Natural disasters, changing weather patterns...could negatively impact...revenue and profitability') but does not disclose Scope 1, 2, or 3 emissions, carbon intensity, or net-zero target year in 10-K.
    Source: SEC 10-K Item 1A Risk Factors; MD&A (no quantitative emissions or climate targets disclosed)
  • Water Use & Environmental Compliance Risks: Company acknowledges 'prolonged drought conditions could lead to restrictions on water use, which could adversely affect...cost and ability to manufacture and distribute products' but does not disclose water withdrawal volumes, recycled water %, or water-stress mitigation plans.
    Source: SEC 10-K Item 1A Risk Factors
  • Plastic Packaging & Circular Economy Gap: 10-K notes consumer concerns about 'single-use and other plastic packaging' and cites risk of litigation ('the Company could be a named party in a lawsuit related to the environmental impact of plastics or littering'). Company purchases plastic bottles exclusively from two cooperatives (Southeastern Container, Western Container) but discloses no recycled-content targets, circular-economy commitments, or waste-reduction KPIs.
    Source: SEC 10-K Item 1A Risk Factors; MD&A (Southeastern Container co-ownership disclosure)
  • Aluminum Tariff Exposure & Commodity Cost Volatility: 2025 gross margin decline of 20 bps 'particularly in the back half of the year' attributed to 'aluminum costs, including the impact of elevated import tariffs.' Company hedges commodity prices but acknowledges 'there can be no assurance the Company will succeed in limiting the impact of fuel price increases or price volatility.'
    Source: SEC 10-K MD&A Results of Operations; Risk Factors
  • Supply Chain Carbon Risk from Concentrate Suppliers: Company relies on The Coca-Cola Company and other brand partners for finished-product concentrates and marketing funding. No disclosure of upstream Scope 3 emissions audits, supplier decarbonization requirements, or joint climate targets with concentrate manufacturers.
    Source: SEC 10-K Risk Factors (reliance on concentrate suppliers and brand partners)

Disclosed initiatives

  • Supply Chain Optimization & Fuel Efficiency
    MD&A notes company is 'continually focused on optimizing our supply chain' and 'strives to reduce fuel consumption' with commodity hedging strategies. Fuel costs managed through hedging instruments; fleet optimization mentioned but without quantified reduction targets.
  • Alternative Route-to-Market (ARTM)
    Company shifted post-mix delivery to third-party distributors and alternative channels, reportedly to 'enhance profitability and customer service.' Approximately two-thirds of post-mix gallons and less than 10% of bottle/can volume delivered via ARTM in 2025.
    Claimed reduction in direct delivery fleet pressure, but no emissions quantification provided.
  • Capital Investment in Production & Distribution
    2025 capex $312.3M; opened 430,000-sq-ft automated distribution center in Columbus, Ohio in Q1 2025. 2026 capex expected ~$300M focused on supply chain optimization and future growth.
    Infrastructure modernization may reduce per-unit logistics emissions, but no baseline or target disclosed.

Social story

Coca-Cola Consolidated reports moderate social performance with documented union relationships and labor investments, but lacks comprehensive diversity disclosure and exhibits elevated CEO-to-worker pay ratio risk. Company employs ~15% unionized workforce under collective bargaining agreements (CBA), primarily Teamsters Local Unions 175 & 505, with disclosed pension-plan participation risk. MD&A reveals Q3 2025 wage-base investment for front-line employees and annual wage adjustments, demonstrating labor-cost commitments. However, 10-K does not disclose: workforce diversity (gender/race/ethnicity %), executive/board diversity %, CEO-to-median-worker pay ratio, turnover rate, or supply-chain human-rights audits. J. Frank Harrison III controls 78% of voting stock (Class B), creating concentrated governance that may limit independent labor-relations accountability. No documented union-suppression activities or strikes in past 24 months identified; CBA negotiations appear routine.

