mike moorhead - trufuel

41
1 2015 National Sales Meeting March 24 th – 26 th Houston, Texas Engineered Fuel For Outdoor Power Equipment

Upload: rpmarketing7

Post on 04-Aug-2015

135 views

Category:

Business


6 download

TRANSCRIPT

Page 1: Mike Moorhead - TruFuel

1

2015 National Sales MeetingMarch 24th – 26th

Houston, Texas

Engineered Fuel For Outdoor Power Equipment

Page 2: Mike Moorhead - TruFuel

2

Mar 24, 2015 National Sales Meeting

TruFuelOEM AccountsPrivate Label Packaging

2015 National Sales Meeting

Page 3: Mike Moorhead - TruFuel

3

Section 1 - TruFuel

Page 4: Mike Moorhead - TruFuel

4

Trufuel – Product Overview

For consumers this means: Convenience – Performance – Protection

• Engineered fuel• Premixed• Ready to use• Ethanol free

Page 5: Mike Moorhead - TruFuel

5

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.

Page 6: Mike Moorhead - TruFuel

6

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.

Page 7: Mike Moorhead - TruFuel

7

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.

Page 8: Mike Moorhead - TruFuel

8

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

Page 9: Mike Moorhead - TruFuel

9

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

Page 10: Mike Moorhead - TruFuel

10

OEM Fuel Ratios

50:1 Brands:

HusqvarnaStihlEcho Ryobi

40:1 Brands:

Troy-Bilt PoulanCraftsman McCulloch

4-Cycle Examples

Snow Removal Power WashersWalk behind mowerGenerators

Page 11: Mike Moorhead - TruFuel

11

Available Sizes

4.75 gallons110oz.

48 gallons

32oz.

Page 12: Mike Moorhead - TruFuel

12

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

Page 13: Mike Moorhead - TruFuel

13

Customer Base – Sales Strategy

Retail Partners Lawn & Garden Distribution

Page 14: Mike Moorhead - TruFuel

14

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

Page 15: Mike Moorhead - TruFuel

15

MTD – Key Account Overview

Retail Sell through in Quarts

2012 429,2782013 966,424 +125.1%2014 1,609,353 +66.5%

Page 16: Mike Moorhead - TruFuel

16

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

Page 17: Mike Moorhead - TruFuel

17

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

Page 18: Mike Moorhead - TruFuel

18

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

Page 19: Mike Moorhead - TruFuel

19

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

Page 20: Mike Moorhead - TruFuel

20

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

Page 21: Mike Moorhead - TruFuel

21

Merchandising

3 - 4 Locations on the Shelf:• Accessories bay• Line trimmer display • Echo products bay• Mower accessories (4-cycle)

Online - www.HomeDepot.com

Page 22: Mike Moorhead - TruFuel

22

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

Page 23: Mike Moorhead - TruFuel

23

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

Page 24: Mike Moorhead - TruFuel

24

TruFuel - Emergency Response

Page 25: Mike Moorhead - TruFuel

25

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

Page 26: Mike Moorhead - TruFuel

26

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

Page 27: Mike Moorhead - TruFuel

27

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

Page 28: Mike Moorhead - TruFuel

28

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

Page 29: Mike Moorhead - TruFuel

29

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.

Page 30: Mike Moorhead - TruFuel

30

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

Page 31: Mike Moorhead - TruFuel

31

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.

Page 32: Mike Moorhead - TruFuel

32

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

Page 33: Mike Moorhead - TruFuel

33

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

Page 34: Mike Moorhead - TruFuel

34

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

Page 35: Mike Moorhead - TruFuel

35

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.

Page 36: Mike Moorhead - TruFuel

36

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

Page 37: Mike Moorhead - TruFuel

37

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.

Page 38: Mike Moorhead - TruFuel

38

Private Label Packaging

Types Of Products:

LubricantsCar Chemicals SolventsIndustrial OilsCharcoal LighterEng/Racing FuelsAdditive BlendingVi Improver

Page 39: Mike Moorhead - TruFuel

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

Page 40: Mike Moorhead - TruFuel

40

Private Label Packaging

Examples of Existing & Prospects

Page 41: Mike Moorhead - TruFuel

41

Private Label Packaging

Prospects

SeaFoam – packaging/Dist Oronite – Additive drumming Gold Eagle – contract packaging