Berkshire Invests in Pilot Flying J, Lubrizol Surcharge, New Valvoline Bottle, PQIA Summit Success

Berkshire Hathaway Invests in Pilot Flying J

shutterstock_443081914Berkshire Hathaway Inc. and Pilot Flying J jointly announced that Berkshire has made a significant minority investment in Pilot Travel Centers LLC, d/b/a Pilot Flying J. The Haslam family will continue to own a majority of Pilot Flying J and Jimmy Haslam will remain as chief executive officer. Pilot Flying J President Ken Parent and the Company’s management team will also remain in place. The Company will continue to be headquartered in Knoxville, TN.

Pilot Flying J is the largest operator of travel centers in North America, with more than 27,000 team members, 750 locations across the U.S. and Canada, and more than $20 billion in revenues. The investment will expand Pilot Flying J’s opportunities for growth, as the Company remains committed to delivering outstanding service for the trucking industry, professional drivers, local communities and interstate travelers across North America.

Under the terms of the agreement, Berkshire will acquire a 38.6 percent equity stake in Pilot Flying J. The Haslam family will continue to hold a majority interest with 50.1 percent ownership in the Company and FJ Management, Inc., owned by the Maggelet family, will retain 11.3 percent ownership until 2023. In 2023, Berkshire will become the majority shareholder by acquiring an additional 41.4 percent equity stake and the Haslam family will retain 20 percent ownership in the Company and remain involved with Pilot Flying J.

“Pilot Flying J is built on a longstanding tradition of excellence and an unrivaled commitment to serving North America’s drivers,” said Warren Buffett, chairman, president and CEO of Berkshire Hathaway. “Jimmy Haslam and his team have created an industry leader and a key enabler of the nation’s economy. The Company has a smart growth strategy in place and we look forward to a partnership that supports the trucking industry for years to come.”

“Given the impeccable reputation of Warren Buffett’s Berkshire Hathaway, and our shared vision and values, we decided this was an ideal opportunity,” said Jimmy Haslam, CEO of Pilot Flying J. “As a family business that has evolved and prospered over the last six decades, we knew that any potential partner would need to share our commitment and have a proven track record as a long-term investor. We have that in Berkshire Hathaway – they believe in our strategy, support our team and are excited to see Pilot Flying J grow. We are honored and humbled to partner with them.”

James Haslam II, founder and chairman, Pilot Travel Centers LLC said, “Berkshire Hathaway’s investment in Pilot Flying J is a testament to our exceptional team members and their dedication that has made Pilot Flying J the great company it is today. Berkshire Hathaway’s commitment to keep Pilot Flying J in Knoxville was most important to us. The Knoxville community is an integral part of our company and our family. We are committed to continuing to make a difference in Tennessee, supporting and giving back to our communities here at home.”

The investment by Berkshire Hathaway reflects the success of a series of transformational milestones that have allowed the Company to evolve and strengthen its capabilities and market position over the last several decades. These milestones include the merger of Pilot with Flying J to create today’s company, as well as transactions with Marathon Ashland Petroleum, Williams, Speedway, Mr. Fuel and Speedway-Wilco that have grown the Company’s network.

BDT Company, LLC advised the Company and, as part of the transaction, BDT Capital Partners, LLC exited its minority equity investment in Pilot Flying J.

About Pilot Flying J
Pilot Flying J, the largest operator of travel centers in North America, is committed to connecting people and places with comfort, care and a smile at every stop. Headquartered in Knoxville, Tennessee, Pilot Flying J has more than 750 retail locations in 44 states, more than 100 roadside assistance trucks and growing as part of its Truck Care Program, 44 Goodyear Commercial Tire and Service Centers, and 35 Boss Shops. The Pilot Flying J network provides drivers with access to more than 70,000 parking spaces for trucks, 4,900 showers and more than 5,000 diesel lanes offering Diesel Exhaust Fluid (DEF) at the pump. Pilot Flying J is currently ranked No. 15 on Forbes’ list of America’s Largest Private Companies. Visit www.pilotflyingj.com for more information. Follow @pilotflyingj on Twitter and @pilottravelcenters on Facebook.

About Berkshire Hathaway
Berkshire Hathaway and its subsidiaries engage in diverse business activities including property and casualty insurance and reinsurance, utilities and energy, freight rail transportation, finance, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Source: Pilot Flying J

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Lubrizol Announced a Temporary Surcharge

Lubrizol advised its customers on September 27, 2017 that starting October 6th through December 31, 2017, there will be a surcharge of $10/100Kg, or $0.36/Gallon, or $0.05/lb on all Lubrizol additives excluding liquid and solid Viscosity Improvers shipped from the United States, Brazil, Canada, Korea, Mexico, and Singapore.

