Pilot Opens First DEF Pumps
California Considers Soda Ban, Taxes
KAG Signs Distribution Deal With Coast Oil

PILOT OPENS FIRST DEF PUMPS

KNOXVILLE, TN. — Pilot Travel Centers reports that it has opened two Diesel Exhaust Fluid pumps, the first in the United States, in mid-September.

The pumps are located at the Pilot Travel Centers in Brooks, OR., and Charlotte, NC. The initial price for the DEF was $2.79 per gallon.

DEF has been mandated for use by the EPA in diesel-powered trucks to help reduce nitrogen oxide (NOx) emissions. DEF is a urea-based solution (32.5 percent industrial urea and 67.5 percent deionized water) that's injected as a fine mist into the engine's hot exhaust gases. The heat turns the urea into ammonia and, when used in an engine with a urea selective catalytic converter the NOx is broken down into nitrogen gas and water vapor.

The new EPA regulations requiring diesel engine modifications and/or replacement will go into effect as of January 1, 2010. After that date, all new diesels built will have to reduce allowable NOx levels by 90 percent from current levels. The DEF is one way that engine manufacturers are looking to meet the new requirements.

Pilot says it will install 100 DEF pumps across the United States by the middle of 2010. The company will also offer the DEF in bottles and canisters so it can be stored in vehicles and garages.

CALIFORNIA CONSIDERS SODA BAN, TAXES

SACRAMENTO, CA. — A California state senator has begun a campaign to limit the amount of soda sold to children in the state and potentially add a "sin tax" the sale of soda.

State Senator Alex Padilla, who chairs the California Senate's Select Committee on Obesity and Diabetes, said he planned to hold hearings in November on the link between soda consumption and obesity. Padilla said California needs to do more to educate the public about the health effects of drinking too much soda and to consider its options for reducing soda consumption among children.

Among the plans being considered by Padilla's committee are ways to ban or severely limit the sale of sodas to minors. The committee is also reportedly considering proposing a tax on sodas to encourage consumers to choose alternative beverages and cut consumption, following the pattern seen in tobacco sales.

"I don't think that most parents truly appreciate the role soda pop has in causing weight gain," Padilla said. "It is unfortunate that soda is actually cheaper than milk and even bottled water in many instances."

Padilla's most recent regulation required restaurant chains operating in the state to disclose the number of calories included in their meals prior to a customer's purchase.

The American Beverage Association has opposed similar efforts to tax soda, stating "If our goal is to address obesity, then educating consumers about the importance of balancing calories consumed from all foods and beverages with the calories expended through physical activity is what matters — not demonizing any one particular food."

KAG SIGNS DISTRIBUTION DEAL WITH COAST OIL

NORTH CANTON, OH. — The Kenan Advantage Group has signed a deal to acquire the trucking operations of Coast Oil, San Jose, CA., and take over the company's fuel delivery operations.

Included in the deal are Coast Oil's six truck and trailer units; the purchase price was not disclosed. KAG will also lease a portion of the Coast Oil warehouse in San Jose to manage the trucking operations.

With the close of the deal, scheduled for October 1, KAG will provide fuel to the over 100 retail dealers in Northern California who are Coast Oil customers.

"We will always do whatever it takes to keep our customers supplied with product," said Mark Mitchell of Coast Oil, announcing the deal, "and this partnership is just another way to solidify that promise. By aligning ourselves with KAG, we significantly enhance our economies of scale."

"This is a tremendous opportunity for KAG as it opens to the door to new business while providing us with additional assets to grow our operations in Northern California," stated John Jolly, vice president of Private Fleet Conversions for Kenan Advantage Group. "We are also pleased to be partnering with a company that has such a great reputation in the marketplace. It's a business relationship that should be extremely beneficial to both parties."

Originally published in the October 2009 issue of O&A Marketing News.
Copyright 2009 by KAL Publications Inc.