Co-op corners gas market
And then there were four Co-op gas stations in Penticton.
Over the span of about three weeks in late February, construction crews converted the city’s three existing Husky stations into new Co-op gas bars.
They’re among 25 Husky stations acquired by Langley-based Otter Co-op in September 2022 as part of a larger deal between Federated Co-operatives Ltd and Cenovus Energy.
With the three makeovers in Penticton complete, Co-op now has four gas bars in the city – the most of any company.
Jack Nicholson, CEO of Otter Co-op, explained in an email a lot of careful planning went into each renovation to minimize down time.
“We try to complete all work within one week, though some outdoor painting of the buildings or line painting and concrete or asphalt work may have to be completed in warmer weather,” said Nicholson.
“Renovations include upgrading our till systems to accept Co-op memberships, new gas pumps, updated interior and washrooms, and paint and décor inside and out, including new signage and replacement of any interior equipment needing replacement.”
Nicholson said the work was put out to tender and local contractors were used where possible.
But even with a market-leading position now, Co-op plans to stick with what’s worked in Penticton. (It will also continue supplying fuel to a privately owned Husky station in Summerland)
“We just want to give customers a convenient location to shop at with clean washrooms and a good selection of products. Our prices are competitive and all profits go back to the communities we operate in,” said Nicholson.
Otter Co-op was founded in 1922. While membership isn’t required to purchase gas from one of its stations, it does pay off. In exchange for a one-time $10 registration fee, customers receive one share in the company and get an annual cut of its profits based on their purchases.
“If you ever move out of our trading area, we will even give you back your $10,” added Nicolson.
According to Otter Co-op’s 2021 annual report, it paid out a total of $5.9 million to its approximately 52,000 members that year.
To celebrate its new Penticton locations, Otter Co-op is offering customers one free coffee or slushie each day from now through March 27.
Federated Co-operatives Ltd. announced in November 2021 it had struck a deal with Cenovus Energy to acquire 181 Husky stations across western Canada for $264 million. Cenovus flipped another 156 stations to Parkland Corp. for $156 million.
Otter Co-op, which opened its first gas station in Penticton in 2017, is an independent member of the larger Federated Co-operatives Ltd. group and used that connection to acquire the 25 Husky sites.