According to what blenders have been told, the temporary surcharge is a result of the events surrounding Hurricane Harvey and the impact on the infrastructure of the petrochemical industry. Importantly, these include interruption in the supply of chemical intermediates used in the manufacturing of additives.

Valvoline Unveils Cutting-Edge Innovation with Launch of Easy Pour Packaging

PastedGraphic-4Valvoline Inc. announced the retail launch of its newest innovation, the Easy Pour Bottle.

Valvoline worked alongside consumers to develop the game-changing design. The brand’s patent-pending Easy Pour Bottle will make changing oil easier while offering a simplified shopping solution for the automotive Do-It-Yourself (DIY) audience. “Valvoline’s goal for 151 years has been to use our expertise for the benefit of our customers. Each part of Valvoline’s Easy Pour Bottle has been engineered with our DIY consumers in mind – reimagined, redesigned, tested and proven to make changing oil easier, faster and cleaner,” said Heidi Matheys, Valvoline chief marketing officer. “Our technical team integrated an abundance of consumer field research and feedback, which ultimately resulted in this one unique design.” Highlights of Valvoline’s new Easy Pour Bottle include:

  • Easy Pull Tab™ – Makes opening the bottle clean and simple.
  • Precision Pour Spout™ – Provides accurate pour and clean cut off for a mess-free experience.
  • Anti-Glug Tube™ – Provides a glug-free pour for a faster, cleaner and easier oil change.
  • Resealable Overcap with No-Slip Grip™ – Helps prevent spillage and provides safe storage.
  • Centralized Handle – Makes for a more confident pick up, transport and pour.

EASY POUR PRESS RELEASE IMAGEThe brand is so confident in their newest innovation that they have issued a Satisfaction Guarantee at retailers nationwide, offering a 100-percent money-back promise to encourage DIYers to experience the bottle – and its advantages – for themselves. Valvoline has partnered with seven-time NASCAR Champion Jimmie Johnson to promote a series of entertaining videos showcasing the ease of use and cleanliness of the new packaging. Videos are now available for viewing at EasyPour.com. Additional motorsports athletes will participate in the series later this year.

“Our Easy Pour Bottle is one of the biggest packaging innovations in the history of Valvoline and was developed with integral feedback from DIYers and auto experts alike,” said Michelle Allen, director of marketing for Valvoline. “As we look to the future, we will continue to innovate in every area – from design to products and services – to meet the needs of our customers.”

About Valvoline™
Valvoline Inc. is a leading worldwide producer and distributor of premium branded automotive, commercial and industrial lubricants, and automotive chemicals. Valvoline ranks as the #2 quick-lube chain by number of stores and #3 passenger car motor oil brand in the DIY market by volume in the United States. The brand operates and franchises more than 1,070 Valvoline Instant Oil ChangeSM centers in the United States. It also markets Valvoline lubricants and automotive chemicals; MaxLife™ lubricants created for higher-mileage engines, SynPower™ synthetic motor oil; and Zerex™ antifreeze. Visit valvoline.com to learn more.

Lubrizol Opens New Drumming Facility and Warehouse at Painesville Township Plant

LubrizolThe Lubrizol Corporation announced the opening of a state-of-the art drumming facility and warehouse at its Painesville Township manufacturing facility, both of which are part of the company’s previously announced phased investment at the site. The total $70 million investment better positions the company to meet the changing demands of customers and ensures the integrity and quality of its products while reinforcing personal and environmental safety.

Construction on the 180,000 square feet combined buildings began in April 2015. With a focus on enhancing safety and business processes, the new buildings will be instrumental in reducing risk and achieving the company’s business objectives of improving effectiveness, efficiency and consistency.

“Historically, the Painesville Township site has been of great importance to our business, operating for more than 60 of the company’s nearly 90 years,” said Tom Curtis, incoming president of Lubrizol Additives. “This latest investment reinforces our commitment to the community by further ensuring the site as a key source in Lubrizol Additives’ global supply chain.”

With more than half of all Lubrizol Additives products worldwide containing at least one component manufactured at the Painesville Township site, adding new manufacturing capacity and updated automated packaging capabilities was a necessity. Furthermore, these efforts are important to ensure product integrity and to improve the overall safety and efficiency of handling product drums and totes.