Criticisms on file

  • Absence of Diversity Disclosure: 10-K does not disclose workforce gender/race composition, leadership diversity percentages, or executive-compensation equity analysis. No EEO-1 or pay-equity audit referenced.
    Source: SEC 10-K (no diversity metrics in MD&A, Risk Factors, or financial schedules)
  • CEO Controlling Shareholder Conflict: J. Frank Harrison III controls 10,043,940 shares of Class B Common Stock (~78% of voting power); has right to acquire additional 2,923,860 shares (~83% if exercised). Harrison and family member serve on Board. Risk Factors note this 'concentration of ownership could have the effect of delaying or preventing a change in control otherwise favored by the Company's other stockholders.'
    Source: SEC 10-K Item 1A Risk Factors (Capital Stock Concentration)
  • Multiemployer Pension Plan Withdrawal Risk: Company participates in Teamsters Plan (multiemployer). 10-K warns: 'If a participating employer stops contributing to the Teamsters Plan, the unfunded obligations of the Teamsters Plan may be borne by the remaining participating employers. If the Company chooses to stop participating in the Teamsters Plan, the Company could be required to pay the Teamsters Plan a withdrawal liability based on the underfunded status of the Teamsters Plan.'
    Source: SEC 10-K Risk Factors; Item 7 Material Contractual Obligations
  • Supply-Chain Labor Practices Undisclosed: Company purchases ~16M cases annually from SAC (Southeastern Coca-Cola Bottling Company) through June 2034 (~$141M 2026 commitment). No human-rights audits, forced-labor policies, or supplier labor-standard certifications disclosed.
    Source: SEC 10-K MD&A (SAC purchase obligation); no supply-chain audit documentation provided
  • Plant Safety & Occupational Health Metrics Not Disclosed: Despite labor-intensive operations (delivery fleet, warehouse, manufacturing), 10-K provides no OSHA recordable-injury rates, lost-time-accident frequency, or safety-audit results.
    Source: SEC 10-K (no occupational health/safety KPIs disclosed)

Disclosed initiatives

  • Front-Line Wage Investment (Q3 2025)
    SD&A expenses increased $88.9M (4.8%), driven by 'additional investment in the base wages of our front-line teammates, which became effective at the beginning of the third quarter of 2025.' Annual wage adjustments also mentioned.
    Direct wage-base increase for ~85% non-union workforce; specific wage amounts and percentage increase not disclosed.
  • Labor Cost Management & Benefits
    MD&A notes 'labor costs represent approximately two-thirds of total SD&A expenses.' Company manages workers' compensation, auto liability, and medical insurance through diverse insurer structures with retentions and deductibles.
    Cost-control measures in place, but no disclosure of safety KPIs, lost-time injury rates, or OSHA citations.
  • Talent Attraction & Retention Strategy
    Risk Factors identify 'attract, train, develop, motivate and retain a highly skilled, diverse and properly credentialed workforce' as key to future growth. Company acknowledges competition for qualified personnel and labor-law compliance burdens.
    Strategic emphasis documented, but no quantitative diversity or turnover targets disclosed.

Governance story

Coca-Cola Consolidated exhibits weak governance architecture dominated by concentrated founder-family control and insufficient independent board oversight. J. Frank Harrison III controls 78% of voting stock (Class B structure), eliminating meaningful shareholder influence on strategic decisions, executive compensation, or M&A approvals. Board independence percentage not disclosed; Harrison and family member sit on Board, raising conflict-of-interest risks. Company does not disclose annual lobbying expenditure, PAC contributions, or alignment of trade-association climate positions with stated sustainability goals. 10-K identifies lobbying risk ('regulations restricting the sale of soft drinks...in schools') but provides no transparency on legislative advocacy spend or positions. Material governance gaps: dual-class supermajority structure (deduction -20), undisclosed board independence (<75% risk), no lobbying-spend disclosure, and potential climate-deregulation advocacy alignment with beverage-industry trade groups. No SEC consent decrees, antitrust proceedings, or financial-fraud matters disclosed in current 10-K, but significant contingent-liability exposure ($717.9M acquisition-related sub-bottling payments) and 2025 S&P credit-outlook downgrade to negative signal financial-stability concerns.

