Page 3                                                          The Sun

                                                              Volume 4, Issue 6

Connection Committee (continued)
and help identify profit opportunities for their "brethren."
Merchant War Games – will soon be renamed. This is the initiative that helps Team Boston dealers design a complete integrated calendar of local store 		marketing events. Team Boston Sales Consultants are working with their customers to design and execute an individual program to fit the local market. Contact your Sales Consultant for assistance.

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Texaco/Chevron Merger
Chevron and Texaco will satisfy the following conditions listed in the consent order to complete the merger:
  • Texaco will divest its interests in the U.S. downstream joint ventures Motiva Enterprises LLC and Equilon Enterprises LLC. If Texaco is not able to complete a sale of its interest in Motiva to Shell and Saudi Refining, Inc., and its interest in Equilon to Shell prior to the merger, it will place the stock of the
Texaco subsidiaries that hold those interests in a Divestiture Trust just prior to merger close for sale within eight months of the merger date.
  • Subject to certain conditions, Texaco will extend its license of the Texaco brand to Equilon and Motiva on an exclusive basis until June 30, 2003, and on a non-exclusive basis until June 30, 2006.

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News Bleeps
Longer price inversions are expected to hurt hypermarkets.

An article in the September 17 edition of the FMPA News points out that, "As majors pledge to ‘hold the line’ on pump prices, jobbers feel that price inversions will now last longer and could deal some private branders a crushing blow in coming months."

The article quotes an East Coast chain marketer: "Politics, and not supply and demand, will determine the value of gasoline on the street. Right now, it looks like those politics will make it difficult to increase the price of gasoline, even in markets that are flirting with below-cost sales."

It goes on to point out that the last time majors held down retail prices was during the Gulf War. ARCO and others froze street prices, even as international and domestic markets saw prices spiral higher. Several

jobbers, particularly on the West Coast, were mortally wounded and are no longer in business.

In many parts of the country, there is already an oxygen-starved private brand sector, replete with cheap DTWs and retail numbers that have matched less than 50% of increased seen between Aug. 15 and the second week of September.

Ironically, some of the most significant strain may be placed on hypermarts. Branded jobbers and dealers could buy product in Dallas, the epicenter of "hypermatketing," for 92.5cts/gal at press-time. Unbranded quotes were 25cts higher and rack averages (the index of choice for many Big Boxers) were 5-10cts gal higher.

Increased security on oil, gas pipelines could have long-term costs.

Increased security at nuclear power plants, refineries and along thousands of kilometers of pipelines is likely to

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