Pantry Extends CITGO Supply Agreement
Contract goes through 2010
SANFORD, N.C. -- The Pantry Inc. said that it has amended and extended its gasoline supply agreement with CITGO Petroleum Corp.
In 2003, the company announced an agreement calling for CITGO to supply approximately half of its total gasoline volume for five years. That agreement included both CITGO branded gasoline and private-label gasoline, most of which is sold under The Pantry's own Kangaroo brand.
CITGO currently supplies the company with more than one billion gallons of gasoline annually. The amended agreement provides for [image-nocss] growth through the potential addition of more stores, and extends the contract's term by two years, through 2010.
Our partnership with CITGO has worked out well for both parties, and we are very pleased to extend our contract on favorable terms, said Peter J. Sodini, president and CEO of The Pantry, Sanford, N.C. The amended agreement further bolsters our overall gasoline supply position, giving us greater flexibility and certainty of supply availability for the years ahead.
Meanwhile, as reported in CSP Daily News last week, The Pantry announced that it has executed a new five-year gasoline branding and supply agreement with Exxon Mobil Corp. The company said that while its current use of ExxonMobil products is modest, the agreement gives The Pantry another major oil company as a potential key branded product supplier.
The Pantry had net sales for fiscal 2004 of approximately $3.5 billion. As of Sept. 29, 2005, the company operated 1,400 stores in 11 states under a number of banners including Kangaroo Express, The Pantry, Golden Gallon, Cowboys, and Lil Champ Food Store.