16th Nov 2007 07:00
BP PLC15 November 2007 The following was issued by BP America Inc in the USA at 19.30 UK time NOVEMBER 15, 2007 BP TO SELL MOST COMPANY-OWNED, COMPANY-OPERATED U.S. CONVENIENCE STORES TO FRANCHISEES Long-term franchise agreements will preserve high-value fuels distribution system NAPERVILLE, IL - BP's U.S. Convenience Retail unit announced today that it willsell all of its company-owned and company-operated convenience stores. Themajority of sites will be sold to franchisees and some will also be sold todealers and large distributors (jobbers). The sale of the convenience storeswill be completed over the next two years. The sites will continue to market BPfuels in the eastern U.S. and ARCO fuels in the western U.S. The franchiseagreement is 20 years and requires sites to be supplied with BP or ARCO brandedfuels for the term of the 20-year contract. "By tapping into the entrepreneurial experience and knowledge of local stationowners, we will build a strong franchise network that will help us grow ourbusiness," said Fiona MacLeod, president of BP U.S. Convenience Retail.Currently in the U.S., about 95 percent of BP's retail sites are operated byindependent businesspeople. BP will support franchisees with a strong field-based staff and a small headoffice located in La Palma, California. The U.S. Convenience Retail office inNaperville, Illinois will close. As announced last month, BP will move to asingle franchised convenience store brand-ampm-in the U.S. "The ampm brand has a 30-year track record in the western U.S. and has seen verypositive results east of the Rockies based on the value that franchisees bringto the business. The brand has a 94 percent brand awareness rating west of theRockies, and a strong international presence in Japan, Brazil, and Mexico. Weare excited about growing the brand in the eastern U.S.," said MacLeod. The business change is in line with BP's October reorganization announcementaimed at simplifying the company and improving performance. Of BP's 13,000 U.S.retail sites, this sale of more than 700 company-owned and -operated conveniencestores will eliminate 9,500 BP convenience store positions and 350 businesssupport staff. About 100 employees from BP's Pipelines and Logistics Unit willalso be affected. "We know that these changes will be very difficult for our employees, and we areputting measures in place to assist affected business support staff, includingjob placement assistance," said MacLeod. "It's been our experience that themajority of convenience store employees are retained by the new owners." MacLeod emphasized that convenience retail is a key BP business that positivelyrepresents the BP brand, has a strong franchise base and a legacy of operationalexcellence. "This business and the people in it have created a culture ofexcellence that will be the backbone of our organization going forward." Diversity and inclusion continues to be an important part of BP's franchisingefforts. In 2006, BP began an initiative to recruit minority franchisees, andthat work will continue. "We are not leaving these communities," said MacLeod,"As much as possible, we want ampm stores to be owned and operated by people wholive in the communities we serve." Franchising opportunities in individual marketing areas will be announcedseparately. For more information on BP franchising, please visitwww.bpampmfranchising.com. Notes to Editors: • The ampm brand was founded in 1978 in Southern California by ARCO. The brand became part of BP when BP acquired ARCO in 2000. • ampm convenience stores have been recognized in the Franchise Times "Top 200" and Entrepreneur's "Franchise 500." • ampm stores are currently found in California, Nevada, Oregon, Washington and Arizona. BP is franchising stores in Chicago, Indianapolis, Pittsburgh and Atlanta; BP Connect stores in these markets will be converted to ampm. Remaining company-owned and -operated sites in these markets, as well as Columbus, Cleveland, Cincinnati and Orlando, will be converted to ampm convenience stores and franchised. There are more than 2,000 ampm stores in Brazil, Japan and Mexico. • A jobber is a company that purchases large quantities of fuel from a refiner (such as BP) for distribution to gas stations. • BP markets more than 15 billion gallons of gasoline every year to U.S. consumers through 13,000 retail outlets. BP is the single, global brand formed by the combination of the former British Petroleum, Amoco Corporation, Atlantic Richfield (ARCO) and Burmah Castrol. Media contacts: Valerie Corr, +1 (630) 821-3206 Scott Dean, +1 (630) 821-3212 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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