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LED Canopy Lighting – Energy Conservation that Looks Great LED is the newest wave in lighting technology and Pioneer is making the move. All new canopy installations will be done with LED lighting. The energy savings with LED are remarkable and with today’s environmental concerns, we’re all paying more attention to energy use. LED uses 65 – 70% less energy for canopy lighting than current fixtures. Add to that the extended life of an LED fixture – 13 years versus the current 3 to 4 years, and LED lighting represents a drastic reduction in maintenance. Yet, there are still more reasons for choosing LED for new installations. “LED lighting makes it easier to meet increasingly tough municipal lighting guidelines and dark sky regulations,” says Bob Reid, Director of Development and Construction. LED’s sophisticated directional capabilities helps to reduce “spillover” light, a growing concern that the dark sky movement is working to address. “LED is a different style of lighting. It gives a softer more pleasing brightness to the station. The focus becomes the pump itself rather than the entire station,” continues Bob. The safety and security for customers and employees is still there, yet the overall look is far more appealing and the product is more environmentally friendly. LSI Industries, the leader in petroleum- related lighting, is designing and supplying the canopy lighting for Pioneer’s sites under construction in Winnipeg, Whitby and Ottawa. Fall 2008 Every Litre Counts! Increase in Bonus Bucks Reward Schedule Testing Underway With the dramatic increase in street prices Pioneer is looking at new ways to offer customers greater value through our loyalty program. A trial of the proposed changes has been running at Windsor area sites throughout the summer. The promotion saw three significant changes to the Bonus Bucks reward schedule: 1. CUSTOMERS EARN MORE! 1 cent per litre on any purchase of Silver grade gas or diesel 2 cents per litre on any purchase of Gold grade gas 3 cents per litre on any purchase of Platinum grade gas 2. EVERY LITRE COUNTS! Rewards are given on every litre rather than according to 10L thresholds per the existing rewards schedule. For example the linear reward schedule would reward $0.18 in Bonus Bucks on an 18 litre purchase of Silver grade instead of $0.10. 3. NO MINIMUM PURCHASE REQUIRED! Since the thresholds have been eliminated, a customer can earn rewards on as little as 1 litre of gas purchased. Initial results are still under review as we have just added three more pilot sites in London and one in Niagara Falls and a final decision for roll out will be made later this Fall. Feed back from our Windsor pilot shows favourable customer acceptance and satisfaction with the program. Retailer ExPress
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Fall 2008 Increase in Bonus Bucks Reward Schedule Testing Underway With the dramatic increase in street prices Pioneer is looking at new ways to offer customers greater value through our loyalty program. A trial of the proposed changes has been running at Windsor area sites throughout the summer. The promotion saw three significant changes to the Bonus Bucks reward schedule:
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Page 1: 7_Pioneer_ExPress_Nov08

LED Canopy Lighting – Energy Conservation that Looks GreatLED is the newest wave in lighting technology and Pioneer is making the move. All new canopy installations will be done with LED lighting. The energy savings with LED are remarkable and with today’s environmental concerns, we’re all paying more attention to energy use.

LED uses 65 – 70% less energy for canopy lighting than current fixtures. Add to that the extended life of an LED fixture – 13 years versus the current 3 to 4 years, and LED lighting represents a drastic reduction in maintenance. Yet, there are still more reasons for choosing LED for new installations.

“LED lighting makes it easier to meet increasingly tough municipal lighting guidelines and dark sky regulations,” says Bob Reid, Director of Development and Construction. LED’s sophisticated directional capabilities helps to reduce “spillover” light, a growing concern that the dark sky movement is working to address. “LED is a different style of lighting. It gives a softer more pleasing brightness to the station. The focus becomes the pump itself rather than the entire station,” continues Bob. The safety and security for customers and employees is still there, yet the overall look is far more appealing and the product is more environmentally friendly.

LSI Industries, the leader in petroleum-related lighting, is designing and supplying the canopy lighting for Pioneer’s sites under construction in Winnipeg, Whitby and Ottawa.

Fall 2008

Every Litre Counts! Increase in Bonus Bucks Reward Schedule Testing Underway With the dramatic increase in street prices Pioneer is looking at new ways to offer customers greater value through our loyalty program. A trial of the proposed changes has been running at Windsor area sites throughout the summer. The promotion saw three significant changes to the Bonus Bucks reward schedule:

1. CUSTOMERS EARN MORE! 1 cent per litre on any purchase of Silver grade gas or diesel2 cents per litre on any purchase of Gold grade gas3 cents per litre on any purchase of Platinum grade gas

2. EVERY LITRE COUNTS!Rewards are given on every litre rather than according to 10L thresholds per the existing rewards schedule. For example the linear reward schedule would reward $0.18 in Bonus Bucks on an 18 litre purchase of Silver grade instead of $0.10.

3. NO MINIMUM PURCHASE REQUIRED!Since the thresholds have been eliminated, a customer can earn rewards on as little as 1 litre of gas purchased.

Initial results are still under review as we have just added three more pilot sites in London and one in Niagara Falls and a final decision for roll out will be made later this Fall. Feed back from our Windsor pilot shows favourable customer acceptance and satisfaction with the program.

