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AG Barr

Discuss Stock buying Shares, tips and ideas for stock market dealing
TheMotorcycleBoy
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Re: AG Barr

#237797

Postby TheMotorcycleBoy » July 19th, 2019, 2:28 pm

SalvorHardin wrote:Back to A.G. Barr. Having had a closer look it seems as though A.G. Barr is doing something similar to what Coca-Cola did when they introduced "New Coke" in 1985, though this is in response to the sugar tax.

Coca-Cola introduced New Coke in response to how Pepsi was perceived in taste tests. The problem is that most of their consumer base didn't want their Coca-Cola taken away from them, and they voted with their wallets. Coca-Cola's researchers had never asked people how they would react if the new formula would replace the old formula and you could no longer buy your Coca-Cola. The result was a massive surge in people stockpiling Coca-Cola and terrible publicity for New Coke. If you've spent years building up your brand, then you say that you're going to get rid of it, you'd better be very careful.

Berkshire Hathaway's Charlie Munger commented on the New Coke debacle in his 1995 speech at Harvard University, "The Psychology of Human Misjudgment”. Here's the relevant section (whole speech linked below):

"The extreme business cake here was New Coke. Now Coca-Cola has the most valuable trademark in the world. We're the major shareholder. I think we understand that trademark. Coke has armies of brilliant engineers, lawyers, psychologists, advertising executives, and so forth. And they had a trademark on a flavor, and they'd spent better part of 100 years getting people to believe that trademark had all these intangible values, too. And people associate it with a flavor, so they were gonna tell people not that it was improved 'cause you can't improve a flavor. If a flavor's a matter of taste, you may improve a detergent or something, but telling you're gonna make a major change in a flavor, I mean … So they got this huge Deprival Super Reaction Syndrome."

https://www.youtube.com/watch?v=pqzcCfUglws

If you look on eBay there's a fair old market in old recipe Irn-Bru, with cans actually selling for around £3 each. A quick fix would be to reintroduce old formula Irn-bru (at a higher price to allow for the sugar tax) and see what happens. That's what Coca-Cola did when they reintroduced "Classic Coke".

Note that in the UK Coca-Cola responded to the sugar tax by reducing the size of their bottles and keeping the old recipe, rather than changing the recipe. The 330ml cans have generally gone up in price, though I've noticed more smaller cans in the supermarkets.

Hi Salvor,

So given that I've bought £1050 of stock @641p I'm thinking that I should really just stick it out, and hold for a few years (as Dod suggested) and see what happens. (That 1050 is about 1.66% of our foli right now). Does this seem like the best plan of action for now? I really don't want to buyers-regret-panic-sell because let's face it - anything could happen.

Matt

SalvorHardin
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Re: AG Barr

#237806

Postby SalvorHardin » July 19th, 2019, 3:04 pm

TheMotorcycleBoy wrote:So given that I've bought £1050 of stock @641p I'm thinking that I should really just stick it out, and hold for a few years (as Dod suggested) and see what happens. (That 1050 is about 1.66% of our foli right now). Does this seem like the best plan of action for now? I really don't want to buyers-regret-panic-sell because let's face it - anything could happen.

I agree with Dod101. It isn't a huge proportion of your portfolio and Irn-Bru is still a good brand - it's just a bit under the weather at the moment.

Also you've bought after the big fall, which is much better than buying before the big fall :D

If you haven't seen the current Finsbury Growth & Income video, where Nick Train talks about A.G. Barr, I strongly recommend it.

https://www.finsburygt.com/

Bear in mind that Dod101 and I both have an indirect interest in A.G. Barr, through Caledonia Investments and Finsbury Growth & Income, so we do have some skin in the game!

TheMotorcycleBoy
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Re: AG Barr

#238705

Postby TheMotorcycleBoy » July 23rd, 2019, 4:45 pm

Hopefully this mini heatwave will have people out in droves buying soft drinks, e.g. Irn-Bru!

:lol:

simoan
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Re: AG Barr

#238723

Postby simoan » July 23rd, 2019, 5:47 pm

TheMotorcycleBoy wrote:Hopefully this mini heatwave will have people out in droves buying soft drinks, e.g. Irn-Bru!

:lol:

Well, I'd prefer them to stick to Vimto or Fever Tree mixers :-)

AndyPandy
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Re: AG Barr

#238752

Postby AndyPandy » July 23rd, 2019, 7:22 pm

TheMotorcycleBoy wrote:Hopefully this mini heatwave will have people out in droves buying soft drinks, e.g. Irn-Bru!

:lol:


I'm currently at Tollcross International Swimming Centre, Glasgow. On a previous visit I snapped this in the Sports Cafe (apologies for the quality - or lack of it).

Image

Only in Glasgow could Irn Bru be classified as healthy eating (drinking).

TheMotorcycleBoy
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Re: AG Barr

#238755

Postby TheMotorcycleBoy » July 23rd, 2019, 7:24 pm

AndyPandy wrote:
TheMotorcycleBoy wrote:Hopefully this mini heatwave will have people out in droves buying soft drinks, e.g. Irn-Bru!

:lol:


I'm currently at Tollcross International Swimming Centre, Glasgow. On a previous visit I snapped this in the Sports Cafe (apologies for the quality - or lack of it).

Image

Only in Glasgow could Irn Bru be classified as healthy eating (drinking).

Ssssshh!!!


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