SANFORD, N.C. -- The supply agreement solidified yesterday between The Pantry Inc. and ExxonMobil Oil Corp. signified two events for the Sanford, N.C.-based retailer. The first was acknowledging Exxon as the branded supplier of the 13 stores that are part of The Pantry's most recent acquisition; the second was establishing yet another gasoline supply relationship after going through the roughest patch the company has ever seen following Hurricanes Katrina and Rita.
I don't know anybody that's not concerned about multiple points of supply, Pete Sodini, [image-nocss] president and CEO of The Pantry, told CSP Daily News. If they didn't know it was necessary before, they sure know it now after [the hurricanes].
The agreement with ExxonMobil is for a five-year term. While The Pantry's current use of ExxonMobil products is modest, including the 13 Speedmart Food Stores acquired from Tuscaloosa, Ala.-based Chatham Oil Co. last month, the agreement gives the company another major oil company as a potential key branded product supplier, joining BP, Chevron and CITGO.
The agreement covers multiple ExxonMobil terminals in the southeast United States that are strategically located in The Pantry's market areas. Additionally it provides the company another strong national gasoline brand to offer across its regional markets.
We are very excited about expanding our relationship with ExxonMobil, said Sodini. The new agreement with ExxonMobil provides us with additional security of gasoline supply. It provides potential supply from multiple terminals. We've got more potential for supply if and when we choose to access it.
The Pantry, with net sales for fiscal 2004 of approximately $3.5 billion, operates 1,400 stores in 11 Southeast states under a number of banners, including Kangaroo Express, The Pantry, Golden Gallon, Cowboys, Speedmart and Lil Champ.Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.