RetailerExPress

Retailer Express Fall 2008

The Retailer ExPressFall 2008 editionA publication for Pioneer Retailers and Head Office employees.

Editor: Geoff Hogarth [email protected]

Assistant Editors: Kim Hoang [email protected]

Wendy Eveleigh [email protected]

Tel: (905) 639-2060 Fax (905) 639-2490

© 2008 Pioneer Petroleums. All rights reserved.

www.pioneer.ca

A special featured article in the National Post on August 5, 2008.

Coast to Coast Cyclists blogs about Pioneer HospitalityWhen cyclist Elizabeth McIlroy and her sister set out one Sunday last May on a training ride for a coast to coast cycling event, they never imagined how grateful they would be to see a Pioneer station through the rain. They were well into their ride from Etobicoke to

Niagara when the weather turned rainy, windy and cold. Finding nowhere to stop for another 40 to 50 kilometers, they persevered.

“Finally, we saw the signage for the Pioneer Petroleums in Pelham (Hwy. 24) and headed right in,” said Elizabeth who was training for the Sears National Kids Cancer Ride at the time. Two others cyclists were drying off and warming up

inside. “Introductions were made, a photo was taken and we were all treated to the hospitality of Pioneer’s Bruce Jeffrey,” says Elizabeth who included a thank you to Pioneer and photos of Bruce on her blog (2008.snkcr.com/elizabeth/). Elizabeth successfully completed the 19-day, 7600 km Kids Cancer ride in June.

www.pioneer.ca

Spin to Win!Pioneer now has an exciting new promotional tool that can be used at grand openings and site redevelopments to attract new customers and encourages repeat businesses. In fact Pioneer’s new Spin to Win game has been designed in two versions so that it can be used at large public events as well as at Pioneer sites.

The game is an adaptation of the traditional crown and anchor wheel where the player “spins” the wheel to win prizes. The physical version of the game is ideal for attracting attention and building brand awareness at large gatherings. It’s currently a popular attraction at Hamilton Tiger-Cats pregame shows and later this year it will appear at Hamilton Bulldog games and at Ontario University Athletics Association events across Ontario. The digital version of the game is compact and easily transported -- perfect for use on-site at Pioneer stations.

Prior to a site event featuring Spin to Win, a mail drop is sent to area households to build awareness for the new or redeveloped site and to spark interest in the contest. Both Site 169 in London and Site 167 in Scarborough featured Spin to Win to celebrate their grand reopening. During the promotion, area people are encouraged to visit and “spin” for prizes using the entry code on the mailer. The game, set-up on a laptop “spins” a digital version of the wheel and prints a prize voucher. With lots of prizes from snack items to gift cards, many customers are winners on the spot!

Sample of Spin to Win

promo mailer

Enviro-friendly Car Wash Soaps Do you know that Pioneer’s car wash soaps are environmentally friendly? “Our soaps are biodegradable and don’t contain phosphates,” says Mike Dietrich, Manager of Car Wash Operations & Facilities Maintenance. Pioneer’s soap provider, Mondo Products, was the first manufacturer of vehicle washing products to carry the EcoLogo certification.

EcoLogo products are certified by an independent company to be the most environmentally friendly products on the market. EcoLogo is a program of Environment Canada and is the oldest “green” certification organization in North America.

Cyclist Elizabeth McIlroy (on right) and sister Patty with Bruce Jeffrey at Site 237.

In an industry dominated by corporate giants, independ-ent gas retailer Pioneer Petrol-eums exemplifies the remark-able achievements attainableby a smaller enterprise that ismanaged with excellence.

Founded in 1956 by Pion-eer’s chairman Murray Ho-garth with a single gas station,the company now has 150 Pi-oneer-branded stations. It is one of the largest independent gas retailers in Canada andthe largest in Ontario.

As if pumping approximate-ly 1.4 billion litres of fuel tocustomers each year was notimpressive enough, Pioneeralso operates more than 100SnackExpress conveniencestores with fast-food offer-ings in partnership with suchmajor names as Tim Hortons,Country Style, Mr. Sub andWilliams Coffee Pubs.

The Burlington, Ont.-basedcompany — a Best Managedwinner since 2000 and a Plat-inum Club member since 2006— is also an inspirational rolemodel for the newer kids onthe business block, illustratinghow a tenacious entrepreneur-ial spirit can lead a company through tumultuous industry,market and economic changes decade after decade.

At 52 years of age — which,in company years, could beconsidered downright senior— Pioneer continues to havethe vitality, ambition, agil-ity and innovation of a youngentrepreneurial enterprisebacked by a solid, experiencedoperating approach, thoroughmarket knowledge and loyaland committed people at alllevels of the organization.

“We have been aggressiveat reinvesting a significant percentage of our earningsannually back into the busi-ness, to ensure that our sitesare competitive from a facility and offering perspective,” saysTim Hogarth, the company’spresident and CEO, and son ofthe founder.

“We’re proactive in drivingthe business forward in what we see is right for the businessand right for our customersand the community.”