LubrizolImgPlant

From left to right: Joshua Pennock (Painesville Township Trustee), Mike Manary (Painesville Township Administrator), John Hamercheck (Lake County Commissioner), Jerry Cirino (Lake County Commissioner), Dan Troy (Lake County Commissioner), Eric Schnur (Lubrizol), Craig Hupp (Lubrizol), Mark Rantala (Lake County Port Authority), Tom Curtis (Lubrizol), Matt Joyce (Lubrizol) and Mike Vaughn (Lubrizol)

“With our new drum filling facility, we will be able to improve safety by minimizing the manual packaging of drums, reducing packaging time for a single batch by more than 50% and minimizing the number of times a drum is handled by more than 70%,” commented Craig Hupp, Lubrizol Painesville Township plant manager. “And, with 100% indoor storage provided by our new warehouse, we will improve the quality and appearance of packaged products delivered to our customers. All of these improvements will be a tremendous value to our overall organization.”

To commemorate the opening, earlier today Lake County Commissioners presented Lubrizol with a certificate of recognition followed by a formal ribbon cutting ceremony at the facility. In attendance were several of the Lake County Commissioners and Painesville Township Trustees, as well as representatives from Lake County Port Authority. Representatives from Lubrizol included Eric Schnur, chairman, president and chief executive officer; Tom Curtis, incoming president of Lubrizol Additives; Mark Sutherland, Lubrizol corporate vice president of global communications and public affairs; Mike Vaughn, Lubrizol corporate vice president, operations; Matt Joyce, vice president of Lubrizol Additives sales and marketing; and Craig Hupp, Lubrizol Painesville Township plant manager.

About The Lubrizol Corporation
The Lubrizol Corporation, a Berkshire Hathaway company, is a market-driven global company that combines complex, specialty chemicals to optimize the quality, performance and value of customers’ products while reducing their environmental impact. It is a leader at combining market insights with chemistry and application capabilities to deliver valuable solutions to customers in the global transportation, industrial and consumer markets. Lubrizol improves lives by acting as an essential partner in our customers’ success, delivering efficiency, reliability or wellness to their end users. Technologies include lubricant additives for engine oils, driveline and other transportation-related fluids, industrial lubricants, as well as additives for gasoline and diesel fuel. In addition, Lubrizol makes ingredients and additives for home care, personal care and skin care products and specialty materials encompassing polymer and coatings technologies, along with polymer-based pharmaceutical and medical device solutions.

With headquarters in Wickliffe, Ohio, Lubrizol owns and operates manufacturing facilities in 17 countries, as well as sales and technical offices around the world. Founded in 1928, Lubrizol has approximately 8,300 employees worldwide. Revenues for 2016 were $6.5 billion. For more information, visit Lubrizol.com.

Source: Lubrizol

The First PQIA Regional Lubricant Quality Summit was a Success!

With nearly 100 in attendance, the first regional PQIA Lubricant Quality Summit on September 14th, in Wickliffe, Ohio, was deemed a success by attendees, speakers, supporters, and sponsors.

Attendees2The theme of the PQIA Summit was “Taking it to the Streets” and by all indications, it hit its mark by raising awareness about the quality and integrity of lubricants in the market and shining a light on both good and bad motor oils, transmission fluids and other lubricants.

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From left to right: Douglas Rathbun, Robert DeRubeis, Ronald Hayes, and John Stegierwald

Adding to that, the summit included informative presentation from weights and measures from the states of Missouri, Illinois, and Michigan about their programs to protect consumers from off-spec/mislabeled motor oils, automatic transmission fluids, and antifreeze/coolant. Further, Ron Hayes, Director, Missouri Department of Agriculture, Division of Weights, Measures and Consumer Protection, spoke to what the state of Missouri is doing to address concerns about the proliferation and dangers of obsolete tractor hydraulic fluid (THF) in the market. In addition, the Summit included informative presentations from industry thought leaders about the new CK-4 and FA-4 diesel engine oil specifications, developments in PCMO to address pre-ignition in T/GDI engines, and the growing complexity of ATFs.

Click HERE for more.

Report on Retail Lubricant Prices

JobbersWorld Brings Back its Retail Price Tracker

jwrptFor those who have been with JobbersWorld since its inception in 2001, you may remember we provided a retail price tracker “Stats and Facts” in each of our monthly issues. Whereas JobbersWorld continued to track retail prices over the years, the price tracker was not carried over when we switched from a print to an electronic version of JobbersWorld.  Well its back!

Moving forward, JobbersWorld will report on retail prices at the leading big box store and prices at five of the leading auto parts stores. The tracker includes prices by brand and category (synthetic, synthetic blend, high mileage, and conventional).

CLICK FOR MARCH 2017 PRICES

42017pricechrt

Summary: Round 2 Price Increases

Although Amalie was the first to announce a lubricant price increase in round 2 of 2017, CAM2, Allegheny Petroleum, Kleen Performance Products were the first to move with each having price increases taking effect on April 17th. Valvoline is the last to move with an effective date of June 1 for its price increase.

