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Parkland announces acquisition of Conrad & Bischoff Inc.

Move establishes a new growth platform in the Pacific Northwest

Conrad_BishoffParkland Corporation, through its wholly owned U.S. subsidiaries, has entered into an agreement to acquire Conrad & Bischoff Inc. and its related companies.

With this  acquisition, Parkland will establish a fourth U.S. Regional Operating Centre (“ROC”) in Idaho Falls, ID.

C&B is a well-established retail, commercial, wholesale and lubricants business with annual fuel and petroleum product volume of approximately 700 million litres. Family owned and operated since 1959, C&B’s operations are concentrated in the markets of Idaho and western Wyoming, with additional distribution capability into Utah, Nevada, Montana and other states.

“This acquisition checks all the boxes of our U.S. growth strategy and complements our existing ROCs,” Doug Haugh, president of Parkland USA, said in a release. “C&B strengthens our supply advantage, brings a high-quality retail network and offers a long runway for organic growth.”

The transaction includes 58 retail locations, comprising 19 company-owned sites and 39 retail dealer sites. In addition, terminal operations with combined tank storage of 30 million litres and capacity for 88 rail cars adds significant supply optionality in PADD IV.

“In addition to adding an exceptional team, C&B creates a springboard for growth throughout the Pacific Northwest,” said Haugh. “We continue to profitably grow our U.S. business and will remain disciplined in our appraisal of the many opportunities we see in front of us.”


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Parkland hits new heights in low carbon fuel production

Company sees 140% increase in co-processing over 2019

Calgary-based Parkland Corporation, an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator,has reported it has set a new record in low carbon fuel production at its Burnaby, B.C. refinery. Last year, the facility co-processed approximately 44 million litres of Canadian-sourced canola and tallow bio-feedstocks. Parkland aims to increase this to up to 100 million litres in 2021.

parkland-korgmeierOur refinery is focused on delivering the essential fuels our customers depend on, but with a lower carbon intensity,Ryan Krogmeier, SVP supply, trading, refining and health, safety and environment, said in a statement. This is a made in Canada success story. We continue to ramp-up our use of Canadian bio-feedstocks and scale our innovative co-processing capabilities. In addition to providing our British Columbia customers with low carbon gasoline, diesel and jet fuel, we are growing a competitive advantage that will win new business and drive organic growth.

The Burnaby refinery was Canada’s first facility to use existing infrastructure and equipment to co-process bio-feedstocks such as canola oil, and oil derived from animal fats (tallow) alongside crude oil to produce low carbon fuels. The resulting co-processed low carbon fuels have less than one-eighth of the carbon intensity of conventional fuels.

Parkland states that it is committed to a lower carbon future.“We co-processed approximately 44 million litres of Canadian-sourced canola and tallow bio-feedstocks in 2020, marking an almost 140% increase from 2019.

“In 2021, we aim to co-process up to 100 million litres of bio-feedstocks and offer our customers a variety of low carbon fuels, including an up to 15 percent renewable content diesel,” said Krogmeier, noting that the annual environmental benefit of producing low carbon fuels in 2021 is expected to be the equivalent of taking over 80,000 passenger vehicles off the road.


Chevron station manager Muhammad Zaghum Photo: Ken Born

Parkland ups the ante with foodservice and grocery

Goal is to enhance customer offer

This past September, Parkland Corporation (Parkland) announced it had acquired the license for the exclusive use of the On the Run (OTR) trademark in the majority of U.S. states from Alimentation Couche-Tard. This acquisition signifies a continued drive to expand its North American presence in fuel distribution and convenience retail. The deal gives Parkland a clear path to creating a unified brand in its c-store offering. It will also help drive sales increases at fuel dispensers and car wash sites. 

