Why you need to Understand Vista Outdoors and What They Own

[Philward]

I was hoping primers would come down a bit as interest rates rose, and inflation peaked and went down, but in re-assessing that market, there never was 50 and 100% inflation caused by material shortage, supply chain, or energy or wage inflation. That leap from $40 to the $125 to $170 range on primers is probably a lot of it "structural" due to market consolidation and pricing power wielded by Vista Outdoors owning
Federal, CCI, and Remington primers.

We are gonna have to all give Ginex and some other no name brands a try, and see if we can find substitutes that still work at a fairer price.

Competition as well as falling inflation are the only forces that will bring these high prices back into reason.

Pillaging the market because you own all the marbles is not a good long term move...... I believe they put that young Martin Shkreli in the Husgow for buying a single drug and increasing the price 5000%.
It went from $13.50 per pill to $750 per pill overnight.

They have to fund the merger somehow...
Same happened in archery with The Outdoor group.

 

[Veteran]

Ok, one company owns all the oil, all the pipelines, all the gas stations, so its pretty well vertically integrated.....

It also therefore has 100% market share.

Let's just call it State Owned Oil National Oil Co.

Looks like a monopoly to me.....doesnt matter who the shareholders are. Its a monopoly.

 

[habituallinestepper]

I was referring to primer situation.

 

[Philward]

Businesses exist to make money and return value to shareholders.

Maybe that's the problem...? Not manufacturing, just money laundering.

 

[Veteran]

I was referring to primer situation.

Well its pretty near a monopoly when they own all the primer makers but 1 that make primers here in the U.S. They own two of
the largest ammunition companies in the U.S.

They own a big powder manufacturer.

No, they are not quite a monopoly, but very close, and if they bought Winchester, it would be almost lights out on primers and ammo.

I hope Olin Corp. is not wanting to sell Winchester.

Before the 70s the Big 3 in autos had certainly an Oligopoly.

Now not so much because of imports from Japan and Korea.
But what if GM bought, Ford, Chrysler, Toyota, Mazda, and Nissan
and all that was left was Kia and Hyundai???

Thats about where primers are in particular in this niche w Vista.

 

[Primative]

Congress has ignored the Sherman Act and deliberately allowed many mergers to take place over the years that created unregulated monopolies. Ammunition is just one of the latest.

 

[xsn10s]

Well the way I see it if remington went completely defunct then we'd have even less ammo, primers, and rifles. The left would love that.

 

[Tomjoad]

Diversity of the portfolio nor the scale of the business are an issue, those are advantages Vista has that help make for a viable and sustainable business model, good strategy on their part.

The primer area per the OP's original post is the concern with the lack of competition.

Any lawyers on here interested in a project? https://www.ftc.gov/enforcement/report-antitrust-violation

 

[Earnhardt]

Diversity of the portfolio nor the scale of the business are an issue, those are advantages Vista has that help make for a viable and sustainable business model, good strategy on their part.

The primer area per the OP's original post is the concern with the lack of competition.

Any lawyers on here interested in a project? https://www.ftc.gov/enforcement/report-antitrust-violation

Hmmmm…. looks like the available $150/1000 primer supply might get cut back a little more with a post like this.

 

[Veteran]

Well the way I see it if remington went completely defunct then we'd have even less ammo, primers, and rifles. The left would love that.

Im glad to see Remington up and running and producing ammo and primers and hiring folks. I drive by their big plant North of Little Rock all the time. Core Lokt is pretty good factory ammo.

And I dont blame Vista for buying them out of Bankruptcy......
But, just as having one oil company, one political party, one dictator rule , or too much power, market, political or otherwise, under 1 tent is not good. The concentration of market power all under 1 umbrella eventually is not good. Absolute power corrupts absolutely.

 

[orkan]

Yes, attack the companies you're mad at for not providing enough of what you want... because that will definitely make it easier for them to provide what you want at lower costs. Definitely initiate litigation against them, so that will help them keep costs low. /s

Logic is systematically being assassinated from society. It's as if having flawed logic that will certainly create the opposite of what you want, is a badge of honor now. There is seemingly nothing unsuccessful people hate more than successful people.

 

[lightshooter]

It's happening in every industry these days. Consolidation is happening all around us and the Gov. hasn't done anything about, both parties. Monopolies are bad for innovation, consumers, workers, and capitalism.

 

[xsn10s]

Im glad to see Remington up and running and producing ammo and primers and hiring folks. I drive by their big plant North of Little Rock all the time. Core Lokt is pretty good factory ammo.

And I dont blame Vista for buying them out of Bankruptcy......
But, just as having one oil company, one political party, one dictator rule , or too much power, market, political or otherwise, under 1 tent is not good. The concentration of market power all under 1 umbrella eventually is not good. Absolute power corrupts absolutely.

Maybe so but if people who are for 2A start attacking American firearms companies then it plays into the hands of the antigunners. It's a timing issue.

 

[Tomjoad]

Hmmmm…. looks like the available $150/1000 primer supply might get cut back a little more with a post like this.

Vista selling CCI to another entity is not going to reduce/hurt supply. An antitrust challenge won't close operations, it will force a divestiture. Result: Vista gets a massive injection of cash for the sale of CCI and America gets more balanced competition in the primer space.