Fuels Market News 2020 Fuel Leaders by Fuels Market News

SUPPLEMENT 2021

Rankings for the Top 50 Fuel Brands in the Convenience Retailing Industry

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FuelsMarketNews.com

2020 Fuel Leaders

SUPPLEMENT 2021

Methodology

Driving Factor

Behind the Top 50 Rankings

Behind the 2020 Fuel Leaders’ rankings.

Cutbacks in logistics could make the peak 2021 driving months a challenge for marketers.

From Wawa to RaceWay, the leading companies are laser-focused on customers and innovation.

The Top 5 From coast to coast, these leading brands excel in their markets.

2020 Fuel Leaders | 1

Behind the 2020 Fuel Leaders Rankings

020 Fuel Leaders published by Fuels Market News and NACS is based on data collected by the Oil Price Information Service (OPIS) and drawn from hundreds of retail operations of all sizes throughout the fuel retailing industry. OPIS tracks the performance of over 250 fuel retailers and ranks them in an annual report. Through a special partnership with OPIS, NACS is presenting a targeted subset of this data in the inaugural 2020 Fuel Leaders. Analysts use the OPIS rack-to-retail margin methodology to estimate the gross profit on a gallon of gasoline. While some chains may pay more or

2 | 2020 Fuel Leaders

less than the posted rack, the OPIS methodology provides a reasonable metric for each chain. OPIS also tracks the market share based on volumes sold on the WEX Universal fleet card. While fleet purchases may vary slightly from how the everyday consumer buys fuel, the analysis shows that they trend closely, and the relative consistency makes it a valid datapoint. As a further enhancement, OPIS partners with Orbital Insight, a company that tracks location information on more than 116 million cellphones in the U.S. through various mobile apps. OPIS geo-fenced all 130,000 stations FuelsMarketNews.com

PHOTO©ISTOCK/WENDELLANDCAROLYN

(by hand) in the country to track the number of times a device visits a convenience store to provide insight into which sites are seeing the most potential customers. While there may be regional disparities in smartphone usage, the relativity of visits between a site and its direct competitors is unprecedented. These cellphone ping data are used to calculate an alternative market share for each brand. Getting the best estimate on each chain’s volumes starts with the monthly taxable gallon information reported on a state level by government entities. Analysts then apply two market share methodologies to estimate total gallons by calculating each chain’s market share in the state against the total taxable gallons reported each month, and then dividing that number by the count of stations to offer an approximate monthly volume per site. Matching the estimated volumes to the taxable gallons shows total profit on gasoline sales and estimated profit per site. Both methodologies are separate but also averaged together to try to flatten any biases in either technique. Taking it all a step further, analysts study the data on a localized level, comparing a chain’s sites to the other sites in the communities in which they operate within a one-mile radius. This information makes it possible to determine each brand’s market share against direct competitors. Researchers also calculate a head-to-head winning percentage by examining chain performance against competitors in the same community to identify which brand was more efficient. As an example, if “chain A” and “chain FuelsMarketNews.com

B” compete in the same 10 communities, and “chain A” was more efficient (market share divided by outlet share) in eight of those communities, that would indicate that “chain A” had an 80% winning percentage against “chain B.” OPIS ranks each chain in a variety of categories but weights them differently based on conversations with industry insiders on what they felt were the most important metrics. Estimated monthly profit per site is rated the most important category, followed by total overall estimated profits. Other categories ranked include price differential, overall market share, local market share, margins, property values and more. The final overall ranking takes weighted ranking by category into consideration to determine the chains with the best performance. Some chains in the report had thousands of sites with a huge multistate footprint, while others were small single-state operators with just a handful of locations. As OPIS notes, “In summary, this report is our best answer to the question we are so often asked. While we may not be able to tell you with 100% certainty who the most-profitable fuel retailer is, or which convenience store chain or major brand is the strongest, this data-rich report is an excellent relative approximation from which many critical insights can be gleaned.”

A head-to-head winning percentage is calculated by examining chain performance against competitors in the same community.

The full OPIS report containing additional and highly granular information on each chain is available for purchase from OPIS at www.info. opisnet.com/2020-fuel-leaders. 2020 Fuel Leaders | 3

Driving Factor Cutbacks in logistics could make peak 2021 driving months a challenge for marketers. BY TOM KLOZA

emand for U.S. motor fuels was increasingly “lumpy” even before the COVID19 pandemic. In 2001, for example, the Energy Information Administration (EIA) showed weekly gasoline supplied as low as 7.338 million b/d (late January) to as high as 9.176 million b/d in midsummer. The difference of 1.838 million b/d was much more substantial than the variations in the 1980s and 1990s. (Note: Only two 20th century weeks added up to a measurement of over 9 million b/d before the new century dawned.) Contrast that with the COVID-19 inspired volatility and variations of 2020 that drastically impacted consumption, prices and profits. The high tide mark for implied gasoline demand in 2020 came in the first half of March, when many U.S. residents had vague notions of a new virus

4 | 2020 Fuel Leaders

that had imperiled China and Italy. Gasoline demand hit 9.696 million b/d in the second week of March, and three weeks later, EIA measured demand at just 5.065 million b/d, a drop of 48%. OPIS Demand data ahead of Easter weekend 2020 suggested the lowest holiday motor fuel consumption since the Kennedy Administration. PRICE DIVERSITY Price really wasn’t a major factor in driving consumer decisions in 2020. Demand wasn’t catalyzed in states like Oklahoma, where average prices dropped as low as $1.367/gallon in mid-spring and couldn’t recover to above $2/gallon for the rest of the year. The diversity in prices among the states was record breaking: California topped out at $3.557/gallon on January 1 and bottomed at $2.74/ gallon on May 5.

