GAITHERSBURG, Md. — Summer gasoline and refinery issues have been a major thorn in the side of motorists this summer, most notably on the West Coast and in the Midwest regions. With summer beginning to fade, motorists across the country will be seeing lower gas prices while motorists in these regions see less pump drama thanks to the eventual switch back to cheaper winter blends and the simplicity it brings.

The root of the volatility and summer price spikes starts with EPA’s Clear Air Act Amendments: they act to keep things complicated every spring and summer at the expensive of motorists yet at refiners delight. Refiners throughout the country are faced with the task of producing various fuels for various locales all to meet varying requirements set forth by varying forms of government from June through September, and even that varies by state.

It’s enough to make one’s head spin.

Areas most susceptible to massive prolonged summer time gas price spikes are areas that are somewhat isolated from help in one way or another.

Take the West Coast: it is nearly cut off from direct access to the nation’s refined product pipeline grid and a long boat ride separates it from easy access to the Gulf Coast, home to the bulk of the nation’s refining capacity. Throw California’s strict California Air Resources Board (CARB) requirements in the mix and you’re left with a unique blend of summer gasoline and barely any ability to be quickly resupplied in the event of a major outage. That’s exactly what contributed to some crazy swings in West Coast gas prices this summer, as supply that had been flowing to California temporarily vanished.

The Midwest, though better connected to the grid of pipelines, also suffered from shock this August when BP’s Whiting, Ind., refinery went down unexpectedly.

This refinery—the largest in the region and seventh largest in the country—provides reformulated gasoline for third largest city in the country as well as non-reformulated gasoline for areas outside the Chicago area. Price shocks were felt throughout the region and even into neighboring regions as concerns spread that gasoline would be diverted to areas with the widest margins.

Both situations, though thousands of miles apart, led politicians and consumer advocates to point fingers very quickly at oil companies. What they missed or forgot are the hodgepodge of regulations and agencies that govern the nation’s summer fuel requirements—certainly a major factor in the price spikes.

Politicians in several Great Lakes states hounded BP, calling for investigations from both sides of the political spectrum, and while many politicians will seek to gain from the situation, few have done anything to prevent the situation from happening again.

The good news is that both situations are now mostly in the rearview. ExxonMobil will soon meet with authorities to discuss replacement of parts at the unit affected with refurbished parts, and it seems that some resolve will come of it and that ExxonMobil could increase output in the weeks ahead. Meanwhile BP’s Whiting refinery got back online over a short time after it went down, thanks to emergency repairs, I’m told.

While oil companies fix their facilities, motorists will also be getting some help from fundamentals: gasoline demand will begin to taper off and EPA rules are relaxed after September 15, ushering in a cheaper winter gasoline across a wider area of the country. Oil markets remain well supplied and the future doesn’t bode well for oil bulls as oil inventories remain high and refiners begin their seasonal turnarounds.

The future does look bright for anyone filling their tanks: gas prices will likely continue to trend lower, likely dropping under $2 per gallon nationally by Christmas.

Patrick DeHaan is senior petroleum analyst for GasBuddy, Gaithersburg, Md. Reach him at pdehaan@gasbuddy.com.

JEFFERSON CITY, Mo. — Missouri Attorney General Chris Koster has announced that he has filed for a preliminary injunction to require retailer Zill LLC to either implement its emergency response plan following an underground petroleum release from Zill’s Kansas City gas station or cease operation.

Zill owns and operates Inner City Oil Co. Inc.

Koster sued Zill on August 12 after the company failed to implement a work plan it filed February 20 to address petroleum leaks from underground storage tanks (USTs) at Inner City Oil. Zill has still not completed the approved corrective action, and the Missouri Department of Natural Resources (MDNR) detected additional gasoline fumes over the weekend.

Because Zill has refused to follow provisions in the approved work plan, MDNR has had to take steps on its own to protect affected residents, including air testing and replacing sewer lines that were allowing vapor fumes to enter several of the houses in the neighborhood.

Koster is asking the court to order Zill to complete cleaning up the contamination, provide alternative housing where needed and take any additional actions needed to protect residents in the area. If Zill fails to complete the cleanup, Koster is asking the court to order Zill to empty the petroleum tanks and stop gasoline service at the location. The suit also seeks to recover costs incurred by the state.

