Another Price Increase, MDA Removes 303 THF From Sale

Amalie Announced Lubricant Price Increases

Amalie announced November 17, 2017 that it will increase the price of its oil and automotive chemical products by 32 cents a gallon and 4 cents a pound on all greases. The increase will take effect December 16, 2017. Amalie attributes the increase to continuous rising costs of additives, base oils, corrugated, plastic and transportation.

For more on price increases, scroll down.

Missouri Orders 303 Tractor Hydraulic Fluids Out of the State

THF303Pic11172017

As reported last week by the Petroleum Quality Institute of America, he State of Missouri Department of Agriculture Weights, Measures & Consumer Protection Division ordered that effective immediately Tractor Hydraulic Fluid (THF) labeled only as “303” can no longer be sold in the state, and the reason why is clear.

The John Deere (JD) 303 designation is 57 years old and has been obsolete for 43 years. In addition, there are no specifications available for 303 THF, and as such products making only “303” claims cannot be tested to assure compliance with any known specifications. Because of this, in the interest of protecting consumers, the State of Missouri ordered that “303” THF cannot be sold in the state.

Missouri’s banning the sale of “303” THF will have a significant impact due to the proliferation of 303 fluids in the market. These fluids are typically sold as low cost THFs and account for a very significant share of total THF sales. In fact, in some markets they are the leading type sold. Further, they are produced and sold by many lubricant manufacturers, marketers and retailers in the US and some have already received Stop Sale orders from the State of Missouri Department of Agriculture Weights, Measures & Consumer Protection Division.

Although not necessarily a shot heard around the world, the actions taken by the state of Missouri will most certainly send a clear message to marketers, retailers and farmers in other states. Because whereas the State of Missouri is the first to ban the sale of 303 THF, chances are others will follow.

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Source: The Petroleum Quality Institute of America

Round 3: Price Increase Summary

The following is a summary of the price increases JobbersWorld reported on for the third round of price increase is 2017

 

Lubricant Manufacturers Round 3

Company Announced
Date
Effective
Date
Increase
Kleen Performance Products 9/6/2017 9/6/2017 60 to 80 cpg
ExxonMobil 10/20/2017 11/20/2017 up to 6%
Chevron 10/24/2017 12/4/2017 up to 6%
Warren Oil 10/25/2017 11/17/2017 4% to 9%
Chemlube 10/26/2017 11/20/2017 20 to 25 cpg
Advanced Lubrication Specialties (ALS) 10/26/2017 11/13/2017 6 to 10%
CAM2 10/26/2017 11/15/2017 4 to 9%
Smitty’s Supply 10/26/2017 11/15/2017 20 cpg Bulk
25cpg Packaged Lubricants
3cpp Packaged Greases
Phillips 66 10/27/2017 12/1/2017 6%
Nu-Tier Brands 10/27/2017 11/17/2017 up to 6%
Sinclair Lubricants 10/27/2017 12/11/2017 up to 6%
Old World Industries 10/30/2017 11/13/2017 up to 8%
Warren Distribution 10/31/2017 11/27/2017 6 to 9%
Allegheny Petroleum   10/31/2017  11/8/2017 30 cpg
Petro-Canada 10/31/2017 12/1/2017 up to 6%
Valvoline 11/1/2017 12/1/2017 up to 5%
D-A Lubricant 11/1/2017  12/1/2017 up to 6%
CITGO 11/2/2017 12/4/2017 4 to 8%
SOPUS/Shell  11/6/2017 12/11/2017 up to 6%
BP Lubricants/Castrol (including industrial)  11/7/2017  12/11/2017 up to 6%
Total 11/9/2017 12/11/2017 up to 6%
Amalie 11/17/2017 12/16/2017 32 cpg Oil and Automotive Chemicals, 4 cpp greases
Pinnacle Oil 11/15/2017 5 to 7%
Increase

CLICK TO ENLARGE

Increase11212017R3


Quick Stats for the Three Rounds of Price Increases in 2017
Days from the Start of Round 1 to the Start of Round 2 63 Days
Days from the Start of Round 2 to the Start of Round 3 205 Days
Average Price Increase for Round 1 5.79%
Average Price Increase for Round 2 5.75%
Average Price Increase for Round 3 6.31%