Criticisms on file

  • Dual-Class Share Structure with Supermajority Founder Control: J. Frank Harrison III holds 78% of voting power via Class B Common Stock; can acquire additional shares to reach ~83%. Eliminates shareholder democracy for executive compensation, acquisition approval, strategic direction, or director election. Risk Factor explicitly states this 'could delay or prevent a change in control otherwise favored by the Company's other stockholders and could depress the stock price.'
    Source: SEC 10-K Item 1A Risk Factors (Capital Stock Concentration); Item 7 MD&A (Harrison holdings detail)
  • Undisclosed Board Independence Percentage: 10-K does not state board independence %, number of independent directors, or independence criteria applied. Harrison and family member serve on Board, creating inherent conflict-of-interest risk for executive compensation, related-party transactions, and strategic decisions.
    Source: SEC 10-K (no board independence disclosure; Risk Factors identify Harrison board presence)
  • No Disclosed Lobbying Expenditure or PAC Contribution: 10-K identifies regulatory risks ('regulations restricting the sale of soft drinks...in schools,' 'legislation proposed...to limit or restrict the sale of energy drinks to minors,' 'recycling regulations...single-use plastics') but does not disclose annual lobbying spend, PAC contributions, or trade-association positions. Beverage industry lobbied extensively against sugar taxes and plastic regulations; no disclosure of COKE's advocacy alignment.
    Source: SEC 10-K Risk Factors (regulatory risk enumeration); no lobbying/PAC disclosure provided
  • Credit Rating Downgrade to Negative Outlook (Nov 2025): Standard & Poor's affirmed BBB+ rating but revised outlook from stable to negative, citing debt/leverage concerns. Indicates potential governance/financial-stability erosion tied to $2.4B share-repurchase program funded by leverage increase ($1.35B in new term loans, Q4 2025).
    Source: SEC 10-K Item 7 MD&A (S&P Negative Outlook disclosure)
  • Acquisition-Related Contingent Consideration Liability ($717.9M) Fair-Value Volatility: Company records non-cash mark-to-market adjustments quarterly based on discount-rate and cash-flow-projection changes. 2025 mark-to-market increase of $131.9M (vs. $59.2M in 2024) driven by WACC decreases and higher cash-flow projections. 10-basis-point interest-rate change impacts liability by ~$7M. Risk of material periodic earnings volatility and potential covenant-ratio stress if rates spike.
    Source: SEC 10-K MD&A (Acquisition Related Contingent Consideration; Critical Accounting Estimates)
  • Related-Party Transaction Risk: The Coca-Cola Company (concentrate supplier, brand licensor, RMA/CBA agreement counterparty) also historically held equity stake (repurchased by COKE in Nov 2025 for ~$2.4B). Concentration of economic dependence on single large-cap customer/supplier increases conflict-of-interest risk for pricing, capital allocation, and strategic autonomy.
    Source: SEC 10-K MD&A (Repurchase of Coca-Cola Company shares, Nov 2025); Risk Factors (RMA/CBA provisions)
  • Material Change-of-Control Restrictions: CBA and RMA require prior written approval from The Coca-Cola Company for any third-party buyer of COKE's Coca-Cola distribution/manufacturing business. Provisions effectively veto M&A optionality for minority shareholders and reduce takeover-defense effectiveness. Public debt-holders have put-right upon change of control.
    Source: SEC 10-K Item 1A Risk Factors (Beverage Agreement Provisions); Item 7 MD&A (bond provisions disclosure)

Disclosed initiatives

  • Board Governance & Oversight
    Company operates Board of Directors with Chairman/CEO J. Frank Harrison III and family member also serving. Audit Committee mentioned in discussion of critical accounting estimates. No explicit disclosure of board committee structure, independence targets, or annual board self-evaluation.
    Governance structure established but concentrated voting limits board independence effectiveness.
  • Debt Covenant Compliance & Financial Controls
    Revolving credit facility ($500M) and Term Loan Facilities ($1.35B as of Dec 31, 2025) include two financial covenants: consolidated cash-flow/fixed-charges ratio and consolidated funded indebtedness/cash-flow ratio. Company was in compliance as of Dec 31, 2025. No SEC financial restatements disclosed.
    Financial covenants 'have not restricted, and are not expected to restrict, the Company's liquidity or capital resources.' Third-party lender oversight mitigates certain financial-reporting risks.
  • Risk Disclosure & Forward-Looking Statements
    Comprehensive Item 1A Risk Factors section identifies 20+ material risks (raw materials, fuel, supply chain, regulatory, debt, labor, climate, litigation). Cautionary Note on forward-looking statements included per Private Securities Litigation Reform Act.
    Transparency on known risks supports investor decision-making but does not reduce underlying governance concentration.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Coca-Cola Consolidated, Inc.. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Coca-Cola Consolidated, Inc. in the app for interactive charts and portfolio building.

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