Innovative Pioneer is con-stantly striving to improve andfind creative and better ways to add value to its custom-ers’ experience. Pioneer wasthe first to open a fully auto-matic car wash in Canada andamong the first to introduceautomated pump nozzles, aswell as pump island canopies.The company was also the firstretailer in Canada to offer pri-vate-label automatic bankingmachines on its premises.

Guided by its pursuit of thecustomer’s happiness, Pioneerregularly conducts qualita-tive and quantitative researchon its customers’ needs andwants and adjusts its businessmodel to seize the opportun-ities identified by the researchtrends.

That’s why this go-getter

independent has a long hist-ory of repeatedly being thefirst in launching innovativeofferings, leading the way inan industry that is dominatedby the major oil companies.

In the 1990s, Pioneer’s research noted the rushed,increased demands of mod-ern life faced by its customers. So in 1997, it invested heav-ily in expanding its sites andlaunched the SnackExpressstores.

“Our customers have re-warded us and returned theirpatronage by being loyal. As a result, Pioneer enjoys someof the highest average sitethroughputs of any petroleumretail chain in the country,”Mr. Hogarth says.

Pioneer has been rewardingits customers since the 1960s with S&M green stamps ,followed by Pioneer money and now Pioneer Bonus Bucks,one of the longest-runningloyalty programs in the in-dustry. However, that, too, hasevolved to reflect the times,and last year the programwent paperless, switchingsuccessfully to the ElectronicBonus Bucks card.

But far from resting on itslaurels, Pioneer continuesto introduce new services,launching an auto roadsideassistance program this falland looking at adding finan-cial services — including trav-el and medical insurance — toits list of offerings.

Pioneer is also in the midst of planning a revolution to thegas/convenience experience,looking to make changes that will address everything fromthe challenges of a highlycompetitive market to theincreasingly time-pressuredcustomers’ needs. Pioneeris thinking big and continu-ing to be a leading petroleumretail innovator in Canada.

The company’s dedicationto growth through a low-cost,value added customer ex-perience has been pivotal inPioneer’s ability to success-fully compete in an industrywhere independents have his-torically operated on extreme-ly narrow profit margins.

“The reality is that wepurchase our product fromthe major oil company refin-ers but, at the same time, wecompete with them acrossthe street in the same market-place, and we do all of that fora thin 5% gross margin,” Mr. Hogarth says.

Meticulous efficiency hasbeen key to keeping costs downfor the company and consum-ers. “We have been aggres-sive in how we streamline thetail end of our network. We’renot so much interested inthe number of locations as inensuring that we have highlyefficient and competitive loca-tions,” he says.

Through the acquisition ofother smaller independent re-tailers over the years, Pioneeris not just one of the best-man-

aged companies in the coun-try, it is also one of the most well-rounded ones — know-ing how to take advantage not just of new technologies andmarket opportunities but alsoexcelling in forming alliancesand partnerships.

“A bold move we commit-ted to in 1993 was altering ourownership structure througha joint venture partnershipwith Suncor Energy Prod-ucts Inc.,” Mr. Hogarth says.“There was a lot of consolida-tion in the refining industry at the time and the joint venturewith Suncor gave us access toa secure and quality source ofsupply, and also enabled us tomanage a good percentage ofSunoco’s retail network.”

Pioneer also entered intoa strategic arrangement withImperial Oil in 2004, becom-ing its retail branded distribu-tor for Esso in northeasternOntario and all of Manitoba.

Additionally, Pioneer acquiredImperial-owned and con-trolled locations in marketssuch as Winnipeg, which itcontinues to operate as Essostations.

“In many ways, we’re a pet-roleum management com-

pany that has evolved into aconvenience retail company,”says Jack Theriault, Pioneer’s senior vice-president of salesand marketing.

“We have our own brandbut we adapt those same skillsthat have made us successful

with our brand and spreadthem to other opportunities like Sunoco and Esso. We’vesuccessfully been able totake on the management of135 Sunoco sites over a two-month period in late 1993, andover the past three years we’vedone the same with 100 Essodealer-contracted locations,successfully managing themwith very few resources.”

And so it is no surprise that this well-rounded company,which donates 1% of its earn-ings each year to charities,has been recognized year after year as one of Canada’s Best Managed companies.

“Participating in the pro-gram has allowed Pioneer toreally focus on and articulateour best practices and focus more on where it is we wantto take this business and how we want to grow,” Mr. Hogarthsays. “There’s a sense of prideand positive energy that is in-

stilled in everything we do as aresult of being associated withthe Best Managed program.”

“Pioneer Petroleum’s con-tinued success in a difficult market is a testament to itscommitment to innovationand emphasizing the import-ance of satisfying its custom-ers,” says Gordon Fisher,publisher of National Post. “Pioneer is also a fine exampleof the type of company that isrecognized by the Best Man-aged program: One that con-tinues to evolve and improvewhile maintaining its coreprinciples.”

To find out how the Best Managed program can helpyour private company, visitwww.canadas50best.com.

And to get up close and per-sonal with Best Managed com-panies, stay tuned to this pagefor upcoming profiles of past winners, their best practices and lessons learned.

