Dear Shareholders:
On behalf of the Board that I preside, I am pleased to present the 2009 Annual Report and Financial Statements of Embotelladora Andina S.A. and its subsidiaries, in a year marked by a new global economic scenario resulting from the economic crisis that struck world-wide at the end of 2008 where we had to test all of our creativity, facing great challenges and being even more efficient in all aspects of our business. We are very proud of our team for a job well done, for the strategies implemented in each country and for having faced this year with tenacity and enthusiasm, proving once again that we are a multinational company with a solid financial position that grows every day reinforcing its leadership in the market. In this sense, it is our goal is to continue moving forward as a world-class company in every sphere of action.

During 2009, Company sales reached US$1,465 million. During this year we invested over US$100 million in Chile, Brazil and Argentina which allowed to increase productivity and improve our distribution network.

Consolidated volumes of our products grew 2.6%, reaching 452 million unit cases. Consolidated Operating Cash Flow amounted to US$317 million. Worth mentioning is that during this year, we sustainably increased our volume and value market share, indexes we track permanently, in the three countries where we operate.

Our operation in Chile obtained an Operating Cash Flow of US$138 million, and a 1.1% growth in sales volume. In terms of launchings and innovation we worked with our partner Coca-Cola to increase our product portfolio. In the soft drinks segment we launched Fanta Uva (grape flavor) which had great acceptance in the market.

In the category of juices, we introduced Hugo and Fruitopia and in the water segment we launched Aquarius, flavored water with 10% fruit juice (pear and apple), significantly benefitting our position in the market.

An important milestone for 2010 in Chile, is the beginning of the construction of our modern plant in Renca, a project that will conclude during the second half of 2011. This new plant, featuring sustainability, will have the highest standards in terms of environment, security, quality and reliability of processes, and will allow duplicating production capacity from 120 million to 240 million unit cases per year. On the other hand, the long-established San Joaquín plant, with over 60 years of activity, given its strategic location, will become one of the company’s most important distribution centers, contributing to the decentralization plan we initiated with the Maipú and Puente Alto distribution centers, increasing the chain of efficiency and operational activity that we have been developing.

Our subsidiary in Brazil obtained an Operating Cash Flow of US$131 million and a 6.4% growth in sales volume. In order to adapt to market dynamisms, we implemented an efficient pricing strategy that along with a reactivated consumption level allowed us to obtain positive results for 2009. We detected an opportunity in the C segment, and with our partner Coca-Cola we implemented a strategy to further outreach this increasing niche. We launched new 250 ml PET formats and created customer loyalty campaigns throughout the year.

Our operation in Argentina achieved the highest market share of the last six years, a 53%, and obtained more than 50% market share at each one of the locations within the franchise. Operating Cash Flow amounted to US$56 million.

A milestone we are tremendously proud about is having received the National Award for Quality in Argentina proof of the excellence in all processes of our business operation. This award is the highest recognition granted to private companies and public organizations in the neighboring country. This distinction means we are a benchmark in the industry and presents great future challenges in the path of constant evolution.

In Argentina this year we opened new market segments for new product categories such as Powerade, with a market share of more than 17%; the strongly positioned Aquarius and its variety of flavors; and Cepita Juice that consolidates a two digit market share.

Towards the end of 2009, in addition to more competitiveness, we will achieve a greater market share in the juice segment with the beginning of operations of the new juice plant in Córdoba. The new plant will allow us to supply our own needs for juice as well as supplying other bottlers near our operation.

In line with our sustainability strategy involving people, environment and communities, in Brazil we created the Social Responsibility Division and developed concrete actions with our neighbors
allowing us to reach out to them, listen to their concerns and thus make better corporate decisions. In the case of Chile, we internalized outsourced functions, such as the hiring of
204 workers of the picking area. In Argentina as in the other two countries, we developed training programs for our workers, allowing the professional development of each one of them.

We are calm and optimistic regarding the future. 2009 was a difficult year; the economy underwent a significant contraction and the cost of sugar was far above the historical average, but in the end, the recovery of the markets was the hallmark of the year. We are calm because we know that we have done things in the right way, efficiently planning a long term outlook. Challenges lay ahead but we count on the strength of an excellent team to continue reinforcing our leadership.

I want to go deeper on this last point and express our gratitude to more than 6,000 direct workers of Embotelladora Andina, for the their effort, rigor and proven commitment that has allowed us to become one of the most respected companies in Chile and Latin America. Our consolidated team, composed of workers, technicians and professionals of diverse disciplines, represents one of our main foundations from where we project our development and optimistic view towards the future.

Lastly, I would like to thank our shareholders, clients, suppliers and consumers for the continuous confidence they have placed in us.