HONOLULU -- A number of Hawaii 7-Eleven store locations on Oahu began converting to 76 brand gasoline last week; a process that will continue throughout July and into August. Locally owned and operated Mid Pac Petroleum LLC, which has the exclusive rights to the 76 brand in Hawaii, entered into a partnership with Seven-Eleven Hawaii Inc. to replace the existing brand of gasoline at 16 Hawaii 7-Eleven stores on Oahu. These new locations are in addition to five 7-Eleven stores that currently offer 76 gasoline on Oahu.
Mid Pac outbid Aloha Petroleum for the rights to the 16 7[image-nocss] -Eleven locations, reported The Honolulu Advertiser. Mid Pac's deal will run 15 years, with the option to extend, the report added. Aloha will still maintain distribution to 10 7-Eleven locations.
Jim Yates, president and CEO of Mid Pac Petroleum, told the newspaper that the company will spend $2 million to brand the pumps and replace storage tanks at five locations. Of the 16 locations, 11 will convert in July and six will convert in August.
"It's a combination of a well-respected brand, and Mid Pac is the only locally owned gas provider," Yates told the paper. "And keeping the money in state, we just think that 7-Eleven agreed."
With the addition of the new locations, Mid Pac Petroleum will now offer Hawaii residents 68 locations across the state to fill up with 76 gasoline.
Aloha Petroleum is owned by a British Virgin Island company, which in turn is owned by private, primarily U.S. investors.
Aloha Petroleum and Seven-Eleven Hawaii have had a marketing relationship for approximately 30 years, Larry Adams, Aloha Petroleum's director of sales and marketing, said in a statement provided to CSP Daily News. Its contract for 17 of the older 7-Eleven fuel locations has expired. One of these locations will close permanently and the other 16 will be rebranded, he said.
"We will continue to provide Top Tier quality gasoline and service to our customers at our more than 50 Aloha-branded locations on Oahu and the Big Island, including several strategic Aloha 7-Eleven locations that will remain under contract with us," he said.
He added, "This development will not have a major impact on our business, employee staffing or our position as a major fuel marketer and convenience store operator in Hawaii. Recently, Aloha executed four new leases to develop new retail sites starting next year. This is part of Aloha's broader, strategic plan to better serve our customers. In the coming months, we will complete the process of reimaging our company-operated fueling operations with a bold new look. Additionally, Aloha has commissioned CBX...to develop a new image for Aloha's company-operated convenience store network, an initiative that is well underway."
(Click here for previous CSP Daily news coverage of Aloha's new image with CBX.)
Mid Pac Petroleum is a Honolulu-based petroleum marketer and distributor and wholly owned subsidiary of Koko'oha Investments Inc. Mid Pac Petroleum is the only locally owned and operated company engaged in the business of acquiring, distributing and marketing petroleum products throughout the state of Hawaii, it said. With the exclusive right to use the 76 brand for petroleum sales in Hawaii, it supplies 68 76-branded stations in addition to fulfilling contracts to marketers and commercial customers in Hawaii.
Seven-Eleven Hawaii is a local corporation operating a chain of c-stores on the islands of Oahu, Maui, Kauai and Hawaii.
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