In fact, retail prices were on the flat side when compared to the wholesale costs of fuel and crude. The price of WTI crude hit a record low of a negative $40.32/bbl on April 20, 2020. One year later, crude cost about $102/bbl more. There were many instances of wholesale rack prices (excluding taxes) for E10 dropping below 25 cents/gallon and a few instances where winter formulation fire sales pushed prices below 10 cents/gallon. By year’s end, the average rack price for E10 or reformulated gasoline was about $1.43/gallon, representing numbers six-to-14 times the spring lows. With price giving up its role as a primary consideration among motorists, there was less distinction between branded and unbranded gasoline than in prior decades. All gasoline marketers were beneficiaries of that lack of differentiation—retailers with supermarkets or even big box warehouses may not have disclosed bottom-line numbers for fuel, but circumstantial data suggest they made more money on gasoline in 2020 than in any previous year. Trip aggregation really benefited BJ’s, Costco, Kroger and similar companies. FuelsMarketNews.com

PHOTO©ISTOCK/XIJIAN

Average retail margins, measured by OPIS, hit a record high of 35.2 cents/ gallon for the year, but there were periods when 70 cents/gallon profits were more common. And it didn’t take the negotiating skills of Shark Tank for fuel marketers to parlay fuel surpluses into substantial discounts to posted rack prices. Deals well below average were nearly institutionalized in the Southwest, Front Range and portions of the Great Lakes. Clearly, the remainder of 2021 won’t live up to the daunting margin standards of 2020, but what lies ahead for the most widely anticipated driving season in recent memory? WHAT’S AHEAD Spring break 2021 has come and gone, but in some portions of the country it provided a dress rehearsal for something gasoline marketers really haven’t witnessed since 2018—a challenge to keep stations approximating vacation destinations “wet” with adequate fuel supply. Spring break destinations like Florida, South Carolina and Arizona saw scrambles to keep stations supplied with all grades of gasoline despite demand that was still lower than 2019 by 5% to 10%, according to OPIS DemandPro. Station outages occurred against the backdrop of nationwide days’ supply numbers that appeared adequate at a glance. The cutback in tank truck drivers, thanks to massive layoffs a year ago, may haunt the “just in time” inventory system that can be just intolerable without enough trucks on the road. And whereas “lumpy” gasoline demand was a challenge from season-to-season in the first 20 years of the century, the uneven nature of supply and demand may become more localized. FuelsMarketNews.com

PENT-UP DEMAND FOR TRIPS Retailers queried by OPIS have long suggested that Friday is the busiest day for fuel consumption in most weeks. But they’ve noticed that weekend purchases of motor fuels— defined roughly as Thursday p.m. through Monday a.m.—are now much more substantial than the middle of the week, thanks to pent-up demand for vacations and a dormant or challenged return to commuting. The takeaway from these new habits may be twofold. Social driving— including trips to the beach, mountains or sporting events—may recover much more substantially in the crunch time of the summer driving season. Stations near Disney World or national parks may surpass summer 2019 volumes. The definition of crunch time for many marketers is the stretch between the summer solstice and Labor Day. In 2019, those 12 weeks produced average gasoline demand of 9.63 million b/d. In 2020, the pandemic knocked the number down to 8.7 million b/d. The rogue EIA reading of 9.161 million b/d in late August was tied to hurricane-feared purchases and was not approached in the subsequent eight months. A practical view is that we will see plenty of summer 2021 weeks where gasoline demand surpasses 9.0 million b/d or even 9.5 million b/d. But consumption will be nowhere as ratable as it was in pre-COVID-19 driving seasons, with explosions of demand on mountain or beach routes and other escape destinations that were largely empty in 2020. Whether the U.S. logistics’ system can supply the 1,200 or so tank trucks to move that product each day from terminal to station may be the key challenge of this highly unusual season.

What lies ahead for the most widely anticipated driving season in recent memory?

Tom Kloza is global head of energy analysis, OPIS. He has analyzed and covered crude oil, refined products and gas liquids for four decades. He is a regular guest commentator for Bloomberg Financial Markets and NPR Marketplace.

