JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS...  The First and Only Independent Newsletter to Focus on Lubricant Distributors.

Silogram Lubricants Files Suit Against Everclear

Silogram Lubricants, a New York Corporation with a manufacturing and distribution facility in Bayonne, NJ filed a $25 million breach of contract suit against Everclear of Ohio, Ltd. on March 1, 2012.      

Silogram alleges the 10W-30 engine oil it purchased from Everclear for resale to Silogram's customers from late 2010 to early 2012 was defective and improper for use in automobiles. As such, it damaged passenger cars and trucks where it was intended for use and caused damage to Silogram's business and reputation.  

The Silogram suit claims they were purchasing the Everclear engine oil at a rate of approximately 1 million gallons a year.

Whereas Chevron set the bar high with its Signature Class marketer requirements, it moved the bar even higher this year when it announced its new 1st Source Elite Marketers.

In short, Chevron says 1st Source Elite Marketers are those with a passion to win and commit to the Chevron brand. To wear the badge of a 1st Source Elite Marketer and enjoy the benefits, Chevron marketers must meet certain volume requirements. One such requirement is the purchase of 75% of their lubricant and coolants from Chevron (inclusive of branded and private label); and meet a minimum volume commitment of 750 thousand gallons a year. Then there is growth. 1st Source Elite Marketers are required to post a minimum of 1% growth in premium products from 2011 to 2012 and 5% growth in coolant volume over the same period.

In addition to volume commitments, 1st Source Elite Marketers are required to satisfactorily complete PI reviews and education programs in value-added marketing, have safety programs in place, and a documented business plan. Chevron also requires they have capable management teams in place that participate in quarterly business reviews that include sharing sales pipelines and plans, and assure the plans align with Chevron's focus.

Chevron makes no bones about it when it says, "Only a small percentage of its lubricant marketers will meet the most stringent requirements in the market to qualify as a Chevron 1st Source Elite marketer." At the same time, they say 1st Source Marketers are much more than lubricant distributors. Instead, they are Chevron partners willing and able to contribute to its customer's long-term profitability and growth. And in return, Chevron says, both Chevron and its marketers will also enjoy long term growth.