Essentially we were competing in the same types of markets with different brands, Coastal marketing manager Matt Mannette explained. We agreed we would no longer sell the Irving or Cobra branded windshield washer and antifreeze products, in exchange for [Recochem] using us as a manufacturer in eastern Canada to produce their products, as well as [producing for] a large portfolio of private label companies that they do business with. All those products would be put through us from a manufacturing perspective. So the Irving and Cobra products, from an antifreeze and windshield wash standpoint, would go away completely in all markets.

Coastal, which operates a 157,000 square foot facility in New Brunswick, said it still plans to invest in the Irving and Cobra lubricants product portfolio. Formerly known as Irving Lubricants, Coastal is owned by Fort Reliance, which is the holding company for all the Irving Oil companies.

We may look for export markets if there are opportunities there, but at this time our primary markets to serve are Ontario and east in Canada, and the northeastern United States, he said. So at least in those venues we would not market our products.

Mannette pointed out Recochem has recently opened a blending and packaging facility in Ontario. Their primary business is as a manufacturer as well, he continued. Utilizing our services in eastern Canada is a nice fit for their product and gives them great proximity to market. Logistically its a huge advantage when looking at the composition of these materials. He noted that windshield washer fluid consists primarily of low cost raw materials such as water, so proximity to market means tremendous efficiency and savings for both companies with such products.