2020 Fuel Leaders | 5

BEHIND THE TOP

RANKINGS From Wawa to RaceWay, the leading companies are laser-focused on customers and innovation. BY KEITH REID

6 | 2020 Fuel Leaders

he top 50 fuel brands in the industry range in size from 28 regional sites to nearly 6,000 locations across North America, each with diverse business models and outlooks for growth. One thing they all have in common, though, is perseverance. Of course, 2020 was an extraordinary year, and how each operation handled the challenges impacted individual company performance. As Tom Kloza, global head of energy analysis, OPIS, shares in his overview of the 2020 fueling environment (see page 4), demand for gasoline plummeted along with wholesale rack prices during the height of the pandemic, while retailers with fuel operations enjoyed record margins. It also was an extraordinary year “inside the box,” and store performance as part of an operation’s complete customer offer should be considered as well. NACS State of the Industry data indicate that total convenience store industry sales (fuel sales and in-store sales) were $548.2 billion in 2020. While total sales declined because of lower fuel sales, overall industry sales are still more than double what they were at the beginning of the century. In 2000, total convenience store sales were $269.4 billion. Total industry inside sales increased 1.5% to a record $255.6 billion in 2020 as customers frequented their local convenience stores to fulfill daily FuelsMarketNews.com

shopping needs. While total transactions declined 13.9% for the year, basket sizes increased 18.4% compared with 2019. The average basket size was $7.34 in 2020 vs. $6.20 in 2019. “Our industry saw significant shifts in purchasing patterns in 2020, and these changes will likely accelerate in 2021, both in what products are sold and how they are purchased, especially as mobile ordering, home delivery, curbside pickup and contactless payment continue to gain in popularity. The successful retailers will be those who continually adjust their offers as their customers redefine how they seek convenience,” said Andy Jones, president and CEO of Sprint Food Stores and NACS vice chairman of research and technology, at the NACS State of the Industry Summit. What’s notable is that the top 50 operations from 2019 were still, generally, among the top 50 performing operations in 2020 (though the order shifted somewhat). New to the top 50 were Byrne Dairy, Dash In Food Stores, Family Express, High’s Dairy Store, Parker’s and RaceWay. Dropping from the top 50 were Kent Kwik, Wesco, Johnny’s Markets, East Side Food Mart, Stripes, Fastrip Food Store and USA Gasoline.

“ The advantage of being an independent operator or a small chain is that you are able to laser focus on your customers and your local market.”

SIZE EQUALS SUCCESS? As an old military saying goes, quantity can have a quality of its own. And the scale of a fuel retailer certainly provides a range of advantages. These include more favorable fuel contracts from volume, the ability to run a fuel logistics program in-house, the ability to identify and hire top talent and the ability to implement the latest technologies—to name a few. The OPIS methodology worked to reduce the impact of sheer size on the rankings to get a more operationally focused performance metric. Looking at the top 50 companies and comparing the 10 largest to the 10 smallest, there are companies that range from Circle K with nearly 6,000 sites to Delta Sonic with 28 sites. The top five tended to be more midsize, averaging about 500 sites.

same high school attendance zone. Is it always best to be the low-cost leader? “‘If I’m not the cheapest in the market I will lose all my volume.’ When it comes to pricing fuel, this is one of the most common misconceptions in the market. Of course, price matters. But, as consumers shift to convenience shopping and filling stations become ‘retail hubs’ consumers are becoming less worried about price,” said Mark Truman, chief revenue officer, EdgePetrol. EdgePetrol provides pricing software that gives station owners real-time accurate insight to help them combat reducing volumes and aggressive competition by making better pricing decisions. Truman noted that 2020 NACS Consumer Fuels Survey found that 48% of consumers do not consider price to be the dominant factor when deciding where to get gas. By using a low-price strategy as the No. 1 lever to attract customers, an operator is only thinking about 52% of the market.

COMMUNITY PRICE DIFFERENTIAL OPIS analyzed the average price difference between each site and the competitor sites in the FuelsMarketNews.com

Roy Strasburger, StrasGlobal

2020 Fuel Leaders | 7

10 LARGEST CHAINS RANK

BRAND

STATIONS

Circle K Laval, Quebec

5,963

7-Eleven Irving, Texas

4,432

Speedway Enon, Ohio

3,607

Casey's Ankeny, Iowa

2,274

QuikTrip Tulsa, Okla.

872

Wawa Wawa, Pa.

704

Kwik Trip La Crosse, Wisc.

636

Sheetz Altoona, Pa.

625

RaceTrac Atlanta, Ga.

588

Cumberland Farms Westborough, Mass.

559

SOURCE: OPIS Brand Power Ranking Report

10 SMALLEST CHAINS RANK

BRAND

STATIONS

Delta Sonic, Buffalo, N.Y.

Buc-ee’s Lake Jackson, Texas

Road Ranger Rockford, Ill.

High’s Dairy Store Baltimore, Md.

Byrne Dairy Syracuse, N.Y.

Fastrac Syracuse, N.Y.

Dash In Food Stores LaPlata, Md.

On the Run Laval, Quebec

OnCue Express Stillwater, Okla.

Country Fair Erie, Pa.

SOURCE: OPIS Brand Power Ranking Report

8 | 2020 Fuel Leaders

“ Of course, price matters. But, as consumers shift to convenience shopping and filling stations become ‘retail hubs’ consumers are becoming less worried about price.” Mark Truman, EdgePetrol

“Also, unless you are working on $1 margins, the economics often don’t work,” he said. “To achieve 10 CPG [cents per gallon] back in volume can take anywhere between 15% and 50% increase in volume. Maybe your market is indeed that price sensitive, but have you tested it and done the math? Every station is different and, therefore, must have its own pricing strategy. Stations are also different at different times of the day, week, month and year. One strategy does not fit all stations or situations.” GETTING CUSTOMERS ON-SITE A look at the OPIS Consumer Market Share data (an overall national gasoline market share based on visits to a chain’s properties through cellphone location tracking), reveals one area where scale shines through. The top 10 in this category are very clearly leading national or regional operations. Number of sites, brand recognition, the availability of TV advertising, etc. have their advantages. Of course, the dynamic midsize and larger operations found FuelsMarketNews.com

