mike moorhead - trufuel
TRANSCRIPT
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2015 National Sales MeetingMarch 24th – 26th
Houston, Texas
Engineered Fuel For Outdoor Power Equipment
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Mar 24, 2015 National Sales Meeting
TruFuelOEM AccountsPrivate Label Packaging
2015 National Sales Meeting
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Section 1 - TruFuel
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Trufuel – Product Overview
For consumers this means: Convenience – Performance – Protection
• Engineered fuel• Premixed• Ready to use• Ethanol free
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Premixed To The Exact Specifications Set By Manufactures
50:1
40:1
No More Mixing – Just Open And Pour
Saves Time
Easy Pour Can – No Mess
Convenience :
1. Just twist off the top 2. Pour 3. Prime and get to work
vs.
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It’s A Racing Fuel For Small Engines
Trufuel Is Made From The Highest Quality Components Available:
We Removed The Bad Actors In Pump Gas
Alkylate Base Blend
No Ethanol
Optimized RVP
No Olefins
Lower Aromatics
Performance:
TruFuel Equipment that performs better lasts longer
vs.
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Full Synthetic Lubricant – Best In Class
Blended To The Exact Ratio Prescribed By The OEM 50:1 / 40:1 – Never Rich Or Lean
Contains Zero Ethanol – Will Never Be The Subject Of Phase Separation
Extended Shelf Life – Unlike Typical Pump Gas That Can Begin To Oxidize In A Little
As 30 Days - Trufuel Remain Fresh And Stable For Years.
Protection:
vs.
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The Vast Majority Of The Nations Pump Gas Contains >10% Ethanol
Although Fine For Automobiles Ethanol Can Create A Myriad Of Problems For Small
Engines And Outdoor Power Equipment
Ethanol In Pump Gas – why it’s a problem
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TruFuel Superior Environmental Impact
• Engineered Fuel vs. Conventional Pump Gas- NO olefins and significantly reduced butane to reduce smog formation.- NO ethanol and consistent vapor pressure which reduces emissions.- NO benzene, a known carcinogen. - Significantly lower aromatics/sulfur and superior distillation to reduce particulate matter
• Engineered vs. Conventional 2-Cycle Lubricant- The TruFuel™ lubricant is formulated with synthetic base oils and premium additives. The premium additive contains modern components to provide excellent engine cleanliness, which improves engine performance thus reduces emissions.- The synthetic base oils burns more completely, which reduces smoke, i.e. particulate matter
• Environmentally Friendly Packaging- The can design reduces spillage, thus reducing VOC emissions. - The can is manufactured from steel and HDPE, which are recyclable.- No disposal of stale fuel
Better for the Environment
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OEM Fuel Ratios
50:1 Brands:
HusqvarnaStihlEcho Ryobi
40:1 Brands:
Troy-Bilt PoulanCraftsman McCulloch
4-Cycle Examples
Snow Removal Power WashersWalk behind mowerGenerators
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Available Sizes
4.75 gallons110oz.
48 gallons
32oz.
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PACKAGING SAFETY
Packaging Exceeds Safety Standards
50% thicker gauge steel than standard wall cans
Can designed to control Vapor Pressure
Custom designed closure to prevent can rupture in case of fire
Child proof cap
Case package and individual cans have UN Certification
Complies with NFPA 30 and BIC Codes
DOT Consumer Commodity ORM-D Approved
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Customer Base – Sales Strategy
Retail Partners Lawn & Garden Distribution
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MTD – Key Account Overview
Purchases (Gallons):2011 129,3722012 259,836 +100.8%2013 507,080 +95.5%2014 725,059 +42.9%
Purchase and Distribute Quarts and Gallons
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MTD – Key Account Overview
Retail Sell through in Quarts
2012 429,2782013 966,424 +125.1%2014 1,609,353 +66.5%
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MTD – Key Account Overview
Further MTD Distribution
• Sears TruFuel At Retail Stores TruFuel At Home Stores TruFuel At Repair Centers * Craftsman• Menards• Tractor Supply• Ace• True Value
• Mid States• Orgill• Do It Best• Cub Cadet• Independent Arnold CustomersVia Eight Independent Distributors
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THD – Key Account Overview
Retail Sell through in Quarts
2012 301, 587
2013 609,383 +102%2014 1,105,374 +81%
