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Delek U.S. Dropping the 7-Eleven Brand?

Refiner-retailer launches new c-store identity
delek logo

BRENTWOOD, Tenn. — Delek U.S. Holdings Inc. and 7-Eleven Inc. have terminated a licensing agreement that “will require the removal of 7-Eleven branding on a store-by-store basis by Dec. 31, 2021,” CSP Daily News has learned. Delek U.S. reported contract termination and modification charges of $6.2 million in its fourth-quarter and full-year 2018 earnings report. The refiner-retailer is launching a new convenience-store brand, DK, to replace that branding and for new stores.

The Brentwood, Tenn.-based company’s convenience-store retail business is the largest 7-Eleven licensee in the United States and operates approximately 280 locations in central and west Texas and New Mexico.

Delek U.S. opened a new c-store in Midland, Texas, on Feb. 26, the first under the DK brand.

“This store is the first new build under the DK moniker in Texas, and although there are future plans to change Alon-branded stores to DK, there are no specific details we can share right now about locations or timeline,” a spokesperson for Delek U.S. told CSP Daily News.

In July 2017, Delek U.S. took ownership of Dallas-based 7-Eleven licensee Alon USA Energy Inc.

Irving, Texas-based 7-Eleven did not respond to a request for comment by posting time.

Delek U.S. is a diversified downstream energy company with assets in petroleum refining, logistics, renewable fuels and c-store retailing. The refining assets consist of refineries operated in Tyler and Big Spring, Texas; El Dorado, Ark.; and Krotz Springs, La. Delek U.S. and its affiliates own approximately 63% (including the 2% general partner interest) of Delek Logistics Partners LP, a growth-oriented master limited partnership focused on owning and operating midstream energy infrastructure assets.

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