COMMUNITY PRICE DIFFERENTIAL, LOW AND HIGH RANK

BRAND

COMMUNITY PRICE DIFFERENTIAL

Cents per Gallon Below Market

here have a reputation for being effective operators regardless of scale. Given the range of offers present with a convenience store to drive traffic, what role does fuel play in the mix? “In most cases, a site’s fuel program is what attracts a customer’s attention to your site, whether it is a high-rise pole sign, an LED price sign on the curb or the colors of the canopy as the attention grabber,” said Roy Strasburger, president of StrasGlobal. “Offering gasoline gives your customer an additional reason to visit your site and will lead to increased inside sales as the customer seeks a onestop shopping experience.” He noted that for customers who live in the area, the fuel offer can create a shopping habit if the site becomes their fueling location of choice and they stop every time they need fuel. “The customer may not come inside the store during every fueling stop, but the odds are good that they will buy something in the store on the majority of their visits,” said Strasburger. “The fuel island also offers a great opportunity to communicate your marketing messages to your customer. What better time to tell someone about the twofor-one special on dog food than when they are standing in front of the fuel dispenser for five minutes with nothing to do?” SUCCESS WITH COMMERCIAL CUSTOMERS COVID-19’s impact on fleet operations largely centered on the nature of the fleet’s business and if it supported an essential sector. A June 9, 2020, survey by the fleet management company Geotab using GPS data found that while there was a drop in commercial transportation activity, a notable decline in fuel consumption was not evident across all types of commercial vehicles. Heavy-duty trucks (HDT) recorded the lowest decline, and light-duty trucks (LDT) increased fuel fill-up activity. OPIS tracks an overall national gasoline market share based on WEX fleet card gallons sold. As with consumer visits, the scale of an operation was a significant factor similarly favoring the midsize and larger operations. In addition to such advantages as brand familiarity and marketing resources, fleets FuelsMarketNews.com

Buc-ee’s Lake Jackson, Texas

(0.127)

Delta Sonic Buffalo, N.Y.

(0.095)

RaceWay Atlanta, Ga.

(0.053)

QuickChek Whitehouse Station, N.J.

(0.047)

Maverik Salt Lake City, Utah

(0.041)

Cents per Gallon Above Market 16

ExtraMile Pleasanton, Calif.

0.157

Terrible Herbst Las Vegas, Nev.

0.105

G&M Food Mart Huntington Beach, Calif.

0.063

Twice Daily Convenience Nashville, Tenn.

0.055

Spinx Greenville, S.C.

0.049

SOURCE: OPIS Brand Power Ranking Report

CONSUMER MARKET SHARE RANK

BRAND

U.S. MARKET SHARE (TRAFFIC)

Circle K Laval, Quebec

6.521%

7-Eleven Irving, Texas

4.215%

Speedway Enon, Ohio

3.666%

QuikTrip Tulsa, Okla.

2.315%

Casey's Ankeny, Iowa

1.989%

Wawa Wawa, Pa.

1.652%

RaceTrac Atlanta, Ga.

1.342%

Sheetz Altoona, Pa.

1.232%

Kwik Trip La Cross, Wis.

1.030%

Kum & Go Des Moines, Iowa

0.622%

SOURCE: OPIS Brand Power Ranking Report

2020 Fuel Leaders | 9

FLEET CARD MARKET SHARE RANK

BRAND

U.S. MARKET SHARE (FLEET CARD)

Circle K

6.951%

Speedway

5.361%

7-Eleven

4.226%

QuikTrip

3.090%

Wawa

2.736%

Sheetz

1.901%

RaceTrac

1.897%

Casey's

1.886%

Maverik

0.877%

Kum & Go

0.803%

SOURCE: OPIS Brand Power Ranking Report

HEAD TO HEAD IN MARKETS RANK

BRAND

HEAD TO HEAD

Buc-ee's Lake Jackson, Texas

100%

Town Pump Butte, Mont.

100%

Wawa Wawa, Pa.

96%

Sheetz Altoona, Pa.

94%

Alltown Markets Waltham, Mass.

93%

Kwik Trip La Cross, Wis.

93%

RaceTrac Atlanta, Ga.

92%

Petro Stop Westlake, Ohio

91%

Thorntons Louisville, K.Y.

90%

QuikTrip Tulsa, Okla.