B E S T MAN AG EDA J O I N T V E N T U R E W I T H C A N A D A ’ S 5 0 B E S T M A N A G E D C O M P A N I E S P R O G R A M

S P E C I A L F E A T U R E T O T H E N A T I O N A L P O S T

Titan in a landof industy giants

TimHogarth, left, Pioneer Petroleum’s CEO, and Pioneer founder and chairmanMurray Hogarth, say the company’s focuson innovation has provided new business opportunities.

We adapt ourskills and spread

them to otheropportunities

www.pioneer.ca

Points are pointless. Bonus Bucks are better.TM

As Ontario’s largest independent petroleum retailerPioneer Petroleums consistently strives to provideexceptional value, unparalleled service and a host ofconsumer-driven programs. The result is a compellingoffer and a company we’re all very proud of.

The true spirit of a Pioneer.

Page 2: 7_Pioneer_ExPress_Nov08

LED Canopy Lighting – Energy Conservation that Looks GreatLED is the newest wave in lighting technology and Pioneer is making the move. All new canopy installations will be done with LED lighting. The energy savings with LED are remarkable and with today’s environmental concerns, we’re all paying more attention to energy use.

LED uses 65 – 70% less energy for canopy lighting than current fixtures. Add to that the extended life of an LED fixture – 13 years versus the current 3 to 4 years, and LED lighting represents a drastic reduction in maintenance. Yet, there are still more reasons for choosing LED for new installations.

“LED lighting makes it easier to meet increasingly tough municipal lighting guidelines and dark sky regulations,” says Bob Reid, Director of Development and Construction. LED’s sophisticated directional capabilities helps to reduce “spillover” light, a growing concern that the dark sky movement is working to address. “LED is a different style of lighting. It gives a softer more pleasing brightness to the station. The focus becomes the pump itself rather than the entire station,” continues Bob. The safety and security for customers and employees is still there, yet the overall look is far more appealing and the product is more environmentally friendly.

LSI Industries, the leader in petroleum-related lighting, is designing and supplying the canopy lighting for Pioneer’s sites under construction in Winnipeg, Whitby and Ottawa.

Fall 2008

Every Litre Counts! Increase in Bonus Bucks Reward Schedule Testing Underway With the dramatic increase in street prices Pioneer is looking at new ways to offer customers greater value through our loyalty program. A trial of the proposed changes has been running at Windsor area sites throughout the summer. The promotion saw three significant changes to the Bonus Bucks reward schedule:

1. CUSTOMERS EARN MORE! 1 cent per litre on any purchase of Silver grade gas or diesel2 cents per litre on any purchase of Gold grade gas3 cents per litre on any purchase of Platinum grade gas

2. EVERY LITRE COUNTS!Rewards are given on every litre rather than according to 10L thresholds per the existing rewards schedule. For example the linear reward schedule would reward $0.18 in Bonus Bucks on an 18 litre purchase of Silver grade instead of $0.10.

3. NO MINIMUM PURCHASE REQUIRED!Since the thresholds have been eliminated, a customer can earn rewards on as little as 1 litre of gas purchased.

Initial results are still under review as we have just added three more pilot sites in London and one in Niagara Falls and a final decision for roll out will be made later this Fall. Feed back from our Windsor pilot shows favourable customer acceptance and satisfaction with the program.

RetailerExPress

Retailer Express Fall 2008

The Retailer ExPressFall 2008 editionA publication for Pioneer Retailers and Head Office employees.

Editor: Geoff Hogarth [email protected]

Assistant Editors: Kim Hoang [email protected]

Wendy Eveleigh [email protected]

Tel: (905) 639-2060 Fax (905) 639-2490

© 2008 Pioneer Petroleums. All rights reserved.

www.pioneer.ca

A special featured article in the National Post on August 5, 2008.

Coast to Coast Cyclists blogs about Pioneer HospitalityWhen cyclist Elizabeth McIlroy and her sister set out one Sunday last May on a training ride for a coast to coast cycling event, they never imagined how grateful they would be to see a Pioneer station through the rain. They were well into their ride from Etobicoke to

Niagara when the weather turned rainy, windy and cold. Finding nowhere to stop for another 40 to 50 kilometers, they persevered.

“Finally, we saw the signage for the Pioneer Petroleums in Pelham (Hwy. 24) and headed right in,” said Elizabeth who was training for the Sears National Kids Cancer Ride at the time. Two others cyclists were drying off and warming up

inside. “Introductions were made, a photo was taken and we were all treated to the hospitality of Pioneer’s Bruce Jeffrey,” says Elizabeth who included a thank you to Pioneer and photos of Bruce on her blog (2008.snkcr.com/elizabeth/). Elizabeth successfully completed the 19-day, 7600 km Kids Cancer ride in June.

www.pioneer.ca

Spin to Win!Pioneer now has an exciting new promotional tool that can be used at grand openings and site redevelopments to attract new customers and encourages repeat businesses. In fact Pioneer’s new Spin to Win game has been designed in two versions so that it can be used at large public events as well as at Pioneer sites.

