Coca-Cola Consolidated, Inc. (COKE): Marketing Mix Analysis [Dec-2025 Updated]

You're digging into how the largest U.S. bottler is actually making money in this inflationary environment, and frankly, the moves by Coca-Cola Consolidated, Inc. are textbook. As someone who spent a decade leading analyst teams, I can tell you their late-2025 focus is clear: pivot to premium Still beverages-their Q3 net sales grew 9.9%-while using smart pricing to lift total Q3 revenue by 6.9%. Stick with me below to see the precise breakdown of their Product, Place, Promotion, and Price strategy that pushed their gross margin to 39.6%.

Coca-Cola Consolidated, Inc. (COKE) - Marketing Mix: Product

The product element for Coca-Cola Consolidated, Inc. centers on its expansive and actively managed beverage portfolio, which is designed to meet diverse consumer demands across its operating territory.

Coca-Cola Consolidated, Inc. distributes over 300 brands and flavors across its territory. This portfolio spans sparkling and still categories, including energy products, sports drinks, bottled water, ready-to-drink tea, ready-to-drink coffee, juices, and protein drinks. The company employs approximately 17,000 teammates to manufacture, market, and distribute these products across 14 states and the District of Columbia.

Performance in the third quarter of 2025 demonstrated a clear shift in momentum within the portfolio. Still beverage net sales grew 9.9% in Q3 2025, outpacing Sparkling sales which grew 4.7% over the same period compared to Q3 2024. Total volume growth for Coca-Cola Consolidated in Q3 2025 was 3.3% year-over-year.

The growth drivers within the portfolio are clearly identifiable from recent performance. Strong growth drivers include Monster, Powerade, smartwater, and Core Power, as these brands, along with Dasani and Topo Chico, all achieved volume growth in the third quarter of 2025.

The product strategy actively manages underperforming core items by emphasizing alternatives. Focus on zero-sugar and flavor variants offsets softness in Coca-Cola Original Taste. For instance, sales of most remaining core products within the Sparkling category, including zero-sugar and other flavor offerings, demonstrated solid growth compared to the prior year in Q1 2025.

Portfolio strategy emphasizes premium, functional, and enhanced water products. The company expects continued growth in the large categories of energy and sports drinks, and its protein products continue to accelerate at a fast rate.

Here's a look at the key financial results for the product categories in Q3 2025:

The product offering is supported by operational scale and investment:

• Q3 2025 Net Sales totaled $1,888.3 million.
• Q3 2025 Gross Profit was $748.5 million.
• Q3 2025 Operating Margin reached 13.1%.
• Fiscal year 2025 capital expenditures are expected to be approximately $300 million.
• The company's zero-sugar portfolio is reported as No. 1 in the industry.

Coca-Cola Consolidated, Inc. (COKE) - Marketing Mix: Place

You're looking at the physical backbone of how Coca-Cola Consolidated, Inc. gets its products into consumers' hands. This isn't just about trucks; it's about infrastructure designed for speed and market density.

Coca-Cola Consolidated, Inc. is the largest Coca-Cola bottler in the United States, which means its distribution footprint is massive. You see this scale reflected in the territory they cover: serving 14 states and Washington, D.C.. That's a huge geographic area to keep consistently stocked.

The physical assets supporting this reach are substantial. Here's a quick look at the operational footprint as of mid-2025, which is critical for understanding their distribution power:

The core strategy for getting product onto the shelf is the Direct Store Delivery (DSD) model. This means Coca-Cola Consolidated, Inc. teams handle the entire process, from ordering to stocking. They use this hands-on approach to ensure superior shelf presence and product freshness, which is vital for high-velocity beverages. For example, in Q1 2025, volume was measured on a standard physical case basis, which is how they track product delivered via DSD.

This DSD system targets specific points of sale where immediate replenishment and merchandising make a difference. You'll find their execution focused heavily on:

• Large retail chains.
• Convenience stores.
• Club channels.
• Value retailers.

To maintain this level of service and optimize the flow, Coca-Cola Consolidated, Inc. is putting significant capital to work. They expect capital expenditures for fiscal year 2025 to be approximately $300 million, with investments in Q1 2025 already hitting $98 million and the first half reaching $157 million, all aimed at supply chain optimization and future growth. This investment is about making sure the right inventory gets to the right place, fast.

Finance: draft 13-week cash view by Friday.