90%

SOURCE: OPIS Brand Power Ranking Report

10 | 2020 Fuel Leaders

“ Regarding the cost, offering some type of volume discount program, possibly with a tiered structure, could provide a good incentive for the fleet manager to direct gallons to your location.” Howard Abrams, Sokolis Group (in many cases) appreciate a more widespread availability of sites in their business area for drivers to access. What makes a retail site attractive, beyond the number of locations? Howard Abrams, president of the Sokolis Group, which helps fleet managers maximize their fuel logistics, provided some perspective on what retailers can do to enhance their commercial business. “Survey the area where you’re located to identify companies that maintain a fleet within a nearby radius,” said Abrams. “Reach out to those companies and find the person responsible for managing the fleet’s fuel purchasing. Speak to that individual to raise awareness of your fueling locations. Important points to communicate would be the convenience of your nearby location, along with the ability to quickly get in and out for fueling.” He noted that if the location includes a convenience store, keep in mind that the amenities FuelsMarketNews.com

within the store may not be a strong selling point since the fleet manager may be concerned drivers will spend too much time inside the store. Their priorities will be to minimize the time required to get fuel, along with the cost of the fuel. “Regarding the cost, offering some type of volume discount program, possibly with a tiered structure, could provide a good incentive for the fleet manager to direct gallons to your location,” Abrams said. “However, any discount offered, even if it’s just a few pennies, may have a big impact toward attracting additional gallons.” HEAD TO HEAD An operator knows the competition and knows generally how well they compete. But what is the true metric for that success? OPIS provides this in a specific, detailed format for companies that purchase the full report, but it did share the general head to head performance of the top 50 operators. This represents the percentage of times a specific chain was more efficient in gaining its head to head market share than its individual competitors (combined fleet and consumer). Here, companies that would be considered smaller in scale tend to dominate their individual markets, along with some of the more notable midsize companies. How can the fueling component help contribute to beating the direct market competitors? “Your forecourt is the first thing and the last thing that your customer sees when he visits your site,” Strasburger said. “It creates an impression of your site and your business. The cleanliness of the pump islands and the availability of customer service items will give your customer a reason to stop at your store and will let them know that you have a quality offer available inside the store, as well.” He recommends making sure the squeegee buckets are full of clean water, the squeegees are in good shape, paper towels are available, and the trash cans are less than 75% full and clean on the outside. Make sure the pumps are clean, the FuelsMarketNews.com

2020 RANK

2019 RANK

BRAND

Wawa

704

456

QuikTrip

872

494

STATIONS # COMMUNITIES

# STATES

Sheetz

625

423

QuickChek

Maverik

364

229

Get Go

266

203

Royal Farms

216

122

Kwik Trip

636

310

RaceTrac

588

365

Alltown Markets

Kum & Go

437

227

Rutter’s

Speedway

3,607

2,187

Thorntons

208

147

Buc-ee’s

ExtraMile

504

333

Cumberland

559

377

Holiday

544

275

Twice Daily Convenience

Circle K

5,963

2,724

Spinx

Kwik Star

OnCue Express

Petro Stop

7-Eleven

4,432

2,065

Terrible Herbst

110

Jacksons Food Stores

216

126

Bolla Market

209

106

Fastrac

Weigel’s

Stewart’s

311

164

Town Pump

105

My Goods Market

237

198

Casey’s

2,274

1,487

Bucky's Express

SOURCE: OPIS Brand Power Ranking Report

2020 Fuel Leaders | 11

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2020 RANK

2019 RANK

BRAND

Road Ranger

Gate

On the Run

Byrne Dairy

Dash In Food Stores

Turkey Hill

242

140

STATIONS # COMMUNITIES

# STATES

Delta Sonic

MAPCO

339

177

Country Fair

Loaf N Jug

168

Family Express

G & M Food Mart

112

High’s Dairy Store

Parker’s

RaceWay

256

225

nozzles are clean and the shutoffs work. There must be paper in the receipt printer, and the antitamper security tape on the pump should be visible and unbroken. “All of these items, when done right, convey the image of a clean and professional retail business that your customer will want to visit,” Strasburger said. “Just be sure that you are consistent with the cleanliness and quality offer inside the building as well as outside.” Keith Reid is editor-in-chief of Fuels Market News. He can be reached at kreid@fmnweb.com.

SOURCE: OPIS Brand Power Ranking Report

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IMPROVING YOUR PERFORMANCE

Fuel Additives: Building Your Brand and Inspiring Customer Loyalty BY DR. KHALED RASHWAN & ERIN F. SMITH As engine technology continues to evolve and vehicle outputs reach new heights, maintaining engine performance as designed is critical to owner success and satisfaction. While the focus in this article will be on diesel additives, multifunctional additive packages are available that fuel marketers can use to provide gasoline, diesel and renewable fuels that have been optimized to meet your customers’ performance requirements, differentiate your fuel, build your brand, grow your business, and develop a loyal customer following. Additive packages are customizable to meet the performance needs of varying fuel blends, customer segments, geographies and seasons: DETERGENCY ADDITIVES Year-round diesel detergency is of the utmost importance, as dirty fuel systems will operate less efficiently due to deposit build-up from lower quality fuels. With lower quality diesel, the fuel will fail to combust completely, leading to reduced fuel economy and power output, as well as increased emissions. Including detergent additives in the fuel blend can help control deposit formation on and in fuel injectors that cause lost efficiency and poor performance. These additives can clean and maintain fuel systems, helping to reduce costly downtime, maintenance, repairs and part replacements for your customers. Marketers that utilize robust detergent additives in their fuels can provide claims, such as: •P rovides clean up and keep-clean detergency •C leans up internal diesel injector deposits (IDID) • Helps restore lost power and fuel economy •R educes emissions COLD FLOW IMPROVERS Winter will be here soon, and different regions will struggle with combating lower temperatures and keeping engines up and running. One risk customers