“Zill has willfully ignored its responsibility to clean up the mess it made in this Kansas City neighborhood,” Koster said. “The company should either fulfill its obligation or close its gas operations.”

CHICAGO— Convenience-store retailers who sell spirits should pay attention to tea. It’s a more versatile beverage than you probably think.

Anne Mills, consumer research manager for Chicago-based Technomic Inc., noted in a September blog that tea-flavored beverage offerings are on the rise both on- and off-premise. In the off-premise retail arena, Lipton earlier this year launched Lipton Sparkling Iced Tea in lemon, peach and raspberry flavors.

Sparkling ICE rolled out a line of Sparkling ICE Teas in the same three flavors, while organic ready-to-drink teas such as Honest Tea are also “trending,” Mills wrote.

In the c-store channel, tea is holding its own against the onslaught from energy drinks and sports drinks, as canned and bottled tea dollar sales were up 7.9% ending 2014 from the previous year’s numbers, according to IRI. Ready-to-drink teas are regarded as “bright spots” in the specialty-beverage door, as well as coffee and milk substitutes.

Mills wrote the tea trend “is ramping up in the foodservice space as the number of iced tea and specialty tea beverages at Top 500 and emerging restaurant chains grew 8.8% and 5.7%, respectively, between 2013 and 2015.”

Wendy’s launched Honest Tropical Green Tea in April, which is made with a proprietary blend of fair-trade organic green tea leaves. Tea is even showing up as a flavor in items beyond beverages, like in Paris Baguette’s Early Grey Milk Tea shaved ice, Mills noted.

That’s The Spirit

Tea is among the fastest growing ingredients in spirit-based beverages at Top 500 and emerging chains, growing 32% on menus between 2013 and 2015, in terms of operator incidence. The growth of adult beverages featuring tea is because of the proliferation of tea-flavored spirits like sweet tea-flavored vodka.

Adding some historical perspective, Mills said the trend began in 2008 when a distillery near Charleston, S.C., introduced a sweet tea-flavored vodka called Firefly. Since then, several other brands have emerged, including Jeremiah Weed Sweet Tea from Diageo, Deep Eddy Sweet Tea Vodka and Seagram’s Sweet Tea. The “growth trajectories are varied” when it comes to new offers like these, said Mills.  

On premise, “mixologists are experimenting with tea as a flavoring element in cocktails, introducing tea tinctures, bitters, syrups and infused spirits to their drink programs,” wrote Mills.

Whether sweet, green or black tea, tea is showing up in adult beverages as both a mixer and flavored spirit. This is a “trend that’s expected to continue as at-home and on-premise mixologists seek to innovate and find new flavor experiences,” the analyst wrote.

SEATTLE — Jones Soda Co. is embracing the holidays with three limited-time soda flavors.

Continuing its tradition of spooky-themed beverages to represent Halloween, this year’s newly designed beverages come in two delicious flavors, Blood Orange and Lemon Drop Dead. This year’s packaging, inspired by the vintage look of classic monster movies, is intended for Halloween-themed celebrations for all ages.

“We have so much fun with our Halloween line and are excited to offer it again this year,” said Andrew Baumann, director of marketing for Seattle-based Jones Soda. “It’s a unique offering that tastes great and has amazing packaging that will get everyone in the Halloween spirit!”

The Halloween-themed sodas are available throughout the United States at Cost Plus World Market, select Kum & Go convenience-store locations, numerous independent stores and online at www.jonessoda.com.

Jones Soda also announced the release of its limited edition Pumpkin Pie-flavored beverage.

This beverage is a mix of pumpkin, cinnamon and nutmeg, with a hint of creamy, buttery crust flavor, making it a delicacy just in time for fall and the holidays.

Jones Soda is teaming up with fast-food restaurant Smoke’s Poutinerie to offer Pumpkin Pie at all locations throughout Canada. Starting Sept. 21, Pumpkin Pie will be featured as part of Smoke’s Thanksgiving Poutine Combo, which includes roasted turkey, stuffing, green peas and cranberry sauce.