The game is an adaptation of the traditional crown and anchor wheel where the player “spins” the wheel to win prizes. The physical version of the game is ideal for attracting attention and building brand awareness at large gatherings. It’s currently a popular attraction at Hamilton Tiger-Cats pregame shows and later this year it will appear at Hamilton Bulldog games and at Ontario University Athletics Association events across Ontario. The digital version of the game is compact and easily transported -- perfect for use on-site at Pioneer stations.

Prior to a site event featuring Spin to Win, a mail drop is sent to area households to build awareness for the new or redeveloped site and to spark interest in the contest. Both Site 169 in London and Site 167 in Scarborough featured Spin to Win to celebrate their grand reopening. During the promotion, area people are encouraged to visit and “spin” for prizes using the entry code on the mailer. The game, set-up on a laptop “spins” a digital version of the wheel and prints a prize voucher. With lots of prizes from snack items to gift cards, many customers are winners on the spot!

Sample of Spin to Win

promo mailer

Enviro-friendly Car Wash Soaps Do you know that Pioneer’s car wash soaps are environmentally friendly? “Our soaps are biodegradable and don’t contain phosphates,” says Mike Dietrich, Manager of Car Wash Operations & Facilities Maintenance. Pioneer’s soap provider, Mondo Products, was the first manufacturer of vehicle washing products to carry the EcoLogo certification.

EcoLogo products are certified by an independent company to be the most environmentally friendly products on the market. EcoLogo is a program of Environment Canada and is the oldest “green” certification organization in North America.

Cyclist Elizabeth McIlroy (on right) and sister Patty with Bruce Jeffrey at Site 237.

In an industry dominated by corporate giants, independ-ent gas retailer Pioneer Petrol-eums exemplifies the remark-able achievements attainableby a smaller enterprise that ismanaged with excellence.

Founded in 1956 by Pion-eer’s chairman Murray Ho-garth with a single gas station,the company now has 150 Pi-oneer-branded stations. It is one of the largest independent gas retailers in Canada andthe largest in Ontario.

As if pumping approximate-ly 1.4 billion litres of fuel tocustomers each year was notimpressive enough, Pioneeralso operates more than 100SnackExpress conveniencestores with fast-food offer-ings in partnership with suchmajor names as Tim Hortons,Country Style, Mr. Sub andWilliams Coffee Pubs.

The Burlington, Ont.-basedcompany — a Best Managedwinner since 2000 and a Plat-inum Club member since 2006— is also an inspirational rolemodel for the newer kids onthe business block, illustratinghow a tenacious entrepreneur-ial spirit can lead a company through tumultuous industry,market and economic changes decade after decade.

At 52 years of age — which,in company years, could beconsidered downright senior— Pioneer continues to havethe vitality, ambition, agil-ity and innovation of a youngentrepreneurial enterprisebacked by a solid, experiencedoperating approach, thoroughmarket knowledge and loyaland committed people at alllevels of the organization.

“We have been aggressiveat reinvesting a significant percentage of our earningsannually back into the busi-ness, to ensure that our sitesare competitive from a facility and offering perspective,” saysTim Hogarth, the company’spresident and CEO, and son ofthe founder.

“We’re proactive in drivingthe business forward in what we see is right for the businessand right for our customersand the community.”

Innovative Pioneer is con-stantly striving to improve andfind creative and better ways to add value to its custom-ers’ experience. Pioneer wasthe first to open a fully auto-matic car wash in Canada andamong the first to introduceautomated pump nozzles, aswell as pump island canopies.The company was also the firstretailer in Canada to offer pri-vate-label automatic bankingmachines on its premises.

Guided by its pursuit of thecustomer’s happiness, Pioneerregularly conducts qualita-tive and quantitative researchon its customers’ needs andwants and adjusts its businessmodel to seize the opportun-ities identified by the researchtrends.

That’s why this go-getter

independent has a long hist-ory of repeatedly being thefirst in launching innovativeofferings, leading the way inan industry that is dominatedby the major oil companies.

In the 1990s, Pioneer’s research noted the rushed,increased demands of mod-ern life faced by its customers. So in 1997, it invested heav-ily in expanding its sites andlaunched the SnackExpressstores.

“Our customers have re-warded us and returned theirpatronage by being loyal. As a result, Pioneer enjoys someof the highest average sitethroughputs of any petroleumretail chain in the country,”Mr. Hogarth says.

Pioneer has been rewardingits customers since the 1960s with S&M green stamps ,followed by Pioneer money and now Pioneer Bonus Bucks,one of the longest-runningloyalty programs in the in-dustry. However, that, too, hasevolved to reflect the times,and last year the programwent paperless, switchingsuccessfully to the ElectronicBonus Bucks card.

But far from resting on itslaurels, Pioneer continuesto introduce new services,launching an auto roadsideassistance program this falland looking at adding finan-cial services — including trav-el and medical insurance — toits list of offerings.

Pioneer is also in the midst of planning a revolution to thegas/convenience experience,looking to make changes that will address everything fromthe challenges of a highlycompetitive market to theincreasingly time-pressuredcustomers’ needs. Pioneeris thinking big and continu-ing to be a leading petroleumretail innovator in Canada.