face is wax settling; if a vehicle is idle for too long, wax fallout can occur and plug filters. WASA (wax anti-settling agents) in cold flow additives can disperse the wax in fuel blends, reducing the risk of this occurring. Cold flow additives are a great way to enhance the low temperature operation of fuels in a range of low temperatures. Marketers that add cold flow improvers to their fuel blends can tout many benefits, including: • Improves low temperature operability • Lowers Cold Filter Plugging Point (CFPP) • Improves fuel handling and flow characteristics • Minimizes effects of water contamination by inhibiting ice crystal formation • Reduces risk of frozen fuel lines and filters • Minimizes need for kerosene dilution • Reduces risk of wax fallout and plugged filters CETANE IMPROVERS The cetane number is a measure of the ignition delay of diesel. With cetane-improving additives, marketers can provide solutions to their customers like: • Facilitates cold weather starts • Maintains smoother engine idle • Emits less smoke and odor • Reduces engine noise STABILIZERS & ANTIOXIDANTS Over time, fuel can break down and develop gums, varnish and acids (especially in biodiesel blended fuels). These elements can plug fuel filters and harm sensitive engine components, causing poor engine performance. The right combination of antioxidant and stabilizing fuel additives can protect against fuel degradation, reducing the risk of residues and plugged filters, as well as extending the storage life of fuel for both marketers and their customers. LUBRICITY IMPROVERS Lubricity is necessary to protect fuel pumping and injection systems.

Hydrotreating diesel to remove sulfur also removes naturally occurring lubricity-containing components from diesel fuel. While there is a minimum lubricity specification (ASTM D975), engine manufacturers have long had concerns that this minimum is not low enough to meet their recommendations for optimal engine performance. Additizing fuel with lubricity improvers can bring this important property back to match the engine manufacturer specification, potentially providing a longer serviceable life for various engine components. CORROSION INHIBITORS Water contamination is an unfortunate and inherent issue in fuel distribution systems, and low sulfur fuel may not always provide protection against rusting. Where there is water and metals, there is corrosion. Choosing the right additives can provide a protective barrier to the fuel storage and transfer systems, as well as to the vehicle engine components to guard against corrosion. WHAT IS THE NEXT STEP FOR MARKETERS? MCC can tailor fuel additive packages to your specifications to provide the necessary solutions to your diesel, renewable and gasoline fuel blends that will resonate most with your customer base and build your brand. MCC is ready to be your fuel additive partner. Contact us today at fueladditives@ mcchemical.com to discuss customized fuel additives and to provide your customer with the best solutions. Dr. Khaled Rashwan is the Technical Manager at MidContinental Chemical Company, Inc. (MCC) has extensive experience in the specialty chemical industry. Dr. Rashwan can be reached at khaledr@mcchemical.com. Erin Smith is the Marketing Specialist at MidContinental Chemical Company, Inc. (MCC) and has 10+ years of experience in industrial and chemical marketing. Ms. Smith can be reached at erins@mcchemical.com.

THE TOP

FUEL LEADERS From coast to coast, these leading brands excel in their markets. 16 | 2020 Fuel Leaders

1 Wawa Inc. began in 1803 as an iron factory in New Jersey. The company became a dairy in 1902 and opened its first store in 1964. The first fueling location opened in 1996. Pennsylvania-based Wawa has worked to maintain its pledge of Fulfilling Lives, Every Day, since opening its first store. Today, Wawa is an all-day, everyday stop for fresh, made-to-order food, beverages, coffee, fuel services and surcharge-free ATMs. The operation spans Pennsylvania, New Jersey, Delaware, Maryland, Virginia, Florida and Washington, D.C., with more than 930 convenience retail stores of which over 700 offer gasoline and 690 diesel (including every Delaware, Maryland and Florida store). Its branded gasoline and diesel is sourced from major domestic refineries. Wawa adds detergent cleansing additives and provides customers with a written Fuel Quality Guarantee—something the company notes is not offered by any other retailer in Wawa’s market. Wawa’s fuel teams receive training in safety and are certified in safety courses prior to working in the fuel court. The fuel court training courses include customer service, fuel court safety and register and cash-handling certification. In addition, the operation’s clean, large, well-lit parking lots make for a comfortable experience 24/7 whether fueling, charging an electric vehicle, taking advantage of self-serve propane or using free air, while free ATMs and clean bathrooms make going inside advantageous. WHAT IS BEHIND THE COMPANY’S SUCCESS? “We strive to deliver exceptional value with every fuel transaction, including a competitive fuel price and great real estate, which we know are the two leading factors in a customer purchase decision,” said Brian Schaller, chief fuel and real-estate officer, Wawa. “Fuel itself is a commoditized product, but we try to focus on everything around the transaction to distinguish the customer visit. Our ability to satisfy the frequent and immediate needs of our customers with the friendliest store associates provides us with a meaningful platform to sustain the FuelsMarketNews.com

relationship. We operate in New Jersey, one of only two full-service gasoline states in the U.S., and our fuel attendants do an exceptional job of fueling our customers quickly while delivering quality interactions—thanking them, delivering eye contact during the interaction and assisting in any other way beyond the fuel service needed.” Schaller noted that trust and reliability are a core part of the brand, and Wawa will be in stock with fuel no matter what, including hurricanes, snowstorms and other disruptions. On the technology front, Wawa provides world-class payment security at the pump with encrypted transactions, along with a customer engagement experience that includes a 12-inch color video screen that delivers messaging to provide instruction and greet and thank customers

for visiting Wawa. The pump video screens also promote the company’s food and beverage offers and share how Wawa is making a difference in its communities through The Wawa Foundation grants and support.