• Working on a Gallon Test in 100 Stores
• Added homedepot.com in 2013
• Working on Cross Promotions with Whole Goods vendors
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OR
WAMT
WY
CO
NMAZ
UTNVCA
SD
ND
NE
KS
OK
TX
LA MSAL GA
SC
NCTN
AR
MO
IA
IL IN
MN
WIMI
PAOH
FL
NYNE
NJDEMD
VAKYWV
IDScotsco
Billious
Smiths South-Central
Oscar Wilson
Gardner
Servantage -Dixie Sales
John Landis
Beaver Valley
National Independent Distribution
AES
Marr
Roberts
RBI
National Distributor Network
CPD
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Automotive – Key Account Overview
Automotive ChannelO’Reilly’sLong history with TruFuelAll three fuels on the floorPromotional a couple times per year
NAPAHistory with several small groups of storesNew sales thanks to RP
AutoZoneMeet with them in 2014RP closed the deal in 2014Great opening orders
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Canadian Distribution
CANADA
MTD Limited• Canadian Tire• Lowe’s• Rona• Home Hardware• Sears• Tractor Supply• Independents• Cub Cadet
The Home Depot• 181 Stores • Initial Shipment February 2015• Second and Third Quarter QP’s
Servantage(Dixie Sales)• Independents
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Merchandising
3 - 4 Locations on the Shelf:• Accessories bay• Line trimmer display • Echo products bay• Mower accessories (4-cycle)
Online - www.HomeDepot.com
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Merchandising
Innovation End-Cap with TruFuel Video 2 to 3 Wing Stacks in OPE Aisle (3-11 months)
Account specific custom designs
Increased Shelf Space & Positioning
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Tradeshows 2015
Event Name Category Start Date End Date Location Booth Size
House Hasson Dealer Market OPE / Retail 1.8.15 1.10.15 Nashville, TN 10x10
Fire Department Instructors Conference Emergency Response 4.20.15 4.25.15 Indianapolis, IN 10x30
National Hardware Show OPE 5.5.15 5.7.15 Las Vegas, NV 10x30
Fire Rescue International Emergency Response 8.26.15 8.29.15 Atlanta, GA 10x20
Cub Cadet Dealer Convention OPE / Distributor 9.15.15 9.16.15 Nashville, TN 10x10
Green Industry Equipment + EXPO OPE 10.21.15 10.23.15 Louisville, KY 10x20
TRADESHOW SCHEDULE 2015
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TruFuel - Emergency Response
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Fire Channel / Market Overview
There are 1,140,750 local firefighters in the United States• 31% - 354,600 are career firefighters.• 69% - 786,150 are volunteer firefighters.• Departments protecting larger communities tend to have a higher proportion of firefighters in the age groups 30-39 and 40-49 than smaller communities.
Fire Departments 30,052
Fire Stations 55,150
Pumpers 69,150
Arial Apparatus 7,000
Suppression Vehicles 76,300
49.8% of the US population is protected by “all career” firefighters
All Volunteer Mostly Volunteer Mostly Career All Career
66%
19%
7% 8%16% 18% 17%
50%
U.S Fire Departments By Type & Population Protected
Fire Departments U.S. Population Protected
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Trufuel Benefits - Emergency Response
FEMA / Urban Search & Rescue / Emergency Responders
High-Octane, Ethanol-Free Fuel for small enginesEngineered for both 2 and 4 cycle engines
The fuel is utilized in a wide array of applications fire fighters and emergency responders depend on including:
• chainsaws• vent fans • generators• outboard motors• pumps• blowers• cut saws• hydraulic rescue tools
Benefits: Extended Storage remains fresh and ready to use for years Premixed no need to mix or measure / ready to use / precise mix every time Cost Savings drastically reduced maintenance / replacement costs / no wasted fuel Increased performance easier start up / smooth idling / quicker trigger response Engineered for small engines 92 octane / clean burning / optimized for high revving, hotter burning engines
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FEMA
Urban Search & Rescue
28 Task Forces Currently In U.S.
Each task force consists of two 31 person teams, four canines, and a comprehensive equipment cache. US&R task force members work in four areas of specialization: search, to find victims trapped after a disaster: rescue, Which includes safely digging victims out of tons of collapsed concrete and metal: technical, made up of structural specialists who make rescues safe for the rescuers; and medical, which cares for the victims before and after a rescue.
In addition to search and rescue support, FEMA provides hands-on training in search and rescuetechniques and equipment, and technical assistanceto local communities.
