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This current state analysis suggests that there are no significant barriers to AG Barr entering the Brazilian market, particularly if it is considered as a long-term investment and if other parts of the company can sustain the impact of the potential challenges in the short-term. Most importantly the market size, youthfulness and growth prospects suggest that Brazil is an opportunity which AG Barr should consider not only for its own business expansion, but also as a possible platform for accessing the South American continent.

AG Barr should be aware that according to KPMG a wide range of government incentives are available to start-up projects in Brazil and the use of these incentives is a significant feature of the Brazilian business environment. Generally there are no restrictions on foreign companies' ability to access state and municipal programmes and federal incentives.

Based on this favourable analysis of the current environment in Brazil for soft drinks manufacturers, it is recommended that a scenario planning exercise is conducted for AG Barr to explore possible future scenarios for the soft drinks industry in Brazil.