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Ian White, Parkland

Parkland leaders discuss On the Run deal

UnknownCalgary-based Parkland Corporation will acquire the license for the exclusive use of the On the Run trademark in the majority of U.S. 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. The acquisition positions Parkland to expand On the Run across the United States to create a unified, North American convenience store brand.

Parkland is a convenience/gas leader with more than 1,850 fueling sites in Canada featuring brands such as, Ultramar, Esso, Fas Gas Plus, Chevron, Pioneer and Race Trac. The company is also a major presence in the U.S and Caribbean markets. In the U.S., Parkland owns c-stores, supplies independently owned gas stations, delivers bulk fuels and supplies lubricants. U.S. brands include, Rhinehart Oil, Hart’s and Farstad Oil, as well as Superpumper, Kellerstrass Oil Company, KB Express, Mort Distributing, ConoMart Super Stores, and Tropic Oil. In the Caribbean, Parkland offers brands such as Esso, SOL and Shell at 496 locations in 23 countries.

On the Run is an international convenience retail brand developed by ExxonMobile in the U.S. Parkland Corporation took on the Canadian rights to use the brand in 2016 after Imperial Oil divested its retail network. Before Parkland’s licensing announcement, the company operated more than 300 On the Run sites at gas stations operating under various brands.  

Ian White, Parkland

Ian White, Parkland

According to Ian White, SVP, strategic marketing & innovation at Parkland, On the Run is an established retail brand that can be quickly and efficiently scaled by leveraging the capabilities already established in the Canadian market. He suggests that the time is right to create a unified North American retail and convenience store brand. He points to five strategic rationals for the decision.

  1. Create a unified North American convenience brand by expanding On the Run across the U.S.
  2. Capture efficiencies through common brand collateral, product assortments, private label product ranges and operational continuity.
  3. Opportunity to rebrand existing U.S. convenience stores and efficiently incorporate the On the Run convenience brand to newly developed sites.
  4. Greater optionality and a strong convenience store foundation for future U.S. merger and acquisition activities.
  5. Support the organic growth of the dealer business by providing an enhanced, bundled offer that combines a leading convenience store brand with multiple forecourt fuel brands.

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Doug Haugh, president, Parkland USA, tells OCTANE  that the initiative builds on successes in brand image, private-label goods and product assortment already established in the Canadian market. “Our U.S. customers will enjoy an enhanced interior and exterior rebranding elements,” he says, noting larger and brighter canopies and a variety of new product offerings coming to locations soon.


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Parkland Fuel to expand On the Run convenience store brand across the United States

parklandontheruncanadainteriorphotoParkland Fuel Corp. plans to expand its Canadian On the Run convenience store brand across the United States after acquiring the licence in most states.

The Calgary-based company says creating a unified North American brand will “harness the advantages of our scale. ”

Ian White, Parkland senior vice-president strategic marketing and innovation, says the change comes as it proceeds with its growth strategy, which includes future acquisitions.

Parkland says it has acquired the perpetual licence for the exclusive use of the On the Run trademark and the option to purchase the trademark altogether.

parklandontheruncanadaexterior-photoParkland acquired the On the Run brand and franchise network in Canada from Imperial Oil in 2016 and has 300 of them in 1,849 gas stations operating under various brands including Ultramar and Pioneer.

Parkland currently has 58 convenience stores in the U.S. operating under the Harts, ConoMart Super Stores, and Superpumper, KB Express banners.

“The On the Run retail brand provides a solid platform for our continued U.S. growth,” added Doug Haugh, president, 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.”


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Parkland posts lower Q2 net income of $32 million as fuel sales fall by 14%

UnknownService station operator Parkland Corp. is reporting higher-than-expected second quarter earnings despite pandemic-related hits to its sales volumes.

The Calgary-based company says net income in the three months ended June 30 was $32 million on revenue of $2.7 billion, down from $105 million on revenue of $4.85 billion in the same period a year ago.

Its net earnings per diluted share were 21 cents, compared with 70 cents last year. Analysts had expected a loss of 38 cents, according to financial data firm Refinitiv.

Parkland, which purchased the Caribbean fuel retailer Sol early last year, says volumes in its international segment are trending about 20% lower in July compared with last year because some markets have temporarily increased restrictions due to rising COVID-19 cases.

It says overall fuel and petroleum product volumes decreased by 14% in the second quarter compared with the year-earlier period but strong fuel margins and convenience store traffic, along with cost cutting, drove an over 30% increase in adjusted earnings in Canada.

Parkland, which sells fuel through more than 2,600 service stations in Canada, the United States and Caribbean, cut its budget to $275 million in March, down from its earlier guidance of $575 million. It says it will restore $50 million to account for stronger cash flow than expected and higher maintenance spending.

“We delivered solid margins, won new business and successfully managed our cash flow by reducing costs and controlling capital expenditures,” said CEO Bob Espey in a statement.

“Our financial and operating performance through the second quarter demonstrates the flexibility and resilience of our diversified business model. While we remain nimble in light of ongoing COVID-19 uncertainty, we are confident in our ability to advance our growth agenda.”


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Parkland teams up with Amazon Web Services to ramp up digital transformation

UnknownParkland Corporation is collaborating with Amazon Web Services to use analytics in order to improve its logistics and enable frictionless commerce.

“We are excited to be teaming up with AWS to advance our strategic priorities and support our ambitious organic growth targets,” Ian White, SVP strategic marketing and Innovation at Parkland, said in a release. “AWS is a renowned global technology leader who is laser-focused on customer experience and innovation.”

