The Circle K Fuel brand has experienced remarkable growth in the U.S. gas brand market over the past five years, since its launch in Florida in 2018, reports OPIS MarketSharePro.
Impressive Market Share Expansion
In 2018, Circle K held the 21st position in the gas brand market, with a 1.58% share. Fast forward to the year-to-date figures of 2023, and Circle K has climbed to the 11th spot with a significant market share of 3.29%. These statistics are based on fleet transactions, offering solid evidence of the brand’s success.
Strengthening Presence in North America
Alimentation Couche-Tard Inc., the Canadian-based company that owns the Circle K brand, announced during its recent quarterly earnings call that it now operates 4,200 stores across North America that provide Circle K Fuel. With approximately 9,200 stores in North America overall, the majority of which offer fuel, Couche-Tard maintains a strong presence in the industry. While certain locations in Canada are branded as Couche-Tard, and U.S. stores fall under the Holiday brand, most outlets proudly display the Circle K logo.
Overtaking Established Competitors
OPIS figures from the past month reveal an impressive milestone for Circle K as it reached ninth place among gas brands, capturing a market share of 3.40%. This achievement is particularly notable since it surpassed well-known brands such as Sunoco (11th), Marathon (12th), Phillips 66 (16th), 76 (17th), and Citgo (19th). Circle K’s ascent demonstrates its ability to compete with and surpass established competitors in the industry.
Transitioning Towards Exclusive Branding
For many years, Circle K has been a prominent player in gasoline sales nationwide, ranking second only to Shell. However, as a gas brand, Circle K fell behind due to the fact that some of its pumps dispensed major brand fuel, while other stations selling unbranded fuel did not actively promote Circle K as a fuel brand.
To overcome this challenge, Couche-Tard embarked on an aggressive rebranding strategy in 2018. The company piloted various concepts at gas islands in 2019, converting some locations from major brands to the proprietary Circle K Fuel brand. Additionally, brand elements at Circle K stores that were initially badged with major brands at the pump were modified to showcase the Circle K identity. Following these successful initiatives, in 2020, Couche-Tard launched a campaign to replace other fuel brands with its own.
The continuous efforts and strategic initiatives of Couche-Tard have undoubtedly paved the way for the remarkable growth and market share expansion of the Circle K Fuel brand in the U.S. gas brand industry. As the brand continues to solidify its presence, it is poised to make further advancements in the market in the coming years.
Couche-Tard’s Fuel Promotions Drive Growth and Customer Value
During the quarter ending July 23, Couche-Tard, a leading convenience store operator, showcased its proprietary fuel through a series of highly successful “fuel days” at more than 7,000 North American stores. These fuel events, including the recent Global Fuel Day held on August 31, have not only contributed to a significant increase in fuel volumes but have also enhanced the recognition of the Circle K Fuel brand. CEO Brian Hannasch stated during a September conference call that these promotions have provided substantial value to their customers.
Last year, Couche-Tard introduced “flash sales” to promote their Circle K Fuel brand, culminating in the declaration of Sept. 1 as “Circle K Fuel Day.” During this event, customers who purchased Circle K Fuel between 4 p.m. and 7 p.m. local time enjoyed an impressive 40 cents per gallon discount. Additionally, anyone waiting in line for gas before 7 p.m. received the same discount.
Circle K, in line with other major oil brands, also emphasizes the detergency of its premium gasoline. By exceeding federal government requirements, Circle K Premium Gasoline contains double the amount of cleaning detergents needed.
Furthermore, Couche-Tard has previously advertised special discounts on their Circle K Premium Gasoline, such as offering a 20 cents per gallon discount on Thursdays.