CHARLOTTE, N.C., Jul 21, 2004 /PRNewswire-FirstCall via COMTEX/ -- Coca-Cola Bottling Co. Consolidated (Nasdaq: Coke) today announced it earned $10.6 million or $1.17 per share for the second quarter of 2004. These results compare to net income of $11.9 million or $1.32 per share in the second quarter of 2003. The Company's net income in the second quarter of 2004 reflects a one-time unfavorable non-cash impact of approximately $1.0 million or $.11 per share due to a change in the manner in which The Coca-Cola Company delivers marketing funding support. In the second quarter of 2003, the Company's results reflected a nonrecurring tax benefit of $3.1 million or $.34 per share.

The Company's net sales grew by 4.9% in the second quarter of 2004 reflecting flat bottle/can volume, higher contract sales to other bottlers and an increase in average revenue per case of approximately 5%. Income from operations in the second quarter of 2004 increased 14% despite the $1.7 million nonrecurring reduction related to the impact of the change in the manner in which the Company receives marketing funding support. Beginning June 1st, The Coca-Cola Company eliminated most of its marketing funding support arrangements with the Company and reduced the price of concentrate to offset the reduction in marketing funding support.

J. Frank Harrison, III, Chairman and CEO, said, "The Company's financial results in the second quarter were very strong, driven by the large increase in average revenue per case. Volume was flat despite the increased revenue per case, reflecting an improving trend in immediate consumption channels, continued growth of Dasani, solid performance in our diet carbonated soft drink ("CSD") portfolio and the successful introduction of Coca-Cola C2." Mr. Harrison also said the Company continues to focus on reducing its debt through managing capital spending and an ongoing focus on working capital management. Debt at the end of the second quarter of 2004 was down by $80.6 million as compared to the end of the second quarter of 2003.

William B. Elmore, President and COO, said, "I am encouraged by our results in the second quarter. Sales have been buoyed by continued strength in Dasani, which grew by 11% as well as our diet CSDs, which grew by 5%. Early indications on Coca-Cola C2 are positive, as sales of the brand are in line with targets the Company set prior to launch and represent 2% of overall volume in the second quarter of 2004. Operating expenses increased at approximately the same rate as net sales due to higher payroll and benefit costs and higher fuel prices. The Company is maintaining its focus on increased pricing and productivity improvements to cover cost increases and improve operating margins." Mr. Elmore also said that the change in the manner in which The Coca-Cola Company delivers marketing funding support had no negative impact on cash flow from operating activities and will simplify the administration of the Company's marketing funding relationship with The Coca-Cola Company going forward.

Cautionary Information Regarding Forward-Looking Statements

Included in this news release and other information that we make publicly available from time to time are forward-looking management comments and other statements that reflect management's current outlook for future periods. These statements include, among others, statements relating to: increased pricing and productivity improvements to cover cost increases and improve operating margins and reducing debt through managing capital spending and an ongoing focus on working capital management. These statements and expectations are based on the currently available competitive, financial and economic data along with the Company's operating plans, and are subject to future events and uncertainties. Among the events or uncertainties which could adversely affect future periods are: lower than expected selling prices resulting from increased marketplace competition; changes in how significant customers market our products; an inability to meet performance requirements for expected levels of marketing funding support payments from The Coca-Cola Company or other beverage companies; reduced marketing and advertising spending by The Coca-Cola Company or other beverage companies; an inability to meet requirements under bottling contracts with The Coca-Cola Company or other beverage companies; the inability of our aluminum can or PET bottle suppliers to meet our demand; significant changes from expectations in the cost of raw materials; higher than expected insurance premiums; lower than anticipated return on pension plan assets; higher than anticipated health care costs; higher than expected fuel prices; unfavorable interest rate fluctuations; adverse weather conditions; inability to increase selling prices to offset higher raw material costs; terrorist attacks, war or other civil disturbances; changes in financial markets and significant changes in the Company's public debt ratings. The forward-looking statements in this news release should be read in conjunction with the detailed cautionary statements found on pages 33 and 34 of the Company's Annual Report on Form 10-K for the fiscal year ended December 28, 2003.

                             --Enjoy Coca-Cola--


    Coca-Cola Bottling Co. Consolidated
    CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
    In Thousands (Except Per Share Data)

                                  Second Quarter              First Half
                               2004         2003         2004         2003

    Net sales                $333,711     $318,165     $616,438     $593,365
    Cost of sales, excluding
     depreciation expense
     shown below              173,026      165,061      315,236      305,713
    Gross margin              160,685      153,104      301,202      287,652
    Selling, delivery and
     administrative expenses,
     excluding depreciation
     expense shown below      111,924      106,479      218,494      208,457
    Depreciation expense       17,661       19,282       35,313       38,297
    Amortization of
     intangibles                  795          767        1,590        1,465
    Income from operations     30,305       26,576       45,805       39,433

    Interest expense           10,676       10,916       20,984       21,287
    Minority interest           1,651        1,142        2,098        1,258
    Income before income
     taxes                     17,978       14,518       22,723       16,888
    Income taxes                7,355        2,618        9,305        3,581
    Net income                $10,623      $11,900      $13,418      $13,307

    Basic net income
     per share                  $1.17        $1.32        $1.48        $1.47

    Diluted net income
     per share                  $1.17        $1.32        $1.48        $1.47

    Weighted average number of
     common shares outstanding  9,063        9,043        9,063        9,043

    Weighted average number
     of common shares
     outstanding - assuming
     dilution                   9,063        9,043        9,063        9,043

Lauren C. Steel, VP Corporate Affairs, +1-704-557-4551, or
Investors, David V. Singer, Executive VP & CFO, +1-704-557-4604, both of
Coca-Cola Bottling Co. Consolidated