Valvoline Caps No Big Deal, Jobbers Say


Valvoline was among the large lubricant companies that imposed sales allocations in the wake of this years hurricanes, but distributors say impact was light thanks to delayed implementation and relaxation at the start of this month.

Distributors told Lube Report this week that Valvoline imposed allocations in mid-October of 50 percent on packaged goods and 90 percent on bulk deliveries. Two weeks later, they added, the company raised those caps to 100 percent of normal monthly orders. Valvoline declined yesterday to confirm or deny those accounts.

The nations three largest lubricant suppliers – Shell, Chevron and ExxonMobil – all imposed allocations earlier than Valvoline, due to disruptions in additive and base oil supply. Shell and Chevron did so in September, after Hurricane Katrina, while ExxonMobil took its action Oct. 1, in the wake of Hurricane Rita.

Distributors of various brands have offered varying assessments about the impact of the caps, with some complaining of being unable to get products they need, while others say the effect has been negligible. Several Valvoline jobbers said they have felt little if any effect.

We were fortunate in that Valvoline waited a while, and then [the stiffer caps] lasted just two weeks, said one distributor, who spoke on condition of anonymity. Now theyre at 100 percent, but [lubricant] consumption normally tails off this time of year anyway, so its really not a problem.

Related Topics

Market Topics