BRAND

STATIONS

COMMUNITIES

STATES

COMMUNITY PRICE DIFFERENTIAL

U.S. MARKET SHARE (TRAFFIC)

U.S. MARKET SHARE (FLEET CARD)

HEAD TO HEAD*

Wawa

704

456

Del., Fla., Md., N.J., Pa., Va.

(-0.019)

1.652%

2.736%

96%

SOURCE: OPIS Brand Power Ranking Report

*The percentage of times the chain was more efficient in gaining its head-to-head market share.

QuikTrip Corp. is a privately held corporation based in Tulsa, Okla. The company is well known as a premiere marketer of motor fuel and convenience store merchandise. QuikTrip currently owns and operates 888 retail outlets in 11 states. Forbes magazine lists QuikTrip as the 29th largest privately held corporation, and Fortune magazine listed QuikTrip as one of the best companies to work for 15 consecutive years. Inside the store, the company offers a wide range of made-fresh-to-order food, premium specialty drinks and frozen treats selections. On the fuels side, QuikTrip does not operate pipelines or terminals and is strictly a retailer of quality motor fuels. The company purchases fuels from various U.S. refineries. “We are excited to be in the top five of the top 50 fuel retailers for two consecutive years,” a QuikTrip spokesperson said. FuelsMarketNews.com

WHAT MAKES QUIKTRIP GASOLINE DIFFERENT? “First and foremost, our guarantee,” the company said. “Other than our guarantee, what makes any motor fuel different? The additives package a retailer chooses to use,” according to QuikTrip. All gasoline retailers must meet the government-mandated minimum level of additives in their motor fuel, and some retailers only add the minimum amount required. At minimum levels, deposits may form throughout vital engine parts in the fuel injectors, the intake manifold, the intake ports and on the intake valves. These deposits can cause problems such as lower gas mileage, difficulty in starting, loss of power and increased exhaust 2020 Fuel Leaders | 17

pollutants. They may also cause the engine to idle roughly, hesitate stall and surge. “At QuikTrip, our blend of detergent additives exceeds government minimums and will not only keep these deposits from forming but also will actually reduce deposits that may have already formed,” the company said. “Some retailers offer higher levels of additives, but only in their premium grades, forcing drivers to pay a premium

price for the added benefit. At QuikTrip, we put the same high level of detergent additives in every grade of gasoline we sell.” QuikTrip gasoline has been recognized and approved as a TOP TIER™ detergent gasoline by seven of the world’s top automakers, including Audi, BMW, General Motors, Honda, MercedesBenz, Toyota and Volkswagen, the compay said. QuikTrip recently began offering winterized diesel in its coldest Midwest markets. It also offers the Fleetmaster Plus universal card program accepted nationally at over 90% of all retail fuel locations.

BRAND

STATIONS

COMMUNITIES

STATES

COMMUNITY PRICE DIFFERENTIAL

U.S. MARKET SHARE (TRAFFIC)

U.S. MARKET SHARE (FLEET CARD)

HEAD TO HEAD*

QuickTrip

872

494

Ariz., Ga., Iowa, Ill., Kan., Mo., N.C., Neb., Okla., S.C., Texas

(-0.028)

2.315%

3.090%

90%

SOURCE: OPIS Brand Power Ranking Report

*The percentage of times the chain was more efficient in gaining its head-to-head market share.

3 Sheetz Inc. was established in 1952 in Altoona, Pa., and is one of America’s fastest-growing family-owned and -operated convenience store chains with more than 20,000 employees. The company operates over 600 store locations throughout Pennsylvania, West Virginia, Virginia, Maryland, Ohio and North Carolina. Sheetz provides an award-winning menu of M•T•O® sandwiches and salads, which are ordered through unique touch-screen order point terminals. All Sheetz convenience stores are open 24 hours a day, 365 days a year. Recognized by Fortune as one of the 100 Best Companies to Work For, Sheetz is committed to offering employees sustainable careers built on an inspiring culture and community engagement. On the fuels front, Sheetz gasoline is produced by major refiners. The company then adds 18 | 2020 Fuel Leaders

detergent cleaning additives formulated to meet or exceed the most stringent EPA requirements. The sites’ underground storage tanks are equipped with advanced fuel-level monitors and overspill safeguards. Other sensitive electronic probes monitor tanks and automatically halt the flow of gasoline if water or sediment is detected. Sheetz monitors the quality of the gasoline being delivered 24/7. HOW DOES SHEETZ MAXIMIZE ITS FUELING? “We are so proud of our fuel offering because, like everything we do, it is focused on providing options for our customers,” said Adam Sheetz, vice president of operations. “Sheetz offers the widest variety of ethanol blends, along with auto diesel. We are also increasingly offering high-flow diesel, and we are proud to be one of the largest providers of electric charging. The great folks who work in our fuel department, along with our award-winning dedicated carrier CLI Transport, allow us to be nimble and safe.” FuelsMarketNews.com

