October 5th, 1999
Dear Colt Distributor,
Rumors abound in this industry, particularly with regard to our plans concerning product supply. This letter will confirm those plans. Please excuse the impersonal salutation, but we have concentrated on getting this information to you as quickly as possible.
In developing our 2000 business plans and identifying strategic needs beyond 2000, we have had to face the harsh reality of the significant impact which our litigation defense costs are having on our ability to operate competitively in the marketplace.
Accordingly, we have made the decision to consolidate our product 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 above products are also discontinued, effective immediately.
While these products are being discontinued, we will be reviewing orders in house and will advise each distributor as soon as possible if any of those orders for these products will be 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 presence in the handgun segment of the business, the prices of these products will be increased by 6%, effective immediately. All orders currently on hand at Colt's will be honored at the current existing prices.
Our marketing objective is to streamline our handgun line into a smaller, but higher value collection of real Colt 'Classics', which best represent our brand, with much more emphasis on providing custom features and custom appearance for serious gun enthusiasts and shooters and collectors, and those interested in owning a real Colt product of some special value.
Meanwhile we will continue to provide Match Target rifles and are in the final stages of implementing the launch of our new Colt Light Rifle.
We are committed to taking a 'Classic' rather than the 'me too' approach to the future development of our product lines and plan to focus more on what we have been best known for and best for the past 164 years!
We appreciate your patience, understanding and cooperation. If you have any questions, please direct them to your regional Colt Sales Manager, Dave Ridley, or Dave Horn.
Sincerely,
Thomas H. Kilby
Vice President Marketing & Sales Colt's Manufacturing Co.,
Inc.
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