The lubricant price increases announced by majors and independent lubricant manufacturers in Round 2 of 2017 ranged from 3 to 12%. The average increase is 4.3% for the majors, and 6.5% for the independents, and the combined average is 5.8%.

With a range of 19 to 51 days, there is an average of 31 days from the time a company announced a price increase to the effective date of the increase. The longest span from the announced to effective date is seen with the majors at an average of 40 days. The average time span for the independents is 25 days.

IncreaseChart4182017

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Table 2

PRICE INCREASES REPORTED ON BY JOBBERSWORLD
IN ROUND 2 OF 2017

Lubricant Manufacturers Round 2

Company Announced
Date
Effective
Date
Increase
Amalie 3/17/2017 4/21/2017 24 cpg lubes, 3 cpp grease
Calumet 3/20/2017 4/20/2017 4 to 6%
Castrol (excluding industrial) 3/22/2017 5/1/2017 up to 3%
CAM2 3/23/2017 4/17/2017 20 to 35 cpg
Warren Distribution 3/24/2017 4/24/2017 6 to 9%
Smitty’s Supply 3/24/2017 4/24/2017 4 to 6%
Chemlube 3/27/2017 4/20/2017 4 to 7%
Pinnacle Oil 3/28/2017 4/18/2017 5 to 9%
Reliance Fluid Technologies (RFT) 3/28/2017 4/28/2017 6 to 9%
Old World Industries (PEAK) 3/28/2017 4/21/2017 up to 8%
Allegheny Petroleum 3/28/2017 4/17/2017 20 to 35 cpg
Warren Oil Company 3/28/2017 4/24/2017 4 to 9%
Kleen Performance Products 3/29/2017 4/17/2017 5 to 12%
ExxonMobil 3/31/2017 5/10/2017 up to 4%
Royal Mfg 4/1/2017 5/1/2017 4 to 8%
Chevron 4/3/2017 5/15/2017 4 to 6%
Advanced Lubrication Specialties (ALS) 4/3/2017 4/24/2017 5 to 9%
Nu-Tier Brands 4/4/2017 4/24/2017 4 to 7%
Phillips 66 4/5/2017 5/10/2017 4 to 6%
Petro-Canada 4/5/2017 5/5/2017 up to 6% (excluding white oils and process oil)
SOPUS/Shell 4/10/2017 5/15/2017 up to 4%
CITGO 4/11/2017 5/15/2017 4 to 6%
Valvoline 4/11/2017 6/1/2017 up to 4%

 Increase3282017Big2 

2017 Price Increase Timeline – Lubricant Manufacturers
Round 2
Increase4132017

Add CITGO and Valvoline to Round 2

Effective May 15, 2017, CITGO will implement a general price increase of up to 4% to 6% on its branded and private label lubricants. CITGO  says the increase is driven primarily by escalations in base oil and additive costs occurring over the past several months.

Valvoline announced an increase of up to 4% on its branded lubricant products. This increase takes effect June 1, 2017. Valvoline attributes this adjustment to increases in the cost of raw materials and higher manufacturing and distribution costs.

The average time from the date the lubricant manufacturers JobbersWorld reported on in Round 2 – 2017 to the effective date of the increases is 20 days. Interestingly, there is a significant difference in the number of days from announcement to effective dates between the majors and other blenders, as illustrated below and shown in Table 1.

CLICK FOR LARGER IMAGE

pincrease2r2017

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Table 2

PRICE INCREASES REPORTED ON BY JOBBERSWORLD
IN ROUND 2 OF 2017

Lubricant Manufacturers Round 2

Company Announced
Date
Effective
Date
Increase
Amalie 3/17/2017 4/21/2017 24 cpg lubes, 3 cpp grease
Calumet 3/20/2017 4/20/2017 4 to 6%
Castrol (excluding industrial) 3/22/2017 5/1/2017 up to 3%
CAM2 3/23/2017 4/17/2017 20 to 35 cpg
Warren Distribution 3/24/2017 4/24/2017 6 to 9%
Smitty’s Supply 3/24/2017 4/24/2017 4 to 6%
Chemlube 3/27/2017 4/20/2017 4 to 7%
Pinnacle Oil 3/28/2017 4/18/2017 5 to 9%
Reliance Fluid Technologies (RFT) 3/28/2017 4/28/2017 6 to 9%
Old World Industries (PEAK) 3/28/2017 4/21/2017 up to 8%
Allegheny Petroleum 3/28/2017 4/17/2017 20 to 35 cpg
Warren Oil Company 3/28/2017 4/24/2017 4 to 9%
Kleen Performance Products 3/29/2017 4/17/2017 5 to 12%
ExxonMobil 3/31/2017 5/10/2017 up to 4%
Chevron 4/3/2017 5/15/2017 4 to 6%
Advanced Lubrication Specialties (ALS) 4/3/2017 4/24/2017 5 to 9%
Nu-Tier Brands 4/4/2017 4/24/2017 4 to 7%
Phillips 66 4/5/2017 5/10/2017 4 to 6%
Petro-Canada 4/5/2017 5/5/2017 up to 6% (excluding white oils and process oil)
SOPUS/Shell 4/10/2017 5/15/2017 up to 4%
CITGO 4/11/2017 5/15/2017 4 to 6%
Valvoline 4/11/2017 6/1/2017 up to 4%

