Jobbers World News
May 6, 2008

  • ADM Backs BioBlend
  • Chevron Increases Buyback and Repackaging Fees
  • Haycock Petroleum Announced as Newest Sinclair Arctic Fire Lubricant Distributor

  • ADM Backs BioBlend

    BioBlend Renewable Resources, a leading manufacturer and marketer of bio-based lubricants, today announces second-round venture capital funding from Archer Daniels Midland Company (ADM). BioBlend will use this funding to further expand its manufacturing and marketing of green lubricants to customers and local distributors. In exchange for its support, ADM will gain a minority share position in BioBlend.

    So why is this important to lubricant distributors?

    Because according to BioBlend's president Sam Burkett, BioBlend offers lubricant distributors "something new and profitable to add to their product portfolio, and whereas most lubricant manufacturers are looking to reduce the number of distributors it does business with, BioBlend plans to add 50 new lubricant distributors in the next two years to create a nationwide renewable lubricant distribution and marketing platform."

    Whereas many distributors in the industry are struggling to push through price increases and grow their business with me-too products, Burkett says,"BioBlend represents a high-value product line in the rapidly growing "green" segment of the market." Compared to traditional lubricants, bio-based lubricants reduce water pollution and improve the sustainability of the supply chain, while protecting valuable equipment.

    Based on market research by Petroleum Trends International, Inc. these so called "green" lubricants are one of the bright spot in the lubricants business. Demand for green lubricants is growing at particularly fast pace with city and state governments, companies engaged in drilling for oil, natural gas, and water; rigging, elevator and escalator, towing and other companies employing the use of wire ropes, chains, and open gears. In addition, growth in demand is seen at airports, agriculture, and other niche applications where the potential for lubricant exposure to the environment is comparatively high, as are the costs for remediation when contamination occurs. And when you consider that BioBlend's chain and cable lubricants (based on Conola oil), as well as others in its line are H-1 approved, it's easy to see the competitive advantage they can offer over conventional lubricants in environmentally sensitive applications. Burkett adds, "Virtually any user of petroleum-based lubricants can benefit from their adoption."

    According to Burkett, "BioBlend is expanding its distribution center and quality control laboratory in Joliet, Illinois, to provide more support for industries that need custom biodegradable lubricant blends, such as original equipment manufacturers, environmentally conscious retailers and government agencies seeking to comply with the USDA procurement guidelines for bio-based products." In addition, Burkett adds, "BioBlend is actively working to advance its business through strategic partnerships with lubricant technology intellectual property holders in order to better use its unique distribution and marketing platform."

    Chevron Increases Buyback and Repackaging Fees

    Chevron announced an increase of 6.5 cents a gallon on its buyback fees and that it will add an additional 2.5 cents a gallon for repackaging. This increase went into effect on May 1.

    Chevron's increase followed Shell's recent announced increase in buyback fees of $0.04 a gallon this month and that it will bump it up again by $0.02 a gallon in September.

    Although most of the distributors JobbersWorld speaks with say these increases are appreciated, they are also quick to add that they hardly account for the increased cost of fuel to deliver buyback business.

    Haycock Petroleum Announced as Newest Sinclair Arctic Fire Lubricant Distributor

    Salt Lake City, Utah April 25, 2008 -- Haycock Petroleum Company (HPC) is pleased to announce that it has been named a Master Distributor of Sinclair's Arctic Fire lubricant products throughout the company's distribution territory. HPC plans to distribute Sinclair Arctic fire Lubricants in Nevada, Utah, Arizona and parts of Idaho. Currently, Sinclair Oil supplies fuel and oil product through a network of distributors and dealers in 23 states from the Great Plains to the Rocky Mountains, reaching 3,000 convenience stores.

    "Haycock's knowledge of the markets they service should contribute to broader distribution of Sinclair's quality lubricant line", said Greg Iverson, Marketing Manager for Sinclair Oil Corporation. "Along with Sinclair's other valued distributors, the addition of Haycock Petroleum as a Master Distributor completes coverage in the Western mountain States."

    Haycock Petroleum Company is a full line commercial distributor of refined petroleum products including gasoline, diesel, lubricants and propane through 17 locations in California, Idaho, Nevada, and Utah.


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