Major US Fuel Marketer Protects its Brand Promise and Revenue Stream:
Four current brand protection customers are in the top 10 largest oil companies in the world
Sole supplier of covert markers for market-leading, global racing fuel brand
A major oil company (OMC) and Authentix customer acquired the retail operations of another fuel marketer which increased the company’s holdings to over 10,000 retail sites in the United States. Following the acquisition, the risk of commingling and the compromised integrity of their combined fuel supply chain became a concern. There were also concerns about fuel terminals in the network running short of branded gasoline, opening the possibility for wholesalers to load unbranded fuel into trucks.
In response to their challenges, Authentix presented a fuel authentication solution using core technologies that included mass differentiated markers and gas chromatography-mass spectrometry (GC-MS) analysis, a technology considered to be the “gold standard” in forensic analysis.
In an effort to realize cost synergies associated with the acquisition, the oil company merged both entities to a single gasoline additive package. The oil company included the Authentix fuel marker as part of the new additive package.
The oil company has experienced a 7% decrease in failure rate directly attributed to a reduction in the commingling of non-branded gasoline with branded product.
Since its inception in 2002, the fuel authentication program has evolved to meet the changing needs of the oil marketing company. The reductions in commingling and improved terminal operations have provided their customers assurance of a vastly superior product, increasing brand confidence and competitive advantage.
Transparent enforcement of a more stringent supply chain has resulted in a level playing field, assuring standardization of quality levels across the wholesaler network. Protection of the supply chain has also resulted in increased revenues by reducing the substitution of non-branded products.