The three companies taking over supplies to MFG’s estate of more than 220 Murco-branded forecourts have all welcomed the biggest fuel supply deal of recent years.
From the end of this month BP will take on supplies to 87 sites in addition to 49 existing sites which have been re-signed on a five-year deal, Valero will be supplying its Texaco brand and fuel to 78 sites, and Jet has taken the total number of MFG sites it supplies up from 10 to 68.
BP said its deal involved in excess of 500mlpa of fuel and it would convert sites migrating to the BP brand over a three-month transition period.
Howard Nunn, BP’s UK sales manager, said: “I am delighted with the further acquisition of 87 sites to the BP network through our strategic partnership with MFG as well as re-securing their existing network for a further five-year term. This highlights the deep relationship between the two organisations and we look forward to exploring further areas to support MFG with their long term plans.”
Jim Mulheran, fuels director at MFG, said: “We are extremely pleased to have reached agreement to significantly increase the number of BP branded stations across the MFG network. I think the strength of the BP brand is well understood and we have developed an excellent working relationship with them.”
Andrew Cox, Valero’s sales and marketing director, said the company had already added 140 new sites in the past two years, and the additional 78 sites would mean Valero will supply over 850 Texaco-branded service stations in England and Wales. Fuel supply at the MFG sites will begin at the end of March and all sites are due to be Texaco-branded by mid-July
He said: “We have a very attractive offer – competitive price; industry leading supply that is secure and reliable; a good credit card offer; a recognised brand; and we are good people to do business with.”
Cox said Valero had made significant investments in its supply chain, re-opening the Manchester Terminal and re-commissioning the northern leg of the Mainline pipeline connecting Manchester to its Pembroke refinery, giving security of supply and capacity for growth. He added that he hoped to take the total number of sites supplied to 900 in the next year.
MFG’s Jim Mulheran said: “The strength of the Texaco brand, especially in Wales and the South West, together with Valero’s seven days a week delivery service were key features in our decision making process. The introduction of Texaco to the MFG network is a welcome addition as it brings additional brand flexibility enabling us to provide the right products, at the right prices, to all of our customers.”
The original ten MFG sites supplied by Jet are spread from Southampton in the south to Glasgow in the north, while the additional 58 sites are located throughout Scotland, Humberside, Yorkshire, Midlands and the South East. The bulk of these new sites will be supplied from Jet’s supply points at Immingham, Kingsbury and Thames, and all sites are due to be re-branded by the end of May 2015.
Jim Mulheran commented: “Our relationship with Jet stretches back to 2011 and since then we’ve established a very positive working partnership. We’ve been consistently impressed with how Jet operates and, based on the success of previous contracts and a competitive supply deal, the decision to choose Jet as our supplier for these additional sites was an easy one. We’re very much looking forward to working with Pete and everyone at Jet over the next five years and beyond.”
Pete George, managing director of Phillips 66 UK & Ireland Marketing, added: “We’ve made no secret of our plans to expand our network – setting a target of 400 sites by 2018 – so to win a quarter of MFG’s available sites is a real coup for everyone here at Jet. This latest win takes the total number of Jet sites to more than 350 and with further site wins in the pipeline, it’s a very exciting time for our network.
“MFG is without doubt one of the largest and fastest growing independent fuel operators in the UK and as it continues its own expansion plans, we will certainly be delighted to be part of any further growth. The way MFG operates very much complements our approach to business. We hope that this latest win demonstrates that Jet is a strong supply partner and is 100% committed to the future of the UK fuel retail market.”