Photo: Ken Born

Photo: Ken Born

Parkland Corporation is a fully diversified fuel supplier with a refinery to end-user distribution capability that has made it an industry leader with sites that extend from the Arctic to French Guiana in South America. The company sold 22 billion litres of gasoline in 2019 under 19 brands that it either owns outright or holds the right to utilize the name. These include consumer marquees such as Fas Gas Plus, RaceTrac, Pioneer, Ultramar and Chevron. Altogether, at the end of 2019, Parkland was present in 1,863 sites in Canada where the company owns 641 locations with dealers holding the remaining 1220. In the U.S., Parkland operates 58 c-stores and has 297 dealers. When combined with its supply and marketing activities, Parkland’s business spans 27 states. In the Caribbean, Parkland owns 75% of Sol, a company that distributes 4.3 billion litres of fuel to 23 countries at 496 retail sites under brands such as Esso, Shell and Sol.   

Ian White, Parkland

Ian White, Parkland

According to Ian White, Parkland’s SVP strategic marketing and innovation, the U.S. OTR deal is one that helps them develop a ‘super-brand’ across borders and follows up on the 2016 purchase of CST Brands and their Canadian On the Run sites. “We have around 300 On the Run/Marché Express*(*Quebec locations) sites in Canada that are either company-owned or franchised. Our ambition is to have 1,000 sites by developing the dealer network as well as company-owned groups of stores,” he says, mentioning that the current initiative spearheaded by the OTR US acquisition will see changes from the forecourt to c-store. “This will include an increase in scale and assortment of products, greater emphasis on loyalty rewards, and mobile commerce.”

Parkland recently retrofitted 78 existing On the Run/Marché Express locations and constructed 12 flagship sites. To support their 3% to 5% annual organic growth target, Parkland will invest in new locations, new dealer growth, private label, their loyalty program, and enhancing the customer experience through the On The Run roll-out.

According to Parkland president and CEO Bob Espey, through the COVID-19 pandemic, the company has demonstrated its resilience with strong financial and operating performance and robust same-store sales growth across its convenience business. “Our performance during the worst of the downturn will allow the company to revive growth plans that it had paused during the early weeks of the pandemic – including numerous $1 million to $5 million projects, such as adding new gas stations or sites for commercial customers,” he says.

Photo: Ken Born

Photo: Ken Born

The company expects to go live with new store designs and features in 2021. Important is that Parkland will be able to leverage the scale of the OTR c-store offering and port it into the U.S. where they already have about 60 retail outlets attached to fuelling sites.  “Our biggest challenge will be to progress rapidly by meeting customer expectations,” says White, noting that with consumers more willing than ever to try new brands Parkland sees this as an ample opportunity to gain share in the massive U.S. market.

White reports that their recent loyalty program introduction is attractive to customers and helps them create a strong data platform as well as personal relationships that will build the business at both forecourt and c-store. The JOURNIE Reward Program launched last October and by the second quarter (2021) the Canadian national roll-out had been completed. Parkland partnered with banker CIBC to offer connectivity between their customers and CIBC’s credit and debit card clients. As well, Parkland launched a JOURNIE mobile app available for anyone to download on iOS and Android platforms. 

“In addition to enhancing our JOURNIE value proposition, our partnership with CIBC supports our strategy to grow our fuel sales volumes and increase foot traffic in our convenience stores,” says White. He notes that under the CIBC program, clients who use their payment cards receive 0.3 cents off per litre of diesel or gasoline as well as 3X loyalty points that can be used to purchase goods and services. Those without a CIBC card still get 2 points for every dollar spent in c-store and car wash and a point for every litre pumped. 

Parkland’s strategy is to address the needs of the customer at the point of decision. “There are three key customer intercepts for us; customers at the pumps, customers in their cars and customers with mobile devices. We want to offer strong messaging and value equation at the point of sale to enhance the overall experience our customers enjoy each time they drop by a location.”

Foodservice is another key feature of Parkland’s customer-focused retail strategy and OTR initiative. Many of Parkland’s fuel sites feature quality restaurant offerings, which gives customers greater choice, flexibility and convenience. 