The company is committed to offering a broad range of conventional and alternative fuels to meet specific customer needs. “Sheetz is dedicated to providing fuel of the highest quality to customers combined with the most diverse fuel offering in the convenience store industry,” said Trevor Walter, Sheetz’s vice president of petroleum supply management. “We continue to be a market leader in renewable fuel blends with 313 locations offering unleaded 88 and 315 offering Flex Fuel (E85). Recently, we’ve begun catering to our recreational and outdoor power sports customer base by offering Ethanol Free Plus 90 fuel at 29 locations. Furthermore, we continue to focus on our EV customers by offering charging locations at over 10% of our stores through our partnerships with Tesla, EVgo and Electrify America. In keeping with our tradition of Total Customer Focus, the Sheetz fuel offering is entirely dedicated to providing our customers what they want, when they want it.” BRAND

STATIONS

COMMUNITIES

STATES

COMMUNITY PRICE DIFFERENTIAL

U.S. MARKET SHARE (TRAFFIC)

U.S. MARKET SHARE (FLEET CARD)

HEAD TO HEAD*

Sheetz

625

423

Iowa, Md., N.C., Ohio, Pa., Va., W.Va.

0.002

1.232%

1.901%

94%

SOURCE: OPIS Brand Power Ranking Report

*The percentage of times the chain was more efficient in gaining its head-to-head market share.

4 QuickChek Corp., a division of Murphy USA, has become the market leader in the metropolitan areas it serves through innovation and its focus on Fresh-to-Go foodservice available in-store, online and via mobile ordering through the QuickChek Rewards app and delivery. QuickChek stores provide local one-stop shopping, offering a wide variety of grocery and market items in-store with multi-pump fueling positions offering high-quality fuel at value prices outside. Well-lighted fuel stations and parking lots with wide, easy-to-use entrances and exits add to shopper convenience. Based in Whitehouse Station, N.J., the company has 157 fresh convenience market stores with QuickChek branded fuel offered at 89 locations throughout New Jersey, New York’s Hudson FuelsMarketNews.com

Valley and Long Island. Diesel is offered at 87 of the 89 locations, and four offer Tesla Superchargers and one offers EVgo charging. QuickChek was also named one of the Top 10 Fuel Brands in America by USA TODAY readers in 2020. The fueling area is designed for an easy, natural flow for customers going to the pump, while at the same time providing in-store customers with easy access to shop inside or get their orders at QuickChek’s curbside 2020 Fuel Leaders | 19

pickup. QuickChek’s fuel areas are modern and feature large canopies and provide a well-lighted, safe shopping environment any time of day or night. The QuickChek Fleet Program offers hasslefree savings on fuel purchases, while helping track, manage and optimize a company’s fleet fuel expenses.

WHAT IS THE COMPANY’S KEY TO SUCCESS? “Our fueling program is effective because we maintain the same philosophy with fuel as we do inside the store: Provide busy people on the go with the products and convenience they seek,” said Don Leech, QuickChek vice president of marketing and operations.

BRAND

STATIONS

COMMUNITIES

STATES

COMMUNITY PRICE DIFFERENTIAL

U.S. MARKET SHARE (TRAFFIC)

U.S. MARKET SHARE (FLEET CARD)

HEAD TO HEAD*

QuickChek

N.J., N.Y.

(-0.047)

0.135%

0.259%

80%

SOURCE: OPIS Brand Power Ranking Report

*The percentage of times the chain was more efficient in gaining its head-to-head market share.

5 Maverik—Adventure’s First Stop—fuels adventures in more than 360 locations and growing across 11 Western states, making it the largest independent fuel marketer in the Intermountain West, according to the Salt Lake City, Utah-based company. Maverik operates in Arizona, Colorado, Idaho, New Mexico, Nebraska, Nevada, Oregon, South Dakota, Utah, Washington and Wyoming. Maverik grew from humble beginnings, founded by Reuel Call in Afton, Wyo., in 1928. It is known for its premium BonFire

food, made fresh in every Maverik, every day, and value on fuel, drinks and snacks. Maverik sells exclusive products such as fresh-made, gourmet burritos, sandwiches, pizzas, toasted subs, cookies and coffee blends from around the world. Maverik’s loyalty members can save on every gallon of gasoline, earn free prizes and get great deals with their Adventure Club or Nitro cards. The Maverik Fleet Card Program provides volume-based discounts—so the more fuel purchased, the greater the savings. Purchases can be tracked online to avoid wasting time hunting down paper receipts for reimbursing drivers. Two cards are offered. The Maverik Private Label Fleet Card is used at Maverik locations only, providing guaranteed savings for customers who operate in the Maverik network. The Maverik Universal Fleet Card is accepted at any Maverik location, plus over 95% of fueling stations.

BRAND

STATIONS

COMMUNITIES

STATES

COMMUNITY PRICE DIFFERENTIAL

U.S. MARKET SHARE (TRAFFIC)

U.S. MARKET SHARE (FLEET CARD)

HEAD TO HEAD*

Maverik

364

229

Ariz., Col., Idaho, Neb., N.M., Nev., Ore., S.D., Utah, Wash., Wyo.

(-0.041)

0.433%

0.877%

89%

SOURCE: OPIS Brand Power Ranking Report

20 | 2020 Fuel Leaders

*The percentage of times the chain was more efficient in gaining its head-to-head market share.

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