Cumberland Farms Subsidiary Gulf Oil Acquires Brand Rights for Entire U.S.

Gulf Oil L.P., a wholly owned subsidiary of Cumberland Farms Inc., Is ready to make a significant geographic brand expansion now that the company has acquired all rights, title and interest to the Gulf brand in the U.S. The Gulf brand has been in existence for almost 110 years. For the last 20 years, Gulf-branded gasoline in the continental U.S. has only been available in an 11-state region in the Northeast through a licensing agreement between Gulf Oil L.P.'s parent company and Chevron U.S.A. Inc., according to a news release. The Cumberland Farms subsidiary now controls the right to market the brand throughout the United States and its territories. This acquisition enables Gulf Oil to expand its use of the Gulf brand throughout the U.S. for the first time since it first acquired certain rights to the brand in 1986, the company stated.

Framingham, Mass-based Gulf Oil currently distributes motor fuels through a network of more than 2,000 branded gasoline retail centers and 12 proprietary oil terminals.

With Gulf Oil already supplying roughly 10 percent of the retail fueling stations in its 11-state market region, the petroleum marketer and subsidiary of Cumberland Farms Inc. was approaching saturation -- and feeling some geographic constraints. But with the acquisition of all rights, title and interest to the Gulf brand in the U.S. from Chevron Corp., the fishbowl just became much larger for the company.

For the last 20 years, Gulf-branded gasoline in the continental U.S. has only been available in an 11-state region in the Northeast through a licensing agreement between Gulf Oil L.P.'s parent company and Chevron U.S.A. Inc. The new deal, which became effective Jan. 12th between Chevron and Gulf gives the Massachusetts-based company the right to market the brand throughout the United States and its territories, enabling Gulf Oil to expand its use of the Gulf brand throughout the U.S. for the first time since it first acquired certain rights to the brand in 1986, the company stated.

Looking to add Orphaned Chevron Mid-Atlantic Sites
While Gulf Oil wanted the rights to the mark when it began an overhaul of the brand in 2005, it was when Chevron announced its decision to pull out of 10 mid-Atlantic markets in late 2009 that the pieces fell into place for Gulf to expand its agreements with the major oil company. Gulf decided they wanted to purchase the rights to market the brand in the states where Chevron had announced it was pulling out, and it eventually progressed to the national marketing acquisition.

Super Jobber on the Way?
As for the immediate future, Gulf is looking to pick up stations that lost the Chevron brand in those mid-Atlantic states. It’s a natural extension of the current market area. Gulf has no terminals in that region currently. Primarily, it will focus on the distribution channel in the area to fuel its network growth, rather than real estate or company-operated locations, he added. Gulf is seeking well established, tenured distributors in the new markets it is entering.