Report: 7-11 dumps Citgo (Update: Dropped before)
posted at 10:34 pm on September 26, 2006 by Ian
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.
Breaking on Hot Air