The company’s dedicationto growth through a low-cost,value added customer ex-perience has been pivotal inPioneer’s ability to success-fully compete in an industrywhere independents have his-torically operated on extreme-ly narrow profit margins.

“The reality is that wepurchase our product fromthe major oil company refin-ers but, at the same time, wecompete with them acrossthe street in the same market-place, and we do all of that fora thin 5% gross margin,” Mr. Hogarth says.

Meticulous efficiency hasbeen key to keeping costs downfor the company and consum-ers. “We have been aggres-sive in how we streamline thetail end of our network. We’renot so much interested inthe number of locations as inensuring that we have highlyefficient and competitive loca-tions,” he says.

Through the acquisition ofother smaller independent re-tailers over the years, Pioneeris not just one of the best-man-

aged companies in the coun-try, it is also one of the most well-rounded ones — know-ing how to take advantage not just of new technologies andmarket opportunities but alsoexcelling in forming alliancesand partnerships.

“A bold move we commit-ted to in 1993 was altering ourownership structure througha joint venture partnershipwith Suncor Energy Prod-ucts Inc.,” Mr. Hogarth says.“There was a lot of consolida-tion in the refining industry at the time and the joint venturewith Suncor gave us access toa secure and quality source ofsupply, and also enabled us tomanage a good percentage ofSunoco’s retail network.”

Pioneer also entered intoa strategic arrangement withImperial Oil in 2004, becom-ing its retail branded distribu-tor for Esso in northeasternOntario and all of Manitoba.

Additionally, Pioneer acquiredImperial-owned and con-trolled locations in marketssuch as Winnipeg, which itcontinues to operate as Essostations.

“In many ways, we’re a pet-roleum management com-

pany that has evolved into aconvenience retail company,”says Jack Theriault, Pioneer’s senior vice-president of salesand marketing.

“We have our own brandbut we adapt those same skillsthat have made us successful

with our brand and spreadthem to other opportunities like Sunoco and Esso. We’vesuccessfully been able totake on the management of135 Sunoco sites over a two-month period in late 1993, andover the past three years we’vedone the same with 100 Essodealer-contracted locations,successfully managing themwith very few resources.”

And so it is no surprise that this well-rounded company,which donates 1% of its earn-ings each year to charities,has been recognized year after year as one of Canada’s Best Managed companies.

“Participating in the pro-gram has allowed Pioneer toreally focus on and articulateour best practices and focus more on where it is we wantto take this business and how we want to grow,” Mr. Hogarthsays. “There’s a sense of prideand positive energy that is in-

stilled in everything we do as aresult of being associated withthe Best Managed program.”

“Pioneer Petroleum’s con-tinued success in a difficult market is a testament to itscommitment to innovationand emphasizing the import-ance of satisfying its custom-ers,” says Gordon Fisher,publisher of National Post. “Pioneer is also a fine exampleof the type of company that isrecognized by the Best Man-aged program: One that con-tinues to evolve and improvewhile maintaining its coreprinciples.”

To find out how the Best Managed program can helpyour private company, visitwww.canadas50best.com.

And to get up close and per-sonal with Best Managed com-panies, stay tuned to this pagefor upcoming profiles of past winners, their best practices and lessons learned.

B E S T MAN AG EDA J O I N T V E N T U R E W I T H C A N A D A ’ S 5 0 B E S T M A N A G E D C O M P A N I E S P R O G R A M

S P E C I A L F E A T U R E T O T H E N A T I O N A L P O S T

Titan in a landof industy giants

TimHogarth, left, Pioneer Petroleum’s CEO, and Pioneer founder and chairmanMurray Hogarth, say the company’s focuson innovation has provided new business opportunities.

We adapt ourskills and spread

them to otheropportunities

www.pioneer.ca

Points are pointless. Bonus Bucks are better.TM

As Ontario’s largest independent petroleum retailerPioneer Petroleums consistently strives to provideexceptional value, unparalleled service and a host ofconsumer-driven programs. The result is a compellingoffer and a company we’re all very proud of.

The true spirit of a Pioneer.

Page 3: 7_Pioneer_ExPress_Nov08

Identifying and Deterring Drive-offs at Sites 234 & 21After a rash of drive-offs in late summer 2007, Site 234, 16th Street East in Owen Sound has not had any true drive-offs so far this year. Site operator Rod Holmes used surveillance photos posted on his front door to capture a culprit and deter others from driving off.

Frustrated by a drive-off by a vehicle without a plate, Rod asked police if he could post photos of the man and his vehicle to see if his customers could identify him. Police advised that posting photos was okay but not to make any reference as to why the person was being sought. Rod’s colour photos, with the caption “Do you know this man?” lead to the identification of the man who was charged and later convicted of theft.

Although it took several months to catch the man, that lengthy delay may have worked to the site’s advantage. During that period, Rod continued to display the photos, even adding a man who had stolen a bundle of hockey cards for all to see. “Even once we knew their names, we left the signs up,” says Rod. “In all they were up for several months and we haven’t had a true drive-off since.”

