CIOMA Destruction Derby
SIGMA Spring Meeting
Nevada Petroleum Marketers “Big Dog” Convention
Want to see the photos that didn't make the issue? Check out the Cutting Room Floor.
World Fuel
Services Acquires APP
E-Cigarettes
Face Regulation
Phillips 66
Drops 76 Lube Brand
Par Pacific Buys Wyoming Refinery
Aloha to Open
15 Dunkin' Donuts in Hawaii
MIAMI, FL. — World Fuel Services Corporation has acquired Associated Petroleum Products, Inc., of Tacoma, WA., effective as of July 5.
Founded in 1972, APP had been rapidly expanding in recent years through major acquisitions. In 2013, the company acquired Pioneer Oil in Portland, OR., adding the company's fueling, cardlock, propane facilities, and heating oil to its Pacific Northwest assets.
In 2014, APP purchased many of the assets of Pettit Oil after the Pettit was shuttered by bankruptcy court including the company's truck fleet, fuel and lubricant equipment, the company name and intellectual property, and were able to hire many of the former Pettit Oil employees.
At the time of the sale to World Fuel Services, APP had 275 employees and 2015 revenue of $600 million.
With the addition of APP, World Fuel now has solid assets in Washington and Oregon including gasoline, diesel, and propane marketing and storage as well as fuel delivery and lubricants in the Northwest. It is expected the company will use this acquisition to expand its position up and down the I-5 corridor and across the West.
"The acquisition of APP significantly expands our geographic reach and supply and distribution capabilities, while further strengthening our commercial and industrial distribution platform in the United States," stated Michael Kasbar, chairman and CEO of World Fuel Services Corporation, announcing the deal. "We look forward to welcoming the APP teams to the World Fuel Services organization."
LOS ANGELES, CA. — After several years of virtually unrestricted growth, Federal and state governments have taken action against the use of e-cigarettes and vaping.
At the Federal level, the Food and Drug Administration announced that it was assuming regulatory authority over e-cigarettes. As part of that authority, the FDA said it will require its traditional product approval process of all e-cigarette products, a move that many predict will drive all but the largest manufacturers out of business — or underground.
The estimated cost of testing for an FDA approval is estimated at $2 million to $10 per product.
According to Nielsen data, approximately 57% of the $3.5 billion in e-cigarette sales come from small and independent manufacturers who specialize in liquid nicotine products and refillable e-cigarettes.
In addition, the sale of e-cigarettes is now banned nationally to anyone under 18 and warning labels must be added to packaging.
At the state level, California has passed legislation defining e-cigarettes as tobacco products. Under that new definition, electronic cigarettes may not be used in public places where smoking is already banned including workplaces, schools, hospitals, restaurants, theaters, and on public transit. The new law took effect on June 9.
State Senator Mark Leno (D-San Francisco) told the press the new law "is critical to protecting public health, especially given the alarming rate at which young people are picking up these devices."
The California law also requires vaping devices and liquids to be sold in child-resistant packaging and they cannot be marketed to minors.
HOUSTON, TX. — After over 100 years of history in the lubricants marketplace, Phillips 66 has announced they will be retiring the 76 and Conoco brands from its lubricants offerings.
In an official statement, Bryan Faria, manager of Finished Lubricants for Phillips 66 explained, "Consolidation simplifies the brand portfolio, while also allowing us to increase marketing support for two distinct brands. We're committed to building strong brand awareness and focusing our efforts to have greater impact and be more efficient overall."
The two brands that will be remaining in the Phillips 66 lubricants offering will be Kendall and Phillips 66.
The major oil company noted that consolidation affects only Phillips 66 Lubricants business; the Phillips 66, Conoco and 76 fuels brands will continue to be marketed.
The 76 brand was eliminated from the major oil company's lubricant offerings effective as of July 1.
NEWCASTLE, WY. — Par Pacific Holdings has purchased Wyoming Refining's 18,000-barrel-per-day refinery here. The purchase price was reportedly $271.4 million.
Included in the deal were the refinery as well as a 140-mile crude gathering pipeline and 40 miles of refined product pipelines.
Par Pacific, a Houston-based holding company, has been actively expanding their presence in the Western states. The company currently operates a refinery in Hawaii, a natural gas production facility in Colorado and markets and distributes crude throughout the western U.S.
William Pate, Par Pacific president and CEO, called the transaction a "bullseye." He explained, "It's an area, given the size of our company, where we can grow our business."
Roughly 55 percent of the Newcastle refinery's output supplies local gasoline demand, and it supplies fuel to nearby Ellsworth Air Force Base outside of Rapid City, SD.
The refinery's sale was announced in June and was expected to close by the end of July.
HONOLULU, HI. — Aloha Petroleum Ltd. has signed an agreement to launch the Dunkin' Donuts brand in Hawaii.
Aloha Petroleum plans to open 15 new Dunkin' Donuts restaurants on the islands of Oahu, Maui, Kauai and Hawaii. The locations will offer the traditional Dunkin' Donuts menu including doughnuts, muffins, bagels, breakfast and bakery sandwiches as well as hot and iced coffees.
The first restaurant is slated to open in 2017.
"We are excited to have the opportunity to launch the Dunkin' Donuts brand in Hawaii, and look forward to opening our first location early next year," said Richard Parry, president and CEO of Aloha Petroleum. "This new business venture will complement our existing retail offerings throughout the islands and help us diversify our portfolio."
"We are thrilled that Aloha Petroleum will be developing the brand throughout the Hawaiian Islands," said Grant Benson, vice president of global franchising and business development, Dunkin' Brands. "Even more of America will be 'Running on Dunkin'' since this agreement marks our upcoming entry into our 42nd state."
Aloha Petroleum, a subsidiary of Sunoco LP, operates approximately 100 Shell, Aloha and Mahalo branded fueling stations, plus 46 Aloha Island Marts, four Menehune Food Marts and two Subway locations in the Hawaiian islands.
Originally published in the
August 2016 issue of O&A Marketing
News.
Copyright 2016 by KAL Publications Inc.
Serving the 13 Western States, the World's Largest Gasoline, Oil, Fuel, TBA and Automotive Service Market