Report: 7-11 dumps Citgo (Update: Dropped before)

posted at 10:34 pm on September 26, 2006 by Ian

WFLA of Orlando, FL is reporting:

BHL has obtained a copy of a letter from Janey Carpenter, Manager of Consumer Affairs that states 7-11 Stores are ending their 20-year supply agreement with CITGO Petroleum Corp. According to Carpenter, the contract ends next week and 7-11 is now making the switch to its own branded gasoline. The company says the change has nothing to do with derogatory comments made last week by Venezuelan President Hugo Chavez at the United Nations. Nevertheless, 7/11 Stores will begin selling in October gas provided by US companies, such as Tower Energy Group in Torrance, CA., Sinclair Oil of Salt Lake City and Frontier Oil Corp of Houston. Carpenter says the signs will start to change, with CITGO signs coming down from the stores’ gas canopy and off gasoline dispensers. More than 2,100 stores are affected. While most of the signs will be changed by end of ’07, not all CITGO signs will be off gas canopies until ’08.

Update: Susser Holdings dropped Citgo a few weeks ago:

Valero’s gain is CITGO’s loss. In awarding Valero a virtual supply exclusive on its 320-plus company-operated stores, Susser Holdings Corp., Corpus Christi, Texas, is radically downsizing its 18-year relationship with CITGO, a company that is undergoing a significant realignment of its own.

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Gee, next time Hugo courts Casey’s mom it will be the drive through at Jack in the Box.

bbz123 on September 26, 2006 at 10:37 PM

Excellent news!

7-11 acts for Americans who are too uninformed to do so for themselves.

DannoJyd on September 26, 2006 at 10:53 PM

This may come as a surprise to a lot of you but on various Naval Stations at the Exchange gas stations Citgo is sold. I used to live in VA Beach, VA, and at Oceana NAS (well the last time I was there which was 4 years ago) they sold Citgo. I believe it was the same at NAB Norfolk as well which is the larges Naval Station East of the MS. I am glad that 7-11 is doing away with Hugo’s gas and lots hope the Navy does the same thing.

Catie96706 on September 26, 2006 at 11:01 PM

No way that’s awesome if it’s for real. 7-11 was the only place I noticed Citgo sold in my area. Makes me want to buy a slurpee and a good ol American hot dog!

Drtuddle on September 26, 2006 at 11:10 PM

Well well well..a case of reaping what you sow? GOOD!

labwrs on September 26, 2006 at 11:16 PM

My family has been boycotting CITGO for a couple of years, and the week before Hugo’s recent speech, I noticed our local CITGO station’s sign was being covered with a Texaco sign.

Melba Toast on September 26, 2006 at 11:27 PM

I just passed a 7-11 today and wondered whether or not they would sit on the sideline… this is very encouraging news!

I just posted this from Mac Johnson with a lot of great info on the history.

Texas Fred took the initiative with what seems to be evolving into an official site too.

MT on September 26, 2006 at 11:56 PM

A decision like this takes quite some time for someone like 7-11. However, it could well have been initiated by previous antics of the Castro’s Minnie Me.

Mike O on September 27, 2006 at 12:02 AM

Hey, the Florida Turpike Authority is telling them to stick it up their buts too. No more Citgo’s on the Sunshine states main artery. Hooha!

auspatriotman on September 27, 2006 at 1:30 AM

7-11 just gained much in my eyes – anything that can detract from Hugo Chavez is a good thing for America.

What Great News!

omegaram on September 27, 2006 at 1:44 AM

When asked why 7-11 was dumping Citco 7-11’s reply was “The devil made me do it”

Wade on September 27, 2006 at 8:18 AM

One of my congressmen,Adam Hasner (R), here in florida is trying get floridas dept. of transportation to end its contract with Citgo. They supply about 46 stations along the Ronald Reagan Turnpike. We’ll see if he gets any support from Chavezs’ fellow democrats.

roninacreage on September 27, 2006 at 8:44 AM

It’s not that big of a deal. Valero refineries are designed to handle the heavy oils produced in Mexico and Venezuela, so it’s likely that the oil is coming from one of those sources even though it’s not labeled ‘Citgo’.

Kevin M on September 27, 2006 at 9:15 AM

Chavez also spurred a Freedom Fry moment here in Boston; a city councilor now wants to take down the famed Citgo sign that looms just outside Fenway’s Green Monster. No joke.

