DALLAS -- Don't let the truth get in the way of a good story. So the saying goes in media circles. Such appears to be the case with the latest purported skirmish involving 7-Eleven and CITGO. Several media outlets, jumping on an Associated Press story, reported that 7-Eleven Inc. was severing its 20-year fuel-supply relationship with CITGO Petroleum Corp. because of Venezuelan President Hugo Chavez's political rant last week against U.S. President George W. Bush.
Yesterday, both Houston-based CITGO and Dallas-based 7-Eleven sought to dial down the rhetoric [image-nocss] from one of international political import to one of simple business between two concerns.
Speaking to Venezuelan state channel Venezolana de Television, CITGO chief executive Felix Rodriguez chastised American media and tried to put the deal in its proper perspective. "Now they want to exploit all this for political gain, but this is a commercial relationship that is about to end on September 30 as laid out in a contract.
On this point of misunderstanding, 7-Eleven spokesperson Margaret Chabris, whose quotes Wednesday inadvertently helped fuel the political maelstrom, agreed with Rodriguez. We're very concerned that many in the media misrepresented the story, she told CSP Daily News. The fact that our 20-year supply agreement with CITGO is coming to an end one week after President Chavez was in New York was coincidental. It had absolutely nothing to do with our relationship with CITGO, who has been a good partner.
On Wednesday, Chabris, when asked by reporters about the politics of the last week and 7-Eleven's cessation of CITGO, said, "Regardless of politics, we sympathize with many Americans' concern over derogatory comments about our country and its leadership recently made by Venezuela's president. Certainly Chavez's position and statements over the past year or so didn't tempt us to stay with CITGO.
On Thursday, Chabris reiterated to CSP Daily News that 7-Eleven's fuel moves were not premised on politics, but rather on the retail giant's decision to optimize its powerful branding presence to the forecourt.
Indeed, the August issue of CSP magazine reported that 7-Eleven was piloting an ambitious private-label fuel program with plans to roll it out to its network of 2,100 sites with fuel islands. CITGO has been great. They've been a tremendous supplier. They've given us a Big Oil presence, 7-Eleven president and CEO Joe DePinto said then. However, we think that, given the current state of the market and the power of the 7-Eleven brand, this is a good time to test a 7-Eleven gasoline.
About a month after 7-Eleven launched its private-label brand in June, CITGO announced it would pull out of 10 states and debrand approximately 1,800 locations over a 12-month period. The move, many observers said, had nothing to do with the 7-Eleven separation.
CITGO is a subsidiary of Venezuela's state-run oil company and, as a result, has felt some fallout from the political situation in Venezuela. Most recently, a Florida state lawmaker proposed that CITGO gas stations be kicked off the state's turnpike.
The move followed last week when Chavez called Bush the devil and an alcoholic.
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