“Pumpkin is the flavor of fall,” Baumann said. “We created this beverage to give our consumers and pumpkin-flavor enthusiasts the opportunity to enjoy all the flavor of pumpkin pie as only Jones Soda can do.”

Pumpkin Pie Jones Soda will be available across Canada for a limited time at all Smoke’s Poutinerie locations, select independent Jones Soda retailers and online at JonesSoda.com.

PRINCETON, N.J. – Every year, Gallup asks a sampling of American consumers to rate 25 major U.S. business sectors to see which they considered to be the most and the least popular. Americans love the food industry, but they hate oil companies.

Food-related industries (restaurants, grocery stores and farming) take three of the top five slots in the latest Gallup ranking, meaning respondents love them; however, the oil and gas industry is surpassed in respondents’ level of hatred only by the federal government.

The convenience-store industry sells both food and fuel, putting it in the awkward position of providing consumers with necessities that elicit strong positive and negative emotions, but necessities they need nonetheless. Some entrepreneurs would call that an opportunity.

The Top 5:

1. Computers.

2. Restaurants.

3. Internet.

4. Groceries.

5. Farming & Agriculture.

The retail industry as a whole takes the No. 8 slot.

The Bottom 5:

21. Legal.

22. Healthcare.

23. Pharmaceuticals.

24. Oil & Gas.

25. The Federal Government.

Historically, there is a statistically strong, albeit imperfect, relationship between gas prices and Americans’ views of the oil and gas industry, said Gallup. From 2001 to 2003, when the August price of a gallon of gasoline averaged around $2, adjusting for inflation, the percentage of Americans rating the industry positively was higher than the historical average of 23%. And views of the oil and gas industry have improved since 2012 as the price of gas has fallen.

Positive perceptions of the oil and gas industry fell to an all-time low of 15% in 2008, when gas prices averaged $4.09 per gallon. Americans’ ratings of the industry were also 15% in 2006 when gas was $3.43, a 40-cent increase from the prior year.

Americans’ perceptions of the oil and gas industry were fairly flat from 2009 to 2012, when gas prices were volatile, showing a steep drop in 2009 and then a sharp increase in 2011.

Even with the improved ratings in recent years, the oil and gas industry’s net rating in 2015 is -13, based on 34% positive ratings and 47% negative ratings

See the chart below to view all of the industries ranked in Gallup’s poll.

PHOENIX — Boulder Canyon Foods, a leading clean-ingredient snack food brand, has introduced a new food concept with the launch of its first functional food snack chip, called Protein Crisps.

Featuring pea and lentil proteins, Protein Crisps are made in the traditional Boulder Canyon manner, using clean food ingredients that are simple to read and easy to understand. They offer a light-yet-hearty multigrain crunch along with a blast of nutrition.

Featuring 10 grams of protein and 47 chips per serving, Boulder Canyon Protein Crisps will be available in two varieties—Dark Chocolate and Asiago Cheese. The protein-rich chips are available in 3-oz. packages at select retailers nationwide with a suggested retail price of $3.49 to $3.99 per bag.

The Dark Chocolate variety offers a balanced chocolaty flavor that isn’t overly sweet, while the Asiago Cheese snack is flavored naturally with just the right amount of cheese so as not to overwhelm the lightness of the chip itself, the company said.

Protein Crisps are gluten free, Kosher certified and contain no genetically modified ingredients. Each serving contains just 120 calories, with no saturated or trans saturated fats. In addition, they are naturally low in sugar with two grams per serving.  

“Nearly 60% of consumers are looking to add more protein in their diet,” said Steve Sklar, senior vice president and general manager for Boulder Canyon. “We also know that snack foods are playing the largest role they’ve ever played in today’s diet, so we felt the time was right for a delicious snack that offered a healthy boost of protein. I believe we have a winning recipe with our Protein Crisps, and we’re confident consumers will agree.”

Boulder Canyon Foods is a member of the Inventure Foods family of specialty brands, including Boulder Canyon Authentic Foods, Jamba, Seattle’s Best Coffee, Rader Farms, T.G.I. Fridays, Nathan’s Famous, Vidalia Brands, Poore Brothers, Tato Skins, Willamette Valley Fruit Co., Fresh Frozen and Bob’s Texas Style.