Screen Shot 2020-02-25 at 10.04.23 AMLast February Parkland announced an enhanced relationship with Triple O’s, a BC-based restaurant chain operated by White Spot Hospitality that is both well known and appreciated by its patrons.  

“Our goal was to further strengthen our offer in foodservice,” says White. He reports that the Triple O’s partnership will create opportunities in all dayparts and help make Parkland locations destinations for more than just fuel or a car wash. Triple O’s and Parkland started working together in the BC market at first and then branched into Alberta and into Ontario where they are currently launching test sites. “We will look at the U.S. market for Triple O’s and will decide once we complete our assessment.”

Another important part of Parkland’s initiative is the launch of its private-label brands. In 2017, Parkland launched 59th Street Food Company, a private label entry that now offers close to 50 products in its assortment.   

Altogether, Parkland is creating a stronger value equation for its customers, greater definition for its sites thanks to unique offerings, and convenience. In Canada a Parkland brand is only 15 minutes from most homes, making it one of the country’s leaders among both c-store and fuel retail. 

The pandemic may have permanently altered some consumers’ shopping habits in favour of smaller locations, he said. “In our formats, it’s easy to access. You can see into the site from the outside and you can see the number of people. If somebody needs to run in quickly and grab something, they feel much safer doing that than potentially going into a larger-format retail site,” says Espey.

White concurs, echoing that COVID-19 has indeed had an impact on how consumers approach retail. Having a convenience retailer that is close to home, stocked with value-laden products that meet consumer demands and offer the quality customers expect is all part of the plan.

Originally published in the November/December issue of OCTANE. 


Story Distributing

Parkland announces U.S. acquisitions

Parkland Corporation has announced it has entered into a series of transactions to acquire the assets of two U.S.-based fuel distributors.
Story Distributing

Story Distributing operates Casey’s Corner c-stores

The company reported last week that it is working to acquire Story Distributing Company and its affiliates. Story is a well-established retail and commercial fuel business headquartered in Bozeman, Montana. This acquisition adds scale and density to Parkland’s existing Northern Tier Regional Operating Center (ROC) and expands its presence in the high-growth Montana and Idaho markets.

As well, Parkland announced that it is taking on Carter Oil Company, Inc. Carter is a wholesale and commercial fuel distributor based in Flagstaff, Arizona. This acquisition complements Parkland’s existing Utah and Arizona operations within the Rockies ROC and expands Parkland’s presence in the high-growth Northern Arizona region.
Altogether, these acquisitions add 13 company retail sites with strong non-fuel contribution and approximately 40 retail dealers, as well as commercial fuel and lubricant distribution capabilities to Parkland’s U.S. portfolio. The acquisitions are projected to add annual fuel and petroleum product volume of approximately 275 million litres to the company’s U.S. segment.
“We continue to build momentum in the US and advance our growth strategy,” said Doug Haugh, president of Parkland USA. “These acquisitions expand our presence in high-growth regions and provide additional opportunities to leverage our On the Run convenience store brand and increase our supply and distribution capabilities. We see an attractive pipeline of opportunities and are well-positioned for further growth.”
The Carter transaction is expected to close in the fourth quarter of 2020. The Story transaction is expected to close in early 2021.

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Parkland appoints Marcel Teunissen as CFO

0Parkland Corporation is welcoming Marcel Teunissen as chief financial officer effective December 1, 2020.

Teunissen joins Parkland from Royal Dutch Shell, where he was EVP, finance, integrated gas and new energies, responsible for the financial management of Shell’s global portfolio of LNG assets and its emerging new energy business. With more than 23 years of experience, he has worked globally across the entire energy value chain, with an emphasis on refining, retail and related infrastructure.

