Coca-Cola Bottling Co. Consolidated (NASDAQ:COKE) is slated to release its financial results for the first quarter of 2016 on May 10, 2016. The company is the largest independent bottler of products of The Coca-Cola Company (NYSE:KO) in the U.S.
Coca-Cola Bottling had recorded year-over-year growth in adjusted earnings and revenues in 2015. Organic growth in the legacy territories as well as territory expansion through the acquisition of several new distribution territories from Coca-Cola led to the solid performance. The company plans to further expand its distribution territory and acquire additional production centers from Coca-Cola as part of the latter’s global re-franchising initiatives in 2016.
Coca-Cola is refranchising the majority of its company-owned North American bottling territories to create a more efficient system. It plans to refranchise all its company-owned North American bottling territories by the end of 2017.
Coca-Cola also remains focused on refranchising in international markets like Europe and Africa which include the planned creation of Coca-Cola European Partners in Western Europe – merger of three European bottlers including Coca-Cola Enterprises, Inc. (NYSE:CCE) – and Coca-Cola Beverages Africa in Southern and Eastern Africa. In China, it has agreed to refranchise its company-owned bottling operations to its existing partners, COFCO and Swire.
Expansion of franchise territories is expected to boost Coca-Cola Bottling’s sales and profits in the to-be-reported quarter as well as going ahead.
The company’s top line has also been benefiting from solid performance of its energy and still beverage brands, a trend which should continue in the upcoming quarter.
A stock worth considering in the beverage industry is Primo Water Corp. (NASDAQ:PRMW) which sports a Zacks Rank #1 (Strong Buy).
COCA-COLA ENTRP (CCE): Free Stock Analysis Report
COCA COLA CO (KO): Free Stock Analysis Report
PRIMO WATER CP (PRMW): Free Stock Analysis Report
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