DALLAS -- 7-Eleven Inc. has launched a pilot gasoline-branding program aimed at determining the value of the 7-Eleven brand and giving the company more flexibility on the gasoline-supply front, company CEO Joe DePinto exclusively told CSP Daily News.
We're piloting 7-Eleven-branded gasoline at 150 sites, DePinto said. It gives us the flexibility to do what we think is right [in terms of gasoline supply].
Working with ExxonMobil jobber Tower Energy, the Dallas-based company has already converted many of the stores in various markets [image-nocss] across the United States, including Fort Worth, Texas, and Chicago, according to DePinto. He said the pilot test will last six to eight months.
[The rebranding is] pretty much done, so we're in the assessment process, he said. We've been branded 7-Eleven in other areas and really haven't seen any changes in our volume or our gasoline business. We think it's a strong brand and we're going to move forward that way if this pans out.
DePinto said 7-Eleven has worked with Tower Energy previously in the West and is now adding the company as a supplier in the East. Although a final contract with Tower Energy has yet to be inked, DePinto said the agreement could cover a significant number of our stores, a large portion of our gasoline sites.
Late last year, as reported in CSP Daily News, 7-Eleven began negotiations with Shell Oil Co. to possibly take over as the mega-chain's gasoline supplier once its contract with CITGO expired in September of this year. DePinto added that 7-Eleven is still working with other gasoline suppliers, and other agreements are likely.
CITGO will remain our supplier through the length of our contract. We're talking to them and others right now, he said. As for Shell, he added, We will continue to talk with them. I think our interests meet in certain areas, particularly around retail and, on their side, gasoline.
However, DePinto said he ultimately feels the pilot program will prove successful. From all of our research, we know that the 7-Eleven [brand] is extremely strong, he said, and where we have branded 7-Eleven gasoline, we've done well.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.