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The Honolulu Advertiser
Posted on: Friday, July 17, 2009

Gas supplier changing at most Oahu 7-Elevens


By Taylor Hall
Advertiser Staff Writer

A majority of the 7-Eleven stores with gas stations across O'ahu are now being supplied by Mid Pac Petroleum LLC, owner of the 76 brand in Hawai'i.

Mid Pac outbid Aloha Petroleum for the rights to 16 of the 7-Eleven locations, which Aloha had held for nearly 30 years. Previously, Mid Pac supplied five 7-Eleven stations on O'ahu.

Aloha will still maintain distribution to 10 7-Eleven locations.

Mid Pac will now sell 76-branded gas at 7-Eleven locations such as South King Street, Waimanalo and Makaha, while Aloha maintains locations in Hawai'i Kai, North King Street and Nu'uanu Avenue.

With the 7-Eleven agreement, 76 will be sold at 68 stations across Hawai'i, more than any other gasoline brand in the state. Chevron is second with 37.

Jim Yates, president and chief executive officer of Mid Pac Petroleum, said it will spend $2 million to brand the pumps and replace storage tanks at five locations. The transition is taking place in July and August.

"It's a combination of a well-respected brand — and Mid Pac is the only locally owned gas provider," Yates said of the deal. "And keeping the money in state, we just think that 7-Eleven agreed."

Mid Pac is owned by Hawai'i-based Koko'oha Investments, a firm that includes Yates, Walter Dods Jr., Bill Mills and David Hulihee.

Aloha is owned by a British Virgin Island company, which in turn is owned by private, primarily U.S. investors.

In a press release, Larry Adams, director of sales and marketing for Aloha Petroleum, said that the deal "will not have a major impact on our business."

Aloha is presently restructuring its image, commissioning CBX, a nationally recognized branding firm, to develop a new image for the company's convenience stores. It also is developing four new retail sites to be opened sometime next year.

Mid Pac's deal will run 15 years, with the option to extend.

The only 7-Eleven gas station in Hawai'i outside of O'ahu is on the Big Island and is supplied by 76.

Mid Pac Petroleum formed in 2004, and in the same year it acquired the rights to the 76 brand in Hawai'i from 76's parent company, ConocoPhillips. .