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CST Broadens Fuel Brand Portfolio With Phillips 66 Deal

SAN ANTONIO – Expanding its stable of fuel brands following its spinoff from Valero, CST Brands Inc. has signed an agreement with Phillips 66 with the opening of a new Corner Store convenience-store location in Tomball, Texas, to offer Phillips 66 fuel. The move adds Phillips 66 to Corner Store’s diversifying fuel portfolio.

The agreement also gives Corner Store the ability to share branding space on the fuel canopy to gain increased street-level visibility for its popular Corner Store brand.

As reported in a 21st Century Smoke/CSP Daily News Flash, CST Brands is planning to build additional Phillips 66 sites this year. The dual-branded canopy brings increased attention and traffic to both the fuel and in-store offerings.

After spinning off of Valero Energy Corp. in 2013, CST Brands added Shell fuel to its offerings in early 2015 with the acquisition of 22 former Timewise stores in San Antonio and Austin.

“We are excited about the opportunity to link the Phillips 66 fuel brand with a strong retail operator such as Corner Store. We look forward to additional opportunities to strengthen our branded presence in the Houston market and beyond with CST,” said Mike Krampf, manager of branded sales for Phillips 66.

At 4,650 square feet, the new Tomball Corner Store has a large, spacious format and features eight fueling stations with a diesel truck island.

“We are very excited to announce this new opportunity to partner with Phillips 66,” said Kim Lubel, president and CEO of CST Brands. “This has been a very good experience, and we look forward to working with Phillips 66 as we continue to grow.”

The average new-to-industry (NTI) Corner Store rings up close to twice the volume of fuel and merchandise as a legacy store in the U.S. network. CST Brands plans to continue its growth in 2015 with the building of 45 to 50 NTI stores in the United States and Canada.

Phillips 66, Houston, is a diversified energy manufacturing and logistics company with a portfolio of midstream, chemicals, refining and marketing and specialties businesses.

San Antonio-based CST Brands has approximately 1,900 gas stations and convenience stores throughout the United States and eastern Canada. In the United States, CST Corner Stores sell fuel and signature products such as Fresh Choices baked and packaged goods, UForce energy and sport drinks, Cibolo Mountain coffee, FC bottled sodas and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Dépanneur du Coin and Corner Stores sell signature Transit Café coffee and pastries. CST also owns the general partner of CrossAmerica Partners LP, a wholesale distributor of fuels that serves more than 1,100 locations across 23 states.


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