Alden Pyle on September 27, 2006 at 9:23 AM

My family has been boycotting CITGO for a couple of years,

That’s great, but basically you just bought the same gas from another station. Gas companies freely buy and sell gas from each other, so when you don’t buy gas from Citgo, they just sell it to another company and there is no net effect on Citgo’s profits.

Who will be hurt by a Citgo boycott? Not Hugo Chavez and Venezuela, but the local guy (presumably an American) who owns your neighborhood Citgo franchise.

Lehuster on September 27, 2006 at 9:33 AM

I’ve been boycotting Citgo for a while now too. Good job 7-11! Once they’re through their stock of Citgo gas, I can get a hotdog and my car can fill up too. Now we can both have gas. :-)

Mojave Mark on September 27, 2006 at 10:10 AM

This could just be a smart supply decision. If your main product is supplied by a crazy man heading for a bruising with the USA, it might be time to switch brands. A future blockade of Venezuela might cause a shortage of inventory.

Hening on September 27, 2006 at 10:18 AM

they just sell it to another company and there is no net effect on Citgo’s profits.

Well it’s still a symbolic gesture! When we gonna start pulling out all that sweet Gulf of Mexico oil we found!

Drtuddle on September 27, 2006 at 10:22 AM

Who will be hurt by a Citgo boycott? Not Hugo Chavez and Venezuela, but the local guy – Lehuster

Everybody is a local guy

If a local guy asked for help to get out from under Citgo he would likely get some local support.

My question: does anyone know anything about Shell Oil upsetting the radical islamist? Most gas stations where I live are islamic owned. Many of them around here have recently dumped Shell for BP.

Just curious.

While on the subject, it is a miserable experience around these parts to deal with hostile gas station owners with alter allegiances.

entagor on September 27, 2006 at 10:28 AM

And the 7-11’s around here have upgraded. They sell great coffee at a decent price.

This is the best upgrade of all

entagor on September 27, 2006 at 10:29 AM

You know, 7-11 is a great american company that never receives the accolades it deserves. The company provides thousands of products at good prices, often cheaper than what you could get at a grocery store. They have strict corporate hiring guidelines, and is probably the most diverse company in the United States. (Libs never recognize this!) Yes, they hire lots of hard working immigrants who are here legally, and 7-11 goes out of their way to try to pair and team people of like nationalities at stores to assist in the teamwork. And they are required to use English on the job when dealing with customers.

7-11 literally wrote the book on processes and procedures and how to use them to maximize time and value for the customer. Additionally, they developed corporate security guidelines for running a convenience store that has been universally adopted by just about all other small businesses.

And their employees are some of the hardest working of our community. They do have the best fountain sodas, coffee, hotdogs and fresh deli snacks too. Always been a fan, always will be.

BelchSpeak on September 27, 2006 at 10:53 AM

When asked why 7-11 was dumping Citco 7-11’s reply was “The devil made me do it”

Wade on September 27, 2006 at 8:18 AM

That was a good one Wade!

Good for 7-11!!

I agree with you BelchSpeak from personal experience with 7-11 corporate. They are very community conscious.

I know there is often a lot of joking around (and sometimes anomosity) about neighborhood gas stations being owned by immigrants, muslims and otherwise. But I take it as a sign of how immigrants, and I’m talking legal ones, assimilate into our culture and take advantage of living the “American Dream”. I’d be more concerned if the government funded housing was filling up with immigrants than the local conveinence stores.

Texas Gal on September 27, 2006 at 12:55 PM

“when you don’t buy gas from Citgo, they just sell it to another company and there is no net effect on Citgo’s profits”

O Contraire, Lehuster. Their oil does indeed get sold, but it has a tremendous effect on Citgo’s profits. When they cannot sell their gas, they are forced to sell it in bulk to a competitor at reduced profit. Boycotting Citgo won’t leave them penniless, but it will certainly help to keep them barely profitable, which is a reasonable goal in this instance.

Kevin M on September 27, 2006 at 3:33 PM

To bad for the employees of Citgo. It is an old, hard-working Houston based company that happened to get it’s stock bought by Hugo’s home country. Sh*t happens in the stock market.

Shmo on September 28, 2006 at 10:31 AM