CHELSEA, Mass. -- Gulf Oil LP intends to strengthen its branded network in the next seven years, while diversifying its marketer base and moving into new territories through a value-added unbranded offer, according to president and CEO Joe Petrowski.
Ultimately, we want to grow the company, Petrowski told CSP Daily News. If you're constrained by geography, you're limited in terms of how much you can grow. We still think there's tremendous potential to grow the Gulf flag. But in the unbranded market, unlike in branded, we're not geographically bound. [image-nocss] We don't think we'll limit [our unbranded growth] to New England. We intend to diversify and go national in a lot of our reach.
Through unbranded subsidiary Great Island Energy, Gulf will supply not only petroleum products but also risk-management and financial services to independent retailers and other industrial and commercial firms. As reported last week in CSP Daily News, Gulf recently added Walter Brickowski as director of unbranded marketing, a new position within the company, according to Petrowski. Brickowski has more than 20 years of experience on the wholesale side of the petroleum business. Prior to joining Gulf, he worked for Louis Dreyfus Energy, Transmontaigne, Premcor and Valero.
The unbranded business is one where traditionally this company has not been focused, Petrowski said. Geography does constrain a branded network somewhat; you have to be in contiguous states because of advertising programs and customer recognition. Even if we had Gulf in Wyoming, we would not plop down a bunch of orange discs in Wyoming.
We can grow our business with unbranded [in such situations], he continued. What can we do for distributors besides guaranteeing them supply? What kind of financial packages can we bring in? We see real positive growth with risk management [for unbranded marketers]; that's an area we can add value.
Gulf also plans to bolster its branded side of the business. With its current network consisting of approximately 2,500 locations throughout New York and New England, Gulf believes it can easily grow to 3,500 branded locations within the next seven years, according to Petrowski. Gulf Oil markets its recognizable, orange-and-blue flagship brand as well as the Exxon brand, for which it has marketing rights until the end of the decade. Petrowski hopes to extend ownership of the Exxon brand in New England beyond 2010, but that's up to ExxonMobil, he said.
Part of Gulf's growth strategy includes investing in and adding to its existing terminal network. Presently the company has 12 proprietary oil terminals and a network of more than 50 other supply terminals. We'd like to acquire more terminals and take our existing terminals and add more value to them through capital investments, Petrowski said. We have 12 terminals now, and 20 would be better than 12, but we would never want to cap it.
Adding new terminals and refurbishing individual components of its existing network would improve all facets of Gulf's business, according to Petrowski. If you're going to franchise with a company, whether it's Gulf or CITGO or whoever, the terminal network should be one of the first things you look at, he said. A company without a deep terminal network doesn't bring a lot to the table.
Gulf Oil LP is one of the largest wholesalers of refined petroleum products in the Northeast. In addition to its motor-fuels network, Gulf supplies heating oil, diesel fuel, jet fuel and kerosene to branded retail outlets through its Gulf brand and, in the seven states of New England and New York, the Exxon brand. Gulf, through wholly owned subsidiary World Energy, is the nation's largest distributor of biodiesel.
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