CHS Tips to Zip Trip

Details on conversion; Minn., Wis. stores to remain Cenex Kum & Go Feb. 12, 2009

INVER GROVE HEIGHTS, Minn. -- CHS Inc. is continuing to refresh many of its sites by converting them to the Cenex Zip Trip brand by the end of June, as previously reported in CSP Daily News. Earlier this week, the company announced that approximately 30 Cenex Kum & Go LC convenience stores will be converted to the Cenex Zip Trip brand. The affected stores, located in Montana, Minnesota, North Dakota and South Dakota, are owned by CHS and will be managed by Kum & Go through April 30, 2009. Some locations in Minnesota and Wisconsin, however, will continue to operate [image-nocss] as Cenex Kum & Go stores.

CHS and Kum & Go formed a management relationship in 2003 involving 36 CHS-owned Cenex stores located in the South Dakota, Montana, Minnesota, Iowa and Wyoming. Under the agreement, Kum & Go assumed the primary role of managing the Cenex stores, with CHS retaining ownership.

"We are excited about this transition in the management and identification of our Cenex-branded retail locations," said Rick Cummings, vice president of refined fuels marketing for Inver Grove Heights, Minn.-based CHS. "We continue to leverage the strength of the fast-growing Cenex brand, while expanding the reputable Zip Trip store brand from the Pacific Northwest into new markets. We look forward to working closely with store employees to maximize operational efficiencies and deliver on the Cenex Zip Trip retail store promise of helpful service."

The new name "takes advantage of operational efficiencies and allows us to deliver on our Cenex-brand promise," Ann Mann, a spokesperson for CHS, told The Pioneer Press.

According to Cummings, all current and future CHS-owned c-stores will be branded Cenex Zip Trip. Currently, CHS owns 77 retail stores, located primarily in Washington, Idaho, Montana, Minnesota, Nebraska and the Dakotas.

"Some local cooperatives in Minnesota and Wisconsin that have an agreement with Kum & Go LC to manage their convenience stores will continue to operate per their current agreement. As a result, about half a dozen locations will continue as Cenex Kum & Go stores," added Cummings.

"Kum & Go appreciates the excellent partnership we experienced with CHS over the years. This change will allow for Kum & Go to have a better focus on core markets where we have experienced strong growth. We have a tremendous respect for the CHS team and the Cenex brand," said Kyle J. Krause, CEO and president of West Des Moines, Iowa-based Kum & Go.

Click hereto read previous CSP Daily News coverage.

Click hereto read previous coverage of CHS's acquisition of Zip Trip.

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