“I am delighted to welcome Marcel to the Parkland Team and look forward to his contributions as we embark upon our next phase of growth,” Bob Espey, president and CEO Parkland, said in a release. “His leadership experience, financial and business acumen, and broad global experiences make him an ideal fit to help drive our growth strategy and deliver market-leading results.”

Teunissen brings an extensive background in corporate finance, treasury, financial planning and analysis, tax, strategic planning and commodity & financial risk management. He has also worked in many of the markets across Parkland’s diverse geographies, including Canada and the Caribbean.

Darren Smart, who has served as interim CFO since December 2019, will return to his role of SVP, strategy & corporate development, which will be expanded to include developing and leading Parkland’s low-carbon and renewables strategy.


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Parkland ramps up growth the latest U.S. acquisition

Screen Shot 2020-11-16 at 1.10.47 PMParkland Corporation has announced it will acquire the assets of Richfield, Utah-based Sevier Valley Oil Company (SVO).

Based in Richfield, Utah, SVO is a well-established retail and commercial fuel business with annual fuel and petroleum product volume of approximately 350 million litres. SVO’s primary operations are in Southwestern Utah, along with a presence in Northern Utah and Colorado. The acquisition of SVO adds seven retail locations and over 20 retail dealers in addition to robust diesel and lubricant distribution capabilities.

“We continue to expand our US footprint and execute on our growth strategy,” says Doug Haugh, president of Parkland USA. “This acquisition meaningfully expands our retail presence in rapidly growing Southern Utah and presents a fantastic opportunity to leverage our North American On the Run convenience store brand, enhance our customer proposition and drive incremental value.”

“The acquisition strongly complements our existing Rockies Regional Operating Center and positions us for further organic and acquisition growth in neighbouring Nevada and Arizona,” added Haugh. “We are delighted to welcome Garrett Ekker and the SVO team to Parkland and look forward to the continued growth of our USA business.”

This acquisition is consistent in value with Parkland’s previous U.S. transactions. Funding for the deal will come from existing credit facility capacity. The transaction is expected to close in the fourth quarter of 2020. 


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Parkland Fuel third quarter profit surges to $76 million despite weaker sales

Parkland Corp. says its net earnings surged to $76 million during the third quarter despite a 24% decrease in revenues.

The Calgary-based fuelling company says the earnings attributable to Parkland equated to 51 cents per basic share, up from 16 cents per share or $24 million a year earlier.

Revenues for the three months ended Sept. 30 were $3.5 billion, down from $4.6 billion in the third quarter of 2019.

Parkland says its fuel and petroleum product volume is continuing to recover from the impact of COVID-19 and was within five per cent of its third quarter 2019 volumes.

In Canada, steady volume recovery, strong fuel margins and convenience store sales drove a 23 per cent increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from the prior year to $128 million.

Fuel volume decreased seven per cent to 2.3 billion litres due to the impact of COVID-19. Convenience store same-store sales were 10.7%, with strength of its rebranded On the Run sites.


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Parkland Fuel third quarter profit surges to $76 million despite weaker sales

Parkland Corp. says its net earnings surged to $76 million during the third quarter despite a 24 per cent decrease in revenues.

The Calgary-based fuelling company says the earnings attributable to Parkland equated to 51 cents per basic share, up from 16 cents per share or $24 million a year earlier.

Revenues for the three months ended Sept. 30 were $3.5 billion, down from $4.6 billion in the third quarter of 2019.

Parkland says its fuel and petroleum product volume is continuing to recover from the impact of COVID-19 and was within 5% of its third quarter 2019 volumes.

In Canada, steady volume recovery, strong fuel margins and convenience store sales drove a 23% increase in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) from the prior year to $128 million.

Fuel volume decreased seven per cent to 2.3 billion litres due to the impact of COVID-19. Convenience store same-store sales were 10.7%, with strength of its rebranded On the Run sites.


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.

parklandontheruncanadainteriorphoto

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.


parklandontheruncanadaexterior-photo

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.”