MetroWest495 Biz

brand was thrust front and center once again with renewed focus, said Sabia. In 2008, Gulf was the first gaso- line retailer in Massachusetts to offer TV programming to customers at the pumps, giving retail partners a new potential revenue stream, according to Gulf, and potentially exhibiting a more forward-thinking stance foreshadowing things to come. Gulf's latest offering — selling fuel directly to businesses via its terminals and fuel supply points in 30 states — is Gulf LP's entrance into the commercial and industrial fuel supply markets, a "natural progression," according to a company statement. The new commercial and industrial branch will be led by Doug Moore, a former Hess Corp. executive, according to Gulf. "It has changed our trajectory," Sabia said of the new market. "In the eastern half of (the) U.S. we're up from 11 sites to 30, with over 100 in Puerto Rico as well. It's been nothing short of fantas- tic." Unbranded, uninhibited Meanwhile, it's not evident to cus- tomers that some Gulf products are even Gulf products at all. Selling its gasoline without the Gulf name is another market area where Gulf can sell petroleum-based products to places like Wal-Mart and its subsidiar- ies, as well as Stop & Shop, Costco, smaller heating oil dealers, truck stop chains and mom-and-pop retail estab- lishments, Sabia said. Gulf sold and distributed more than 1 billion gallons of non-branded petroleum products in the U.S. in 2011, according to the company. The unbranded market, Sabia said, is on a growth trajectory in many areas of the U.S., but has special obstacles here, even for Gulf. "There's lots of competitors … it's dependent on geography," he said. "In the Southeast, there is access to pipeline barrels and easy access to products along the pipeline. It's more limited in New England." Though from a regional standpoint this market may be a bit more challeng- ing, Sabia said, over time, more major oil companies have backed away from the unbranded market, allowing room for competitors that often put more focus on service and fairly priced products in this arena. Gulf also has a strong background in contract structuring and other assets that give it an edge, according to the company website: more than 250 million barrels of storage capacity; more than 75 locations; a transport carrier fleet and the added advantage of being able to adapt quickly to a changing market thanks to a solid supply information network. Beyond expanding into the commer- cial and unbranded space, it became a case of, "what else was a natural fit?" to geographically expand and diversify revenue, Sabia said. Power up At the start of 2012 — as part of this growth effort and due to continued deregulation — Gulf launched Gulf Electricity, providing discounted power to customers and small businesses in Massachusetts, Connecticut, Maine and New Hampshire. It recently began offering electricity in New York as well, Sabia said. Also in 2012, the company converted a significant percentage of its trucks to liquefied natural gas. "Half of our truck fleets that deliver to gas stations now burn natural gas," Sabia said. Further diversification or, as Sabia puts it, "spreading more bets around the table," came with licensing of merchan- dise over the past four years, such as T-shirts and other apparel; Hot Wheels cars; vintage-style home décor, such as signs; and accessories such as watches, clocks and key chains. "It was clear as we expanded our geography beyond the Northeast how many people in the new territory had Gulf logoed memorabilia, and the great nostalgia and affection that existed for our brand," he said. Size advantage Gulf's competition, said Sabia, is not necessarily a colossal oil giant like ExxonMobil, Shell or Sunoco. Exxon- Mobil, for example, with 2012 full-year earnings of $44.9 billion, has 76,900 employees. Cumberland Farms — with about 600 convenience stores — and its Gulf LP subsidiary generated about $15 billion in the same year, according to Gulf. Gulf LP employee numbers hover around 650. "There are very few that do every- thing we do … there's no exact look- alike," said Sabia. Being comparatively smaller has advantages, he said. "What we can offer is quick decision making," and the ability to be nimble in a volatile market such as energy, he said. As opportunities may be fleeting, strategy can and does change and may need to change fast. "It's certainly easier for a company of our size to react," he said. Sabia says Gulf considers its newer markets to be businesses in the devel- opment stage with plenty of growth potential. Though there is work to be done building up those efforts, Gulf is always interested in what it can leverage to diversify revenue, Sabia said. If the company learned any lessons from the Great Recession of 2009, he said, it's that companies have to diver- sify, especially companies in always- fluctuating market sectors. "What benefits a commodity com- pany is scale," said Sabia. "We want to do many transactions on this platform; commodities are a volatile business." n MetroWest495 Biz | February 2014 19 1986 Pay-at-the-pump is introduced in the United States with dispensers featuring a built-in credit/debit card reader system. 1990 The Clean Air Act, with the intent of eliminating pollution, creates major changes for the gas industry. 2005 New leadership takes control of Gulf Oil and charges the company with reinventing the brand. 2010 Gulf Oil acquires full national rights to the Gulf Oil brand from Chevron Corp. 2012 Gulf Oil launches Gulf Electricity. Residents and commercial customers get the chance to save as much as 14 percent on the energy portion of their power bills by switching from their traditional utility suppliers, while earning free Gulf gas. 2013 Continuing to diversify its energy offerings, Gulf is a forerunner in the Liquefied Natural Gas (LNG) market, beginning with swapping out 36 tankers with new ones fueled by LNG. Gulf, the brand that pioneered an industry... ...and continues to fuel the future. A Powerful Presence in Central Massachusetts For advertising information contact: Mark Murray, Associate Publisher 508.755.8004 x227 m @wbjournal.com The Worcester Business Journal A Fact of Business Life in Central Mass! murray Friday, February 28 • 8:00 - 10:00 a.m. FREE Breakfast Immigration Law Seminar for HR directors and staff. We will present on employment-based work visas, especially the H-1B for professionals. Beechwood Hotel • 363 Plantation Street, Worcester Contact us at 508-754-4100 or info@iandoli.com Register at www.iandoli.com Serving the immigration needs of businesses, professionals and families.

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