Coca-Cola's Latin America president: Company can grow south of the border

Reyes contends that carbonated soft drinks are not close to tapping out. Per capita consumption in Brazil, for example, is not as heavy as in Mexico, giving Coca-Cola some elbow room. More consumers are joining the middle class, and 40 percent of the Latin American population is under age 21.

"We continue growing," said Reyes. "We are not content."

Latin America is one of the hottest regions for Coca-Cola, the world's biggest drinks company. It chips in about 12 percent of Coca-Cola's operating revenues and 25 percent of its operating profits.

In 2009, sales volume measured in cases increased 6 percent, following 8 percent growth in 2008. Brazil and Mexico contributed big increases in sales.

It wasn't a perfect performance. Latin America’s operating margins "came in much weaker than we anticipated" in the latest quarter, according to J.P. Morgan analyst John Faucher. A strong operating margin means that more of a company's revenue remains after paying for variable costs such as fuel and raw materials.

But even against difficult comparisons from last year, "Latin America remained the grade buster in the Coke world," Credit Suisse analyst Carlos Laboy wrote last week.

In the past three years, Coca-Cola has added 1.4 billion cases of sales in Latin America, equivalent to "adding another Brazil," Reyes said.

Last year, Coca-Cola's Latin American surge came both from "sparkling" beverages such as carbonated soft drinks and "still" brands such as bottled water. Sales of sparkling beverages such as trademark Coca-Cola rose 3 percent in 2009, and sales volume of still beverages jumped 24 percent from a smaller base. Coca-Cola said its Latin American wing grabbed market share from competitors.

"Competition is alive, and well, and growing in Latin America," said Reyes. "This heated, crowded arena in Latin America is good for us. It forces us to bring our ‘A game' to the marketplace every day."