Coca Colareason 02 of 4it can hold its price and keep the customerderived 2026-09-08accession 0001628280-26-050503
The concentrate-based business model insulates the Company from manufacturing cost volatility while enabling pricing initiatives to flow through to margin expansion. Because bottlers bear production and distribution costs, higher commodity costs can be partially offset by pricing actions without the Company absorbing the full input cost increase itself.
the thesis · admitted · the reason above is the thesis, not printed twice
no findingread · nothing bore on it
It held on this filing. No finding was written because nothing in it bore on the reason — the sentences it was read against are below.
the evidence · every sentence checkedsix sentences · whole, uncut
the claims it rests on
Gross profit margin increased to 62.9% for both the three and six months ended July 3, 2026, compared to 62.4% and 62.5% for the prior year periods respectively
The increases were primarily due to the favorable impact of pricing initiatives and foreign currency exchange rate fluctuations, partially offset by higher commodity costs
The Company sells concentrates and syrups to bottling partners who manufacture finished products
what it was checked against
concentrate-based sales model
The Company sells concentrates and syrups to both consolidated and unconsolidated bottling partners.
bottler bears downstream costs
When we sell concentrates or syrups to our unconsolidated bottling partners, we recognize the concentrate revenue and concentrate sales volume when the concentrates or syrups are sold to the bottling partner.
pricing and cost factors separated
Factors that management must estimate include, among others, the economic lives of the assets, sales volume, pricing, royalty rates, cost of raw materials, delivery costs, long-term growth rates, discount rates, marketing spending, foreign currency exchange rates, tax rates, capital spending and proceeds from the sale of assets.