Finvest
AKO.B Beverages · Coca-Cola bottler · Latin America · Consumer staples · Thesis updated July 16, 2026

Coke demand is strong, contracts are the overhang

01 Running thesis

Demand held up across the map

Coca-Cola Andina had a better volume story in 2025 than the headline currency numbers show. Total sales volume rose 4.1% to 945.8 million unit cases, up from 909.0 million in 2024. The key point is that every country grew, including Argentina.

That matters because Argentina had been a drag in 2024. In 2025, it became a volume contributor. The filing says Argentine revenue rose in local currency, but fell in the reporting currency because the Argentine peso translated poorly into Chilean pesos.

The bull case is simple: this company owns important Coca-Cola routes in South America, and people kept buying its drinks even in hard markets. The bear case is also simple: the company depends on Coca-Cola authorizations, and all four core territory agreements expire between January 2027 and March 2028.

Apr 2026The 2025 Form 20-F showed stronger underlying demand, with total volume up 4.1% and growth in all four operating countries. The same filing raised the focus on 2027 and 2028 bottler agreement renewals.
Mar 2025The first thesis was set from the 2024 Form 20-F. The company showed volume growth led by Brazil, Chile, and Paraguay, while Argentina was still a drag.
02 Business model

A bottler with borrowed brands

Coca-Cola Andina produces, markets, sells, and delivers drinks in Coca-Cola territories. It makes money by turning concentrates and other inputs into finished beverages, then using its local sales and delivery network to get those drinks into stores, restaurants, and other points of sale.

The model works because Coca-Cola brands have huge pull with shoppers. It also creates a hard dependency. Coca-Cola Andina does not own the main trademarks. It needs bottler agreements from The Coca-Cola Company to keep making and selling the most important products in each country.

Scale helps. The company operates in Chile, Brazil, Argentina, and Paraguay, so one country can offset another for volume. But reported results still move with currencies, inflation, commodity costs, and local consumer spending.

03 Product portfolio

Mostly Coke, with nearby drinks

Cash cow

Coca-Cola trademark soft drinks

Soft drinks are the center of the company. They represented 63.9% of net sales in 2025, down slightly from 64.6% in 2024.

Steady

Mineral water

Water gives the company a non-soda product for daily use. In 2025, water volume grew faster than total company volume.

Steady

Juices and other non-alcoholic drinks

This bucket adds variety beyond carbonated soft drinks. It helps the company serve more drinking occasions.

Option

Beer and spirits

Beer and spirits are smaller and less central than Coca-Cola soft drinks. Their 2025 volume fell, while soft drinks, water, and juices grew.

04 Business segments

Four country profit pools

Chile39%modest
Brazil29%modest
Argentina22%declining
Paraguay9%modest

The mix below uses 2025 net sales by country from the 2025 Form 20-F. The shares exclude the small inter-country elimination line, so rounding is slightly above 100%.

05 Risk factors

What could break the case

Coca-Cola contract renewal

High impact · Medium odds

The company depends on The Coca-Cola Company for the right to produce and market its most important drinks. The Chile agreement expires in January 2027, Brazil in October 2027, Argentina in September 2027, and Paraguay in March 2028. A renewal problem, worse terms, or lost territory would change the whole investment case.

We watchFormal renewal disclosures for the Chile, Brazil, Argentina, and Paraguay bottler agreements.

Argentina currency translation

Medium impact · High odds

Argentina can grow in local currency and still hurt reported results. In 2025, Argentine revenue rose in local currency, but fell in the reporting currency because of the translation effect. That makes the business look weaker than local demand alone would suggest.

We watchArgentina net sales in Chilean pesos versus management comments on local currency sales.

Inflation and consumer pressure

Medium impact · Medium odds

The company sells everyday drinks, but shoppers can still trade down or buy less when prices rise too fast. Hyperinflation in Argentina is the clearest example. If price increases outrun wage growth, volume could weaken.

We watchUnit case volume by country, especially Argentina and Brazil.

Soft drink concentration

Medium impact · Medium odds

Soft drinks made up 63.9% of 2025 net sales. That focus gives the company scale, but it also ties results to soda demand and Coca-Cola brand strength. Faster shifts toward water, low-sugar drinks, or local brands could pressure the mix.

We watchSoft drinks as a percentage of net sales and volume growth by product type.
06 Quick answers

In one breath

What does Embotelladora Andina do?

Embotelladora Andina, also called Coca-Cola Andina, bottles and distributes Coca-Cola branded drinks. It operates in Chile, Brazil, Argentina, and Paraguay.

Why are the Coca-Cola agreements so important?

The agreements give the company the right to make and sell Coca-Cola products in its territories. All four main agreements expire in 2027 or 2028, so renewal is the main risk to watch.

Why did Argentina matter in 2025?

Argentina changed from a volume drag to a volume contributor. But the weak currency and hyperinflation meant local gains did not fully show up in reported sales.