Fred Brown at Site 21, Wayne Gretzky Drive in Brantford also used this technique after being hit by a drive-off, also without plates. In this case Fred sent the photos to local Pioneer sites via email and a customer on the other side of town identified the man. The information was passed on to police and the man confessed. “These are great tools,” says Fred of the technology. “I can share the information with other agents in the network right away.”

At the Brantford site the busy afternoon shift is the highest risk period for drive-offs. “People looking for the opportunity will always look our way before jumping in their vehicle to see if we’re watching,” says Fred. The quickest way to diffuse a drive-off is to make eye contact with each and every customer,” he maintains. “It’s not a perfect system, but you are making them aware that you are watching.” Usually that is all it takes to prevent the occurrence. Fred reviews surveillance tapes of every drive-off with staff to see the exact moment it might have been prevented. “Every drive-off is a training tool,” says Fred.

Retailer Express Fall 2008

Pioneer Acquires Nine Winnipeg SitesPioneer Petroleums, recently acquired nine Esso-owned properties in Winnipeg and plans are underway to boost the image and presence of these sites in the marketplace. Pioneer is the Retail Branded Distributor (RBD) for approximately 70 dealer owned Esso stations in Manitoba.

Pioneer will upgrade the existing convenience offering by introducing the Esso On the Run program at six of these locations. Tim Hortons will be added at five of the sites, three in drive thru formats and two as self-serve walk-ups. “With these changes we’ll be able to substantially raise the profile of the Esso brand in the Winnipeg market,” says Jack Theriault, Senior Vice President of Sales and Marketing.

Congratulations to Site 38 on Rymal Road in Hamilton for selling an “Ontario Instant Millions” winning ticket.

Twenty year-old John Yacou became a millionaire on August 18th. He plans to share his windfall with his family here in Canada as well as send some money to relatives in Iraq.

Pioneer’s Julia Dickenson was interviewed for local television coverage.

It should be noted that $1000 dollars is also awarded to the retailer who issued the winning ticket.

Pioneer Gets Kids Out During Family Fishing Weekend

For the fourth year Pioneer Petroleums along with Bob Izumi’s Real Fishing Show and Laidlaw Transport have sponsored a fishing day for kids on Lake L’Amable, South of Bancroft. The event is for

young boys and girls who otherwise wouldn’t get to participate during Ontario’s Family Fishing Weekend when a fishing license is not required.

This year 45 children fished for rock bass but a total of 60 children, aged 4 – 12, participated in the full-day event, which includes a fish dinner and grab bags for the kids. “Pioneer makes sure every kid goes home with something,” says long-term associate Herb Schulte who has been with Pioneer for 41 years.

Herb Schulte (on right), is shown above with some of the children

and event organizer Dean Nadon.

Pioneer Welcomes New Director of Merchandising After a lengthy search, Pioneer was pleased to welcome Anthony Di Maulo in May as the new Director of Merchandising. Anthony comes to Pioneer with a wealth of experience, most recently as Procurement Director Private Label – National Merchandising at Sobeys Inc. “Anthony comes across as high energy, ambitious, focused and accomplished merchandising executive, who will no doubt be a strong new asset to the team” says Tim Hogarth, President and CEO of Pioneer Petroleums.

“It became necessary to have an individual who could focus entirely on directing and managing the merchandising activities full time. And also Anthony will be in charge of our new XRO (Expanded Retail Offer)/Snack Express store design,” adds Dave MacFarlane who is relinquishing his marketing and merchandising responsibilities to return to the VP Real Estate and Development role in order to capitalize on current opportunities for growing Pioneer. “Anthony brings new energy and a different perspective that puts him in a good position to challenge some of our conventions,” says Dave. Anthony’s experience also includes a decade with Canadian Tire Corporation in their Retail and Petroleum divisions. Welcome aboard Anthony!

OFAH Membership Gets Boost from PioneerFish and wildlife weren’t the only winners in the Ontario Federation of Anglers and Hunters membership drive that kicked off last winter and continued into the spring. Every new OFAH member registering during the

Pioneer-sponsored membership drive received a $25 Pioneer Gift Card encouraging new or repeat patronage for Pioneer stations across the province. New members were also entered into a draw to win the Grand Prize – $1000 in Pioneer gift cards or one of five $100 Pioneer gift cards.

“This promotion was one of our most successful direct mail campaigns in years,” says the Ontario Federation of Anglers and Hunters’ Robert Pye. “It was a great success for Pioneer and a great success for the OFAH.”

The OFAH, one of Canada’s leading environmental organizations, helps save and improve precious woodland and wetland habitat, conserve fish and wildlife species, and promote outdoor education.

Grand Prize winner Russel Jubenville (right) picking up his prize from Mike Spolarich, District Manager for SW Ontario, at Site 232 in Tecumseh, Ontario.

Pembina and Edderton in Winnipeg, Manitoba

Printing Goes GREEN at Head OfficePioneer Petroleums is now using the greenest technology available for head office printing. Selected for its nearly waste-free printing process and toxin-free ink stick, the Xerox Phaser 8860 is our best choice for environmentally friendly printing.