Coca-Cola Consolidated, Inc. (COKE) - Marketing Mix: Promotion

Promotion encompasses all the activities and tactics a company employs to communicate about its product to the target audience, aiming to increase awareness, interest, and desire, and ultimately drive purchases. This can include advertising, sales promotions, public relations, direct marketing, and social media engagement. Effective promotion strategies ensure that the right messages are delivered through the most suitable channels to reach the target audience, persuasively conveying the product's benefits and differentiators

The promotional execution for Coca-Cola Consolidated, Inc. (COKE) is intrinsically linked to the broader strategy of The Coca-Cola Company (KO), focusing on both physical presence and digital reach.

The promotional framework for Coca-Cola Consolidated, Inc. (COKE) centers on the following strategic pillars:

• Strategy centers on strong in-store execution and point-of-sale displays.
• Leveraging parent company's shift to a digital-first marketing model.
• Teammate investment aims to improve retention and frontline sales execution.
• Focuses on multi-pack, take-home packages for promotional activity in club stores.
• Integrated commercial planning drives solid market share growth.

Strong In-Store Execution and Teammate Focus

The foundation of execution relies on the frontline workforce. Coca-Cola Consolidated, Inc. (COKE) supported its 17,000 teammates as of Q1 2025. This investment in personnel directly supports in-store presence and display quality. Specifically, Selling, Delivery and Administrative (SD&A) expenses in the third quarter of 2025 increased due to an additional investment in the base wages of our front-line teammates, which became effective at the beginning of the third quarter. This investment is aimed at bolstering the execution capability that drives point-of-sale effectiveness.

Digital Model Leverage and Investment

Coca-Cola Consolidated, Inc. (COKE) benefits from The Coca-Cola Company's (KO) strategic pivot. KO has shifted approximately 65% of its total media spend to digital channels as of 2024, up from less than 30% in 2019. This digital ecosystem, supported by Studio X, operates across 9 global locations. The increased marketing investment by KO is a key factor in the promotional landscape.

Integrated Planning and Market Share Gains

The alignment of commercial plans with marketing efforts is intended to drive market share. For The Coca-Cola Company (KO), this integrated approach appears to be working, as they reported gaining value share in total Nonalcoholic Ready-to-Drink (NARTD) beverages in Q3 2025. This success is supported by top-line results that reflect promotional effectiveness, such as:

• Organic Revenue (Non-GAAP) Growth: 6% in Q3 2025.
• Full Year 2025 Organic Revenue Growth Expectation: 5% to 6%.
• Q3 2025 Comparable EPS (Non-GAAP) Growth: 6%.
• Q3 2025 Net Revenues: $12.5 billion.

The focus on multi-pack, take-home packages for club stores is a tactical element of the overall commercial plan, though specific volume or revenue figures tied directly to this channel's promotional activity for Coca-Cola Consolidated, Inc. (COKE) are not explicitly detailed in the latest reports.

Coca-Cola Consolidated, Inc. (COKE) - Marketing Mix: Price

Price for Coca-Cola Consolidated, Inc. involves setting the amount customers pay, balancing perceived value with competitive positioning. The strategy heavily relies on pricing actions to manage costs and drive revenue growth, which is evident in recent financial performance.

Net sales for Coca-Cola Consolidated, Inc. reached $5.32 billion for the first nine months of 2025. This top-line performance reflects the effectiveness of the pricing component of the marketing mix.

Specifically, net sales growth of 6.9% in Q3 2025 was primarily driven by annual price increases executed across the portfolio earlier in the year. This pricing power was crucial in maintaining profitability amidst external pressures.

The impact of these pricing strategies is also visible in margin performance. Gross margin expanded 10 basis points to 39.6% in Q3 2025. This expansion demonstrates that pricing actions effectively offset commodity cost inflation, including the continued volatility associated with import tariffs on aluminum.

Revenue Growth Management (RGM) is a key mechanism for implementing these price strategies, often utilizing varied package sizes to offer a range of price points to the target market. For instance, the growth in Sparkling category net sales during Q3 2025 was driven primarily by sales of multi-pack, take-home packages sold within large store, club, and value channels. You see the results of this strategic mix management below:

The company's approach to pricing is clearly designed to capture value where demand is strongest, such as in the Still category, while using package architecture to maintain accessibility. Pricing actions are not just about increasing the sticker price; they are about managing the effective price realization per unit.

Here are the key financial outcomes tied to pricing and cost management for the third quarter of 2025:

• Gross margin expanded 10 basis points to 39.6%.
• Pricing actions successfully managed the net impact of increased commodity costs.
• The increase in Sparkling net sales was supported by multi-pack package sales.
• Gross profit for the third quarter of 2025 was $748.5 million, an increase of 7.2%.

This focus on price realization, rather than solely volume, is what allowed Coca-Cola Consolidated, Inc. to expand its gross margin even while navigating input cost volatility. It's a clear signal of pricing discipline in the market.