  


2017 Price Increase Timeline – Lubricant Manufacturers
Round 2
Increase4132017

Lubricant Additive Prices Increase

Lubrizol announced it will increase the price of its additives in most product segments by 7% effective March 20, 2017.

Infineum USA announced an increase for most of its lubricant additives by up to 4%. The Infineum increase is effective February 27, 2017. Both Lubrizol and Infineum attribute the increases to significantly higher cost of raw materials.

For those unfamiliar with lubricant blending, additives (DI and VI) account for roughly 15% of the volume of material used to make a quart of motor oil and roughly 50% of the additive is base oil used as a diluent/carrier for the additives. Based on the recent increases in the price of base oils alone, it becomes clear why additive prices are moving up. Factors driving the increases become even more apparent when one looks at how the price of other raw materials used in additive manufacturing have risen over the past year.

When taken together, the recently announced increases in the price of base oil and additives are pushing the price of finished motor oils up by roughly 40 to 50 cpg in the first quarter of 2017. But the higher cost of base oil and additives alone do not tell the full story. This is because lubricant manufacturers are also seeing higher costs on packaging, transportation, and other raw materials and operating costs.

So hang on to your hat. It looks like 2017 is off to an interesting start.

D-A Lubricant Announces Lubricant Price Increase

D-A Lubricant Company announced it will increase the price of its lubricants from 5 to 6%. The increase is effective March 20, 2017.

Company Announced
Date
Effective
Date
Increase
Shell 1/16/2017 2/20/2017 5%
Reliance Fluid
Technologies (RFT)
1/17/2017 2/13/2017 6 to 8%
Warren Oil Company 1/20/2017 2/20/2017 Bulk: $0.15/gal
Packaged $0.20/gal
Grease $0.05/lb
CAM2 1/20/2017 2/13/2017 5 to 8%
Smitty’s Supply 1/20/2017 2/13/2017 5 to 8%
Chevron 1/20/2017 3/6/2017 Lubricants and Greases
up to 5%
Warren Distribution 1/23/2017 2/27/2017 5 to 8%
Old World Industries
(PEAK)
1/23/2017 2/13/2017 up to 8%
ExxonMobil 1/23/2017 2/22/2017 Lubricants and Greases
up to 5%
Total 1/23/2017 3/1/2017 up to 4%
Safety-Kleen 1/24/2017 2/15/2017 5 to 9%
Chemlube 1/25/2017 2/15/2017 5 to 7.5%
Phillips 66 1/25/2017 2/27/2017 Lubricants and Greases
up to 5%
Nu-Tier 1/25/2017 2/20/2017 5 to 8%
CITGO 1/27/2017 3/1/2017 3 to 5%
Advanced Lubrication Specialties (ALS) 1/27/2017 2/20/2017 5 to 8%
Valvoline 1/27/2017 3/1/2017 up to 5%
Allegheny Petroleum 1/31/2017 2/20/2017 $0.25 a gallon
Castrol 2/3/2017 3/20/2017 up to 5%
 D-A Lubricant 2/20/2017 3/20/2017  5 to 6%

Click Timeline to Enlarge Image

priceincrease2212017

Add One More to Round Two of Price Increases

Smitty’s Supply announced today that due to increases in the cost of raw materials used in the manufacturing of finished lubricants, it will increase the price of both its bulk and packaged lubricants.

Bulk and packaged lubricant prices will be increased by 6 to 10% a gallon (depending on product). Greases prices will increase by $0.03 pound. Pour in Treatments will be increased by $0.05 per unit,

These increases are effective July 18, 2016.

Antifreeze, washer solvents, brake fluid, and DEF will be excluded from this price increase.

Like many other lubricant manufacturers, this is round two of recent price increases for Smitty’s. As shown in the table below, Smitty’s first of the year was announced on May 18th.

PriceIncrease762016

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