The goal, adds White, is to uncover valuable insights into “customers’ needs and preferences to provide enhanced services, products and personalized offers.”

The company says it has been building its internal capabilities to leverage digital technology trends for some time and has identified several technologies and customer-centric opportunities that support organic growth. These include:

  • Loyalty program data optimization (including the Canadian JOURNIE rewards loyalty program) and personalized customer offers;
  • Real-time price optimization using enhanced data feeds and machine learning;
  • Progressing a vision for the convenience store of the future.

Next steps include “monitoring fuel inventories in real-time and optimizing routing and distribution, harnessing digital to help scale the business without adding significant cost and complexity, and improving the speed and efficiency of M&A integration.”

White says that by embracing digital to focus on the customer experience, Parland aims to drive organic revenue growth and margin expansion. “Digital services are changing constantly and teaming up with AWS helps us channel those developments to elevate our customer focus and enhance our core competencies of retailing, customer loyalty, pricing, supply and distribution.”


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Parkland Fuel sees $79 million loss in first quarter on higher revenues

The Calgary-based company says that equalled a loss of 53 cents per diluted share, compared with a profit of 52 cents per share or $77 million a year earlier.

Revenues for the three months ended March 31 increased 3.4% to $4.36 billion from $4.2 billion in the prior year.

Fuel and petroleum product volume increased 12% to six billion litres.

Analysts expected Parkland to lose one cent per share on $4.37 billion of revenues, according to financial markets data firm Refinitiv.

The company says it removed more than $300 million of capital expenditures from its plans this year.


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Parkland nears completion of Burnaby refinery turnaround

Parkland Fuel Corporation is nearing completion of the required work for the 2020 Burnaby refinery turnaround and has begun the startup sequence for the facility.

In statement, the company explained: “We expect an approximate two-week process to reach full operational capability when accounting for additional coronavirus preventative safety measures. COVID-19 has required Parkland to change processes and procedures in response to guidance from Provincial health authorities. This has led to a decrease in the number of staff on site and lower productivity.

“I would like to thank the Parkland team and contractors for all their hard work during this maintenance event,” said Ryan Krogmeier, SVP, supply, trading, refining and HSE. “We are proud of the outstanding safety results to date and the effort exhibited by everyone involved.”


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Parkland acquires ConoMart Super Stores in the U.S.

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has entered into an asset agreement to acquire seven retail sites located in and around Billings, Montana. All seven retail sites feature a strong convenience store offering and a Conoco-branded forecourt.

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“This acquisition expands our Montana business and scales our existing Northern Tier Regional Operating Centre,” Doug Haugh, president of Parkland USA, said in a release. “ConoMart Super Stores is a well-run, customer-focused business and we look forward to welcoming the team to Parkland.”

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator across Canada, the United States, the Caribbean region and the Americas.


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Parkland expands foodservice offering with Triple O’s restaurant deal

UnknownParkland Fuel Corporation is entering into a multi-year agreement to strengthen its range of freshly prepared and quality meal options by expanding its long-standing relationship with Triple O’s restaurants.

This exclusive agreement builds on the success of Parkland’s existing network of On The Run and Town Pantry convenience stores that already feature Triple O’s in British Columbia – Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. This paves the way for more restaurants in British Columbia, as well as Triple O’s entry into Alberta and Ontario.
Screen Shot 2020-02-25 at 10.04.23 AMTriple O’s Restaurants is a division of White Spot Hospitality – a Canadian restaurant chain since 1928 – that operates more than 60 quick service restaurants throughout British Columbia, Alberta and Asia. The quick service burger restaurant currently operates at select Parkland Town Pantrys in British Columbia.
“We look forward to working with Triple O’s to expand their presence in B.C. and launch their high-quality food brand and award-winning menu into Alberta and Ontario,” Ian White, Parkland’s senior vice-president of strategic marketing and innovation, said in a release. “As part of our organic growth strategy, our goal is to include a high-quality food offering in every new and retrofitted On the Run convenience store.”
The combination of Parkland’s network of fuel brands with Triple O’s freshly prepared breakfast, lunch, dinner and snack options complement Parkland’s existing food offering and is a natural extension to its On the Run convenience store brand.
“This is an exciting day for the Triple O’s family,” said Warren Erhart, president of White Spot Hospitality. “We have a longstanding and successful partnership with Parkland in British Columbia and look forward to expanding on this success in new markets. With consumers’ evolving needs for convenience and premium quality food, it is with great pride and passion that we are now able to share our delicious and craveable taste of Triple O’s with our signature burgers, fresh-cut Kennebec fries and hand-scooped milkshakes, to so many more Canadians.”

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Parkland acquires U.S.-based Kellerstrass Oil

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, it has entered into an agreement to acquire the entities and assets of Kellerstrass Oil Company.

UnknownBased in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming.

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through its retail, commercial and wholesale divisions.

In a release Parkland stated: “In addition to highly efficient trucking, routing and distribution practices, Kellerstrass brings a strategic 17-car rail spur and storage assets, commercial card locks and an 84-location dealer business. Kellerstrass will complement and strengthen Parkland’s existing Rockies Regional Operating Centre.”

The acquisition is part of Parkland’s efforts to expand its U.S. footprint, says Doug Haugh, president of Parkland USA. “We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming and look forward to welcoming the Kellerstrass team to Parkland.”

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2020.


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Parkland completes Mort Distributing acquisition

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has completed the previously announced acquisition of the assets of Mort Distributing, Inc.

Mort is a marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers across Montana. Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator.