October 5th, 1999
Dear Colt Distributor,
Rumors abound in this industry, particularly with regardto our plans concerning product supply. This letter will confirmthose plans. Please excuse the impersonal salutation, but we haveconcentrated on getting this information to you as quickly aspossible.
In developing our 2000 business plans and identifying strategicneeds beyond 2000, we have had to face the harsh reality of thesignificant impact which our litigation defense costs are havingon our ability to operate competitively in the marketplace.
Accordingly, we have made the decision to consolidate ourproduct lines as follows:
A. Effective immediately, Colt's Manufacturing Co., Inc. will accept no new orders for the following products:
1. Magnum Carry
2. DS II 38 Special
3. Python Elite - I's
4. Anaconda - MM's
5. 380s
6. Pocket Nine
7. 1991 Family
Please note: All standard model variations within the aboveproducts are also discontinued, effective immediately.
While these products are being discontinued, we will bereviewing orders in house and will advise each distributor assoon as possible if any of those orders for these products willbe affected.
B. Colt's very pleased to advise you that we will continue to manufacture and actively promote the sale of a variety of important handguns which best support and represent the unique value of the Colt Brand. These include:
1. Single Action Army
2. Cowboys
3. Model O's (New XS, Defender, Custom)
Due to the continued escalation of our litigation costs,coupled with our strong desire to maintain a meaningful presencein the handgun segment of the business, the prices of these productswill be increased by 6%, effective immediately. All orders currentlyon hand at Colt's will be honored at the current existing prices.
Our marketing objective is to streamline our handgun lineinto a smaller, but higher value collection of real Colt 'Classics',which best represent our brand, with much more emphasis on providingcustom features and custom appearance for serious gun enthusiastsand shooters and collectors, and those interested in owning areal Colt product of some special value.
Meanwhile we will continue to provide Match Target riflesand are in the final stages of implementing the launch of ournew Colt Light Rifle.
We are committed to taking a 'Classic' rather than the 'metoo' approach to the future development of our product lines andplan to focus more on what we have been best known for and bestfor the past 164 years!
We appreciate your patience, understanding and cooperation.If you have any questions, please direct them to your regionalColt Sales Manager, Dave Ridley, or Dave Horn.
Sincerely,
Thomas H. Kilby
Vice President Marketing & Sales Colt's Manufacturing Co.,Inc.
 |
|