CLICK TO ENLARGEIncreaseTable1231172017

CLICK HERE FOR A TIMELINE OF ALL THREE ROUNDS OF PRICE INCREASES IN 2017

Increase11212017Long

AMALIE Oil Strikes Sales and Marketing Agreement With ESL TEKnologies for its Spectrol Lubricants

AMALIE Oil, the largest private and family-owned independent blender of lubricants in North America, has signed a strategic agreement with ESL TEKnologies (ESLT), whereby ESLT has the exclusive sales and marketing rights to Spectrol branded lubricants in the U.S. AC Oil Corporation, an AMALIE business unit located in North Charleston, SC, will continue to produce and package Spectrol lubricants.

“The opportunity to increase Spectrol’s market share in the 2.3 billion gallon U.S. lubricants marketplace presents a very real opportunity for our company and AMALIE,” said John T. “Cork” Jaeger Jr., ESLT’s CEO. “We’ve assembled a seasoned marketing and sales team that has vast experience in the lubricants industry. In addition, some of our people have been involved with developing advanced lubricant formulations. We look forward to applying this expertise to the Spectrol brand as well.”

In addition to Jaeger, who has extensive experience as an executive in the automotive industry, ESLT’s management team includes David Gempel as executive vice president and chief marketing officer. An industry veteran of 37 years, Gempel has held key management positions with firms such as Valvoline, ExxonMobil, Safety-Kleen and others.

Under licensing agreements, ESLT has access to a number of proprietary additive technologies that have been developed collaboratively with the University of Texas at Arlington, and industrial and federal laboratories. One such technology, which is aimed at improving gas mileage and tailpipe emissions, is currently being tested in a vehicle fleet. According to Jaeger, preliminary findings from this test are quite promising.

“We anticipate that this strategic partnership with ESLT will help us tremendously in achieving one of our essential corporate objectives, to extend the Spectrol brand and expand its market share,” said Harry J. Barkett, president and CEO of AMALIE. “We look forward to working with the management and sales teams that ESLT has assembled.”

ESLT has formed a board of advisors comprised of some of industry’s most experienced executives. Tom Plaskett, former chairman and CEO of Pan American Airways and Greyhound Lines, serves as chairman of this board. Other members include Allan McArtor, CEO of Airbus Group for North America and former administrator of the U.S. Federal Aviation Agency; Michael McMillan, who spent 40 years with the General Motors Research Center, where he was involved in developing advanced lubricants and certifying the engine oils for GM vehicles; and Tom Scott, a longtime executive vice president of The Warranty Group, with deep experience in the retail automobile industry.

The SpectrolTM Brand
SpectrolTM is a complete line of bulk and packaged lubricants formulated with premium quality base oils and proprietary additives for the automotive, commercial and industrial markets. Spectrol products meet or exceed all applicable API, ILSAC and manufacturer specifications and are specially engineered to meet the highest performance standards in the industry.

About ESL TEKnologies (ESLT)
ESLT (www.esltek.com) is a Dallas-based sales and marketing organization serving the 2.3 billion gallon U.S. lubricant industry. The firm is distinguished by its long-time advisors and investors, many of whom participated in a company formed in 2009 to develop lubricant technologies. That company was repositioned from technology development to sales and marketing in 2015, and recapitalized in 2017 as ESLT. Through various licensing arrangements, ESLT has access to advanced lubricant additive technology. As opportunities arise, ESLT plans to selectively apply these technologies via strategic partnerships with third parties, to provide differentiated lubricant products that meet identified needs in the marketplace.

About AMALIE Oil
AMALIE Oil (www.amalie.com) has its headquarters in Tampa. In December 2015, AMALIE acquired Delfin Group USA, a lubricant blending and packaging facility in North Charleston, SC, whose primary brand at the time was Spectrol.

Spectrol is a trademarked brand of AMALIE Oil Co.

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