SOUTHLAKE, Texas —Citing numerous barriers to implementation of in-pump EMV technology by a 2017 deadline and an exorbitant $8.9 billion price tag over the next 10 years, an official with a major convenience-store technical standards body said he will be part of an effort to communicate the hardships to issuers and card brands.

Speaking before about 150 attendees at Arlington, Texas-based The Pinnacle Corp.’s 2015 users’ conference in Southlake, Texas, this week, Gray Taylor, executive director for Alexandria, Va.-based Conexxus, the technology advisory group affiliated with the National Association of Convenience Stores (NACS), named barriers to the data-security upgrades called “Europay MasterCard Visa” or EMV, as ranging from the lack of device certification to not enough in-field technicians for retailers to meet a credit-card company deadline of October 2017.

In addition to the deadline burden, Taylor laid out estimated costs for pump and in-store upgrades, including equipment, installation and business downtime among numerous factors, with initial compliance costs alone hitting $3.9 billion. Adding the cost of capital and maintenance over 10 years brought the estimate to $8.9 billion, with no direct return on investment.

Citing a major oil company source who Taylor said conducted internal calculations, the payoff timeframe could stretch over 30 years.

Later discussing the gravity of the shift with CSP Daily News, Taylor said, “No businessman would invest in anything that wouldn’t give 25% return on a five year payoff.”

That said, Taylor told attendees that he has accepted the inevitability of EMV as fallout from the data breach at department-store retailer Target, news of which drew broad media attention several years ago. That publicity, according to Taylor, gave the credit-card companies the opportunity to pose EMV as a solution—a conclusion he contests.

Taylor said he and his team are working with regulators and other groups to communicate barriers such as the following:

• Not enough technicians to complete the task by 2017.
• A certification bottleneck, where multiple devices have yet to achieve certification to run EMV.
• Dispenser manufacturers would have to ramp up 150% to keep pace with presumed demand.
• Financial hardships, with about 30% of retailers simply not having the ability to pay for the equipment with operating profit.
• Growth of fraud on retailers who lag behind—what Taylor estimates to be an uptick of 19 basis points, enough to put a retailer out of business.

LUBBOCK, Texas — The United Family has expanded the company’s rewards program with the launch of a points program allowing guests to earn free fuel or groceries by making everyday purchases at any of the 66 United Supermarkets, Market Street, Amigos and Albertsons Market grocery stores and United Express gas station and convenience stores in West Texas, Dallas-Fort Worth and New Mexico.

Through the program’s new features, rewards members earn one point for every $1 spent in-store.

“Enabling our guests to receive free fuel or groceries by making everyday purchases elevates the value of our rewards program,” said Robin Cash, loyalty marketing manager for The United Family. “In addition, guests can continue saving more by using our mobile app for customized coupons and member discounts on relevant items for each household.”

The points program addition is the latest in a complete rewards program that offers guests product recommendations, digital coupons and product discounts that are individually tailored to their shopping habits.

“We believe that in addition to staying competitive in pricing for our guests, offering ways to shop smart and save money is one more way The United Family can help take care of families in the communities we serve,” said Cash.

In its 99th year of operation, United Supermarkets LLC, dba The United Family, is a Lubbock, Texas-based grocery, gas station and convenience-store chain. The company is a wholly owned subsidiary of Albertson’s LLC.

ALLSTON, Mass. — bfresh, a new grocery shopping experience with a focus on fresh foods and convenience, opened in Allston, Mass. on September 4 and will celebrate its grand opening on September 18.

Created by Fresh Formats, an Ahold company established in 2014 to explore and develop new format opportunities, bfresh is a test model that the company said is a “complete departure” from traditional brick-and-mortar grocery stores. A novel concept with a small-store format, bfresh is targeting neighborhood foodies who value fresh, healthy food options and affordable pricing.

The Allston location is the first bfresh opened by Fresh Formats.

The 10,000-square-foot store will offer more natural and organic options than a typical market, with a selection of vegan, gluten-free and international items. It offers fresh organic produce, full-service meat, seafood, and deli departments stocked with organic, antibiotic-free meats and fresh, sustainable seafood. bfresh will also offer indulgence items and a selection of locally relevant household, health and beauty items to make it a one-stop shop for many neighborhood customers.

