More Vortex: premium fuels expansion keeps on rolling

Spreading the word in the North – Bruce Hollett and colleague Amanda Coad

The promising start has convinced Caltex there’s a place for a ‘retail focused’ diesel on forecourts

As Vortex premium petrol sales continue to outperform competitors’ products, Caltex has announced a new supply deal to make Vortex 98 available in the northern half of Queensland for the first time.

High-octane product is now being sourced out of Townsville, making Vortex 98 petrol available at Caltex sites from Mackay northwards to Cairns.

Caltex’s high-octane brand has been available for some time in the southern half of the Sunshine State. Making it available in the north to complement Vortex 95 represents an additional convenience for customers, especially those with high-powered cars, says Shannon Fallis, Business Manager Retail – Queensland.

Many European imported vehicles now also require high-octane fuels. “By not having it we might have excluded potential customers,” Shannon says.

“Vortex 98 is aligned with where we want to head as a convenience retailer,” adds Rob Watson, Retail Sales Manager for Queensland and Northern Territory. “There’s been terrific growth in premium fuels. Customers who use them generally are better off and have a higher propensity to spend in the shop.”

Caltex’s premium fuels suite outperformed industry growth by 6.4 per cent last year, resulting in a two per cent jump in market share to 32.9 per cent. At the same time, the Vortex portfolio has been expanded with a successful trial of Vortex premium diesel, now being rolled out across Australia.

It’s incremental volume

Wherever Caltex introduces Vortex 98, premium sales tend to grow dramatically with virtually no cannibalisation of Vortex 95.

The experience of Queenslander Bruce Hollett, franchisee of three sites in Mackay, supports this. After the first week Bruce’s outlets were shifting an average of 2,000 litres of Vortex 98 a day.

“It’s all incremental volume,” Bruce says. “I’m delighted. I didn’t think we’d be selling that amount so quickly.”

Mackay has one of the highest rates of Ford and Holden V8 ownership in the country, Bruce says. With these drivers he and his employees are pushing the fact that the fuel has an additive that cleans injection systems.

“I’m running an education program for staff because it’s critical they can answer questions and recommend it to folks who have vehicles suited to it. If a customer asks a question and the employee doesn’t know the answer, it could turn them off.”

Bruce and his team are emphasising these points about Vortex 98:

It’s the best fuel on the market.
It can take you further per tank of fuel.
It has an additive that cleans injection systems.
It’s mainly designed for V8s, higher performance and modern European cars, but can benefit any car.

To support the selling effort, customer service attendants have been equipped with hats, badges and leaflets. And decals on sites are being upgraded, with old signage replaced by Vortex Premium Fuels or Vortex 98 signs.

Vortex Diesel in more places

Meanwhile, to increase its share and penetration of the premium market, Caltex is now supplying Vortex Diesel in more locations.

The premium diesel product has been trialled in Sydney since late 2007 with all feedback “extremely positive,” says Biofuels Marketing Manager Mabelle Reyes. “It’s a blend of extra-low sulfur diesel with an additive pack that contains a detergent that removes deposits on fuel injectors, has an anti-foam chemical and is anti-corrosive.”

The promising start convinced Caltex there was a place for a “retail-focused” diesel on forecourts. Currently some 30 Caltex sites in New South Wales offer it, and it recently became available from the rack at the Newcastle terminal.

A national rollout will follow. Vortex Diesel will be launched in Perth, Brisbane and Melbourne during the remainder of 2009 and in the rest of Australia through 2010. By the end of 2009 the number of sites retailing it will be close to 130.

National rollout

“The premium diesel upgrade work at Newcastle included refurbishing a storage tank to accommodate the additive, reconditioning of the blending pump and pipework to tanker loading racks and installing additive blending meters”, says Terminal Operations Manager Dominic Lum. The upgrade was completed in a short timeframe at modest cost.