Urban search and rescue is considered a “multi-hazard” discipline, as it may be needed for a variety of emergencies or disasters, Including:
• Earthquakes• Hurricanes• Typhoons• Storms• Tornadoes• Floods • Damn failures• Technological accidents• Terrorist activity• Hazardous material releases
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Fema Task Forces / Technical Rescue / Hazmat
Los Angeles City Fire Department
Orange County Fire Authority
San Diego Fire-Rescue Department
Clark County Fire Department
Task Forces / Special Operations Currently Using or Evaluating TruFuel:
United States Secret Service
Memphis FireDepartment
Ft. Worth FDTechnical Rescue
Philadelphia SpecialOperations Command
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Emergency Response / Fire Channel Distributors
Since 1908, Darley has been dedicated to serving the World’s Fire and Emergency Services. Darley builds Fire Trucks, manufactures Fire pumps and sells Fire Fighting, Emergency and Special Operations Equipment through our international catalogs.
FireRescue1 is revolutionizing the way the fire service community finds relevant news, identifies important training information, interacts online and researches product purchases and suppliers. It's the most comprehensive and trusted online destination for firefighters and fire departments worldwide.
Casco industries, Inc. mission is to bring the Fire Service Industry the finest lines of fire service products on the market today at the best prices and service available. Our commitment is to our customers and the trust and relationship that we have built over the years by "providing protection for those who protect us" since 1950. In addition Casco Industries, Inc. is committed to providing the fire departments in all states with up to date information, training, equipment and services of the products we sell.
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Emergency Response - TF Performance Task Force
• The truck and trailer are branded mobile billboards used to promote the TruFuel wherever the crew goes
• Truck/Trailer Program on-call & ready for deployment to Tornado & Hurricane impact areas - based out of Dallas
• TruFuel Truck/Trailer can be deployed to key account parking lot - disaster relief staging area for support /equipment repairs from truck’s stock
• Truck will also provide homeowners in need with TruFuel samples in impacted neighborhoods
• Ability to secure all-access credentials - capability to distribute TruFuel in disaster zone
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Emergency Response – Hurricane Disaster Response Program
Lowe’s maintains 200 – 8 case quarter pallets located in 3 emergency distribution centers strategically located throughout the country - at the ready at all times – replenished annually.
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Engineered Fuel - OEM Customers
Calumet Packaging Currently Manufactures Engineered Fuel Products for The worlds largest producers of Outdoor Power Equipment.
Today approximately 40% of our total fuel packaging volume is done in private label
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OEM Fuel Products – TruFuel paved the way
Upon the introduction of TruFuel, we were contacted by most large manufacturers of OPE
• Ethanol is a major problem – returns and customer complaints are killing these guys. An estimated 80% of all returns are attributable to poor/degraded fuel.
• OEM’s are well positioned to drive the category • All have extensive dealer networks and can achieve immediate shelf placement• Brand Loyalty - 70% of people buy the corresponding oil products for the OPE• Existing Warranty Programs can be leveraged to drive trial. Husqv 3 cans = 2 years
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Market Potential For The Engineered Fuel Category
Hand Held Power Equipment: Approx 11M new units sold annually >70M units in operation
2 Cycle Oil – Annual Usage (North America) 4M gals consumed 50:1 ratio = 200M gallons of fuel burned in small engines Approx 60% is used in commercial operations Estimated “retail” market size for Engineered Fuels = > 80M gals annually.
Cycle Oil2
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Historical Growth Eng. Fuel Category - Revenue Growth
2010 2011 2012 2013 2014 2015 (E)$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
$35.0
1,423,600.3,276,439
7,262,738
13,521,699
23,425,000
29,500,000
The good (and somewhat scary) part of the story! Estimated 2015 Total Engine Fuel Volume = 2.75M gals.
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Ancillary Products – Tru Brand extension
TruShield – top performing stabilizer and fuel treatment - all in one package
• Protects equipment from harmful effects of Ethanol
• Removes engine deposits
• Stabilizes fuel and inhibits corrosion
• Great for long term storage
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Private Label Packaging Strategy
What were seeking:
High volume potential with product mix that that aligns with our core competencies.
Or, the ability to Leverage CLMT feetstocks from CV, Princeton Freight synergies We encourage you to look at companies that are doing biz with CLMT in other areas and look for ways to expand those relationships.
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Private Label Packaging
Types Of Products:
LubricantsCar Chemicals SolventsIndustrial OilsCharcoal LighterEng/Racing FuelsAdditive BlendingVi Improver
Private Label Packaging – Strategic advantages
Calumet Specialty Products
o Operates 3 refineries within 30 miles of Calumet Packaging (Shreveport)
o Delivers significant, predictable volumes of high quality base oils & solvents
o Close proximity helps reduce freight costs & improve efficiency
CP works with the worlds leading
additive companies
o Lubrizol
o Afton
o Infineum
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Private Label Packaging
Examples of Existing & Prospects
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Private Label Packaging
Prospects
SeaFoam – packaging/Dist Oronite – Additive drumming Gold Eagle – contract packaging