CALGARY, Alberta, and CHARLESTON, S.C. — Parkland Corp. has acquired the license for the exclusive use of the “On the Run” trademark in the majority of U.S. states. The acquisition positions Parkland to expand On the Run across the United States to create a unified, North American convenience-store brand, it said.
Through this acquisition, Parkland has acquired, for a one-time fee, the perpetual license for the exclusive use of the On the Run trademark in most states. The deal includes an option to purchase the On the Run U.S. trademark together with the license owner’s On the Run franchise business.
“We are excited to expand the On the Run convenience store brand across the U.S. and harness the advantages of our scale,” said Ian White, senior vice president of strategic marketing and innovation at Calgary, Alberta-based Parkland. “As we continue to advance our ambitious growth strategy, the time is right to create a unified, North American retail and convenience-store brand. On the Run is an established retail brand that we can quickly and efficiently scale by leveraging the capabilities we have established in the Canadian market.”
Exxon Mobil Corp. developed and uses the On the Run brand at Exxon and Mobil stations in the United States, at Mobil stations in Australia and at Esso and Mobil stations internationally. Laval, Quebec-based Alimentation Couche-Tard acquired the On the Run trademark and franchise network in the United States in 2009, and Parkland Fuel acquired the On the Run trademark and franchise network in Canada in 2016. ExxonMobil retains full ownership of the brand in the rest of the world.
For Parkland, the strategic rationale for this acquisition includes:
- Expanding On the Run across the United States to create a unified North American convenience brand.
- Capturing efficiencies through common brand collateral, product assortments, private-label product ranges and operational continuity.
- Leveraging the opportunity to rebrand its existing U.S. c-stores and efficiently incorporate the On the Run convenience brand into newly developed sites.
- Providing greater optionality and a strong c-store foundation for future U.S. merger-and-acquisition activities.
- Supporting the organic growth of its dealer business by providing an enhanced, bundled offer that combines a leading c-store brand with multiple forecourt fuel brands.
“The On the Run retail brand provides a solid platform for our continued U.S. growth,” said Doug Haugh, president of Charleston, S.C.-based Parkland USA. “Building on our existing On the Run brand image, product assortments and private label goods in Canada, we look forward to meeting the convenience needs of our U.S. customers under the On the Run banner. Our U.S. customers will enjoy enhanced interior and exterior rebranding elements, larger and brighter canopies and a variety of new product offerings, all backed by their same local and friendly service teams.”
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading c-store operator. It services customers in Canada, the United States, the Caribbean and the Americas through three channels—retail, commercial and wholesale. The company provides “trusted and locally relevant” fuel brands and c-store offerings in the communities it serves.
In Canada, Parkland Fuels owns, operates or supplies stations under the brands Chevron, Esso, On the Run, Marche Express, Fas Gas Plus, Pioneer, Race Trac (not to be confused with RaceTrac Petroleum in the United States) and Ultramar. It acquired most of the Canadian business and assets of CST Brands Inc. from Couche-Tard in June 2017.
Parkland Fuel’s subsidiary Parkland USA has operations in 13 mostly Western U.S. states. Brands include Farstad Oil, Superpumper, Harts and Rhinehart Oil. Along with the new ConoMart Super Stores, its 58 company-owned stores include Superpumper locations in North Dakota, Montana, Wyoming and Minnesota; Harts Stores in Utah and Colorado; and KB Oil KB Express locations in Utah. It has 324 dealers under the Sinclair, Exxon, Phillips 66, Arco, Cenex and Chevron brands, as well as approximately 42 commercial locations.