“Today’s grocery shoppers face several challenges including balancing food needs with tight budgets, finding convenient shopping options to fit tough schedules and feeding a strong desire to support local businesses,” said Suzi Robinson, marketing magus for Fresh Formats and a developer of bfresh. “We sought to provide an easy-to-shop solution for the Allston community. bfresh is designed for anyone who loves food and wants healthy, affordable, locally sourced options in their neighborhood.”

In addition to fresh grocery offerings, bfresh customers can shop for freshly prepared foods in its Little Kitchen. Based on a model from La Place, a fresh-food restaurant business in the Netherlands and Europe, Little Kitchen offers a “fresh-on-the-spot” customer experience that brings scratch-made, fresh, seasonal meals into the store. Menus change daily, showcasing simple recipes, and all the food preparation is done in front of customers. Shoppers can choose to order fresh smoothies, salads, pizza, Asian stir fry, breads, desserts, coffee and more.

The store’s streamlined, simple layout allows for products to speak for themselves. Prior to debuting in Allston, Fresh Formats developed an independent learning lab in Center City Philadelphia where teammates and customers experiment with and evaluate new ideas to change the grocery shopping experience.

bfresh is operated by Fresh Formats LLC, an Ahold company. Ahold is based in The Netherlands. Ahold USA is based in Carlisle, Pa., and Quincy, Mass. Grocery brands include Stop & Shop, Giant Food, Giant Food Stores and Martin’s Food Markets, as well as online grocery service Peapod. Stop & Shop, Giant Food, Giant Food Stores, Martin’s Food Markets, Peapod Stop & Shop, Giant Food, Giant Food Stores, Martin’s Food Markets, Peapod.

SAN ANTONIO — Kendrick Oil Co. has become the most recent distributor to sign on with VP Racing Fuels’ retail branding program. The Friona, Texas-based distributor supplies 47 retail locations and other customers in Texas, New Mexico, Oklahoma, Kansas, Colorado and Louisiana.

“Through close evaluation and scrutiny, we chose VP Racing Fuels because it gives Kendrick Oil and the dealer the flexibility to have a nationally recognized brand while simultaneously buying fuel from the lowest cost supplier every time,” said Neal McCarty, business development and branded liaison at Kendrick Oil.

“Ultimately, this allows our dealers to price aggressively in their market and have a strong brand presence to drive business,” he continued. “VP’s program allows Kendrick Oil and our dealers to have the best of both worlds. Kendrick Oil now has a solution for those dealers looking for a strong brand, low processing rates and low cost fuel.”

“We’re extremely pleased to bring Kendrick Oil on board with our retail branding program,” said Alan Cerwick, president of VP Racing Fuels. “With a long history of success, Kendrick Oil has a well-deserved reputation as a savvy, forward-thinking marketer. Their confidence in VP’s program speaks volumes and we look forward to growing our businesses together in the south central U.S.”

Based in San Antonio, VP has fueled champions in every form of motorsport on land, sea and air since 1975. VP is the official racing fuel of Tudor United SportsCar Championship, AMA Supercross, TORC: The Off Road Championship, NMRA, NMCA, World of Outlaws Sprint Cars and Late Models, Pirelli World Challenge, PDRA and Rally America, among more than 60 VP-sponsored series and sanctioning bodies.

Gas stations and convenience stores that join VP’s retail branding program also distribute VP’s other product lines, including ethanol-free VP Small Engine Fuels, formulated for two-cycle and four-cycle outdoor power equipment; VP Madditive performance chemicals; VP PowerWash and more. VP also markets VP PowerMaster hobby fuels for radio-controlled (R/C) racing.

HK (Pudge) Kendrick and his wife, Deke, founded Kendrick Oil in 1951. The company opened its first Fast Stop convenience store in the early 1970s and today owns and operates 25 c-stores and travel centers. Over time, it has expanded its wholesale fuel brokering operations. It employs more than 200 people in its wholesale and retail operations, and has accounts at more than 120 terminals in six states. Besides VP Racing Fuels, Kendrick also offers branded fuel from Valero, Alon and Phillips 66, as well as unbranded options.