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MENAFN - - 10/6/2012 5:15:26 AM

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Kangaroo gets new supplier for some stores

Oct 06, 2012 (Menafn - The Florida Times-Union - McClatchy-Tribune Information Services via COMTEX) --The gas flowing from pumps into vehicles at First Coast Kangaroo Express convenience stores is changing, and the new supplier says it could save motorists a few cents per gallon.

What for years had been either Chevron or Texaco gas pumps at Kangaroos stations have been switched to Valero gasoline. Kangaroo's parent company Pantry, Inc. of Cary, N.C., signed a new contract with Valero in June, bumping Chevron and Texaco out of the deal for stores in several Southeastern states, most notably in Florida.

A Kangaroo email statement Friday said the gas pump label and sign transition is now in effect at Kangaroos through the end of October. There are 128 Kangaroo stores in Florida undergoing the change; 37 of those are in Jacksonville.

There are about another 40 Kangaroo stores combined in other states that are undergoing the same switch. There are about 1,580 Kangaroo stores in 13 states.

Valero, based in San Antonio, got the Kangaroo contract by offering marketing enhancements, said Valero spokesman Bill Day.

"We're a rapidly growing brand ... and we offer dealers competitive rates and competitive advertising packages and promotional materials," Day said. "I would expect that it [gas] would be at least a few cents per gallon lower than one of your larger competitors."

Jim Mills is the retail business consultant for Chevron based in Tampa and said the company is looking for a new distributor through a convenience store chain, although many stations remain.

"They [Pantry] are an independent business," Mills said Friday. He added the loss of the Kangaroo contract "doesn't mean that we're going anywhere."

Day said most customers won't notice much difference other than the sign changes. The stores will allow Chevron and Texaco customers holding gas credit cards to switch to Valero, he said.

"Valero's been expanding into that are of the country for years, this [contract] just accelerates that," Day said.

He wouldn't disclose the value and length of the contract.

Drew Dixon: (904) 359-4098

___ (c)2012 The Florida Times-Union (Jacksonville, Fla.) Visit The Florida
Times-Union (Jacksonville, Fla.) at www.jacksonville.com Distributed by MCT
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