ExxonMobil Merges Refining and Marketing Divisions
Keurig to Acquire Dr Pepper Snapple
Kum & Go Signs McLane
Pacific Biodiesel Growing Oil Stocks on Maui
Washington Governor Rejects New Terminal

EXXONMOBIL MERGES REFINING AND MARKETING DIVISIONS

IRVING, TX. — ExxonMobil has combined its refining and marketing operations into a single company, ExxonMobil Fuels & Lubricants Company.

ExxonMobil Fuels & Lubricants Company will manage all the company's downstream activities including crude purchasing and logistics, refining, supply, trading, midstream, marketing and sales of refined products.

"By combining activities of the two divisions — ExxonMobil Refining and Supply Company and ExxonMobil Fuels, Lubricants & Specialties Marketing Company — the company will achieve further integration to improve decision making and enhance performance in the market," said the major oil in an official statement. "The improvements will help the company to better respond to the needs of its customers and compete more effectively."

Bryan Milton, who had been serving as president of ExxonMobil Fuels, Lubricants & Specialties Marketing Company, was appointed president of the combined division in January.

The restructuring of the company was slated to be complete in the first quarter of 2018.

KEURIG TO ACQUIRE DR PEPPER SNAPPLE

PLANO, TX. — Coffee giant Keurig Green Mountain Inc., based in Waterbury, CT., has announced that it will acquire the Dr Pepper Snapple Group Inc.

The merged company will be called Keurig Dr Pepper.

Included in the deal are the Dr Pepper, 7UP, Snapple, A&W, Mott's and Sunkist brands. They will join Keurig Green Mountain's Green Mountain Coffee Roasters brand, the Keurig single-serve coffee system, and over 75 owned, licensed and partner beverage brands in the Keurig system.

It is estimated Keurig Dr Pepper will have $11 billion in annual sales.

Keurig CEO Keurig CEO Bob Gamgort will lead the combined company as CEO and Ozan Dokmecioglu, current chief financial officer of Keurig, will serve as its CFO. Larry Young, who had been serving as president and CEO of Dr Pepper Snapple, will be named to the Board of Directors of Keurig Dr Pepper but will no longer serve as an officer of the company. The remainder of the positions in the combined business will "draw on the leadership teams of both companies."

Keurig will maintain its headquarters in Waterbury and the Dr Pepper Snapple operations will continue to be led from the current headquarters in Plano, TX.

"Our view of the industry through the lens of consumer needs, versus traditional manufacturer-defined segments, unlocks the opportunity to combine hot and cold beverages and create a platform to increase exposure to high-growth formats," stated Gamgort. "The combination of Dr Pepper Snapple and Keurig will create a new-scale beverage company which addresses today's consumer needs, with a powerful platform of consumer brands and an unparalleled distribution capability to reach virtually every consumer, everywhere."

The acquisition is expected to close in the second quarter of 2018 following stockholder approval.

KUM & GO SIGNS MCLANE

WEST DES MOINES, IA. — Kum & Go, based here, has signed a deal for McLane Company to serve as its grocery wholesaler, effective as of Spring 2018. McLane will service the convenience store chain at its 400-plus convenience stores in 11 states, including Colorado, Montana, and Wyoming.

"McLane's commitment to technology and operational excellence will be critical as we work together to develop and implement solutions benefitting our customers and associates," said Chris Jones, senior vice president of marketing at Kum & Go, announcing the deal.

PACIFIC BIODIESEL GROWING OIL STOCKS ON MAUI

MAUI, HI. — Pacific Biodiesel Technologies has made its first harvest of sunflowers, grown here, to make biofuel for the Hawaiian Islands.

The sunflowers are being grown on a 115 acre site in Maui's central valley and Pacific Biodiesel says it expects to yield over 100 gallons of oil per acre per harvest. They believe up to three harvests per year will be possible.

"Think of it as 100-plus acres of energy storage and carbon sequestration," said Kelly King, co-founder of Pacific Biodiesel. "There are 36,000 acres of fertile sugar cane lands on Maui that ceased operation at the end of 2016. It is important for the community and the state to keep this land in agriculture to benefit Maui's economy and environment and to help the state increase its energy security, reduce reliance on fossil fuel, and achieve its 100% renewable energy mandate by 2045."

The Pacific Biodiesel project is the largest biofuel crop project underway in the state of Hawaii.

WASHINGTON GOVERNOR REJECTS NEW TERMINAL

OLYMPIA, WA. — Washington State Governor Jay Inslee has halted a project that would allow North America's largest oil-by-rail terminal to be built in the state.

Vancouver Energy, a joint venture of Tesoro and Savage, had submitted a proposal to build an energy terminal to accept crude oil delivered by rail, allowing easier distribution of crude oil produced in the mid-United States and the Bakken oil fields.

The proposed terminal would have shipped over 131 million barrels of oil per year down the Columbia River.

Inslee failed to sign a permit that would allow the terminal to be built, stating that "the project does not meet the broad public interest standard necessary." He noted that the Washington Energy Facility Site Evaluation Council voted last November to deny the permit saying it was "not possible to adequately mitigate the risks, or eliminate the adverse impacts of the facility, to an acceptable level."

While rejecting the project, Inslee added that while "this particular project is wrong for this particular proposed location, I am confident that our ports will continue to play an important role in regional trade, and providing opportunities for jobs in clean energy."

Originally published in the April 2018 issue of O&A Marketing News.
Copyright 2018 by KAL Publications Inc.