This new printer generates 90% less waste than a typical colour laser product. How does it achieve this? First, it transfers nearly 100% of the ink to the paper unlike conventional printers which leave residual material behind in a waste container after every printing. Secondly, it uses safe, toxin-free solid ink sticks rather than cartridges. The ink stick cannibalizes itself so there is nothing left to throw away when it is finished – no bulky cartridges remain.

The bottom line? For every 100,000 printed pages, a solid ink printer generates approximately 5 lbs. of landfill waste compared to approximately 157 lbs. for a typical colour laser.

Thanks to All for Tobacco Dark Wall EffortsPioneer’s implementation of the government mandated Tobacco Dark Wall went off seamlessly on May 31st thanks to everyone in the field. “Without the District Managers and Retailers, it simply wouldn’t have been possible to meet the requirements by May 31st,” says Mike Dietrich, Manager of Carwash Operations and Facilities Maintenance. “I definitely want to put a huge thank you out to them and to Dan Edwards in the warehouse for all their work.”

Since the legislation mandates that only one flap be opened at a time for brief periods, this area offers a great opportunity as marketing space. “It’s a more attractive and usable surface for Bonus Bucks messaging and vendor features,” says Anthony Di Maulo, Director of Merchandising. POP display solutions for the back wall systems are being developed and should launch at sites later this fall.

Although it is too soon to know the full impact of the new dark wall legislation at Pioneer sites, early results suggest that tobacco sales have not been significantly impacted by the change.

New Micro-Fibre Uniform Shirts You asked for a lighter-weight uniform shirt and we went one better. Pioneer’s new uniform shirt is made of micro-fibre. Not only is micro-fibre light-weight but it whisks moisture away from the body keeping you more comfortable while you work.

“Approximately 500 shirts are already in use in the field,” says Dan Edwards, Pioneer Warehouse Manager. “These shirts were brought in sooner than we would normally implement a change, so stations are being given a longer period to change over,” says Dan. Sites will have until May 2009 to implement the new shirt program.

Pioneer recently put out-dated inventory to good use by donating $20,000 in surplus, logoless spring jackets to the St. Simon’s Shelter in downtown Toronto. “Upon intake many of the people we see don’t have socks or underwear never mind a seasonal jacket,” explains Bob Duff, the shelter’s Executive Director. “ Having an adequate jacket to go to an interview with can make the difference between being turned away or landing a job. This gift helps people in ways that you can’t imagine,” insists Duff. “They’re beautiful jackets and extremely beneficial.”

www.pioneer.ca

Page 4: 7_Pioneer_ExPress_Nov08

Identifying and Deterring Drive-offs at Sites 234 & 21After a rash of drive-offs in late summer 2007, Site 234, 16th Street East in Owen Sound has not had any true drive-offs so far this year. Site operator Rod Holmes used surveillance photos posted on his front door to capture a culprit and deter others from driving off.

Frustrated by a drive-off by a vehicle without a plate, Rod asked police if he could post photos of the man and his vehicle to see if his customers could identify him. Police advised that posting photos was okay but not to make any reference as to why the person was being sought. Rod’s colour photos, with the caption “Do you know this man?” lead to the identification of the man who was charged and later convicted of theft.

Although it took several months to catch the man, that lengthy delay may have worked to the site’s advantage. During that period, Rod continued to display the photos, even adding a man who had stolen a bundle of hockey cards for all to see. “Even once we knew their names, we left the signs up,” says Rod. “In all they were up for several months and we haven’t had a true drive-off since.”

Fred Brown at Site 21, Wayne Gretzky Drive in Brantford also used this technique after being hit by a drive-off, also without plates. In this case Fred sent the photos to local Pioneer sites via email and a customer on the other side of town identified the man. The information was passed on to police and the man confessed. “These are great tools,” says Fred of the technology. “I can share the information with other agents in the network right away.”

At the Brantford site the busy afternoon shift is the highest risk period for drive-offs. “People looking for the opportunity will always look our way before jumping in their vehicle to see if we’re watching,” says Fred. The quickest way to diffuse a drive-off is to make eye contact with each and every customer,” he maintains. “It’s not a perfect system, but you are making them aware that you are watching.” Usually that is all it takes to prevent the occurrence. Fred reviews surveillance tapes of every drive-off with staff to see the exact moment it might have been prevented. “Every drive-off is a training tool,” says Fred.

Retailer Express Fall 2008

Pioneer Acquires Nine Winnipeg SitesPioneer Petroleums, recently acquired nine Esso-owned properties in Winnipeg and plans are underway to boost the image and presence of these sites in the marketplace. Pioneer is the Retail Branded Distributor (RBD) for approximately 70 dealer owned Esso stations in Manitoba.

Pioneer will upgrade the existing convenience offering by introducing the Esso On the Run program at six of these locations. Tim Hortons will be added at five of the sites, three in drive thru formats and two as self-serve walk-ups. “With these changes we’ll be able to substantially raise the profile of the Esso brand in the Winnipeg market,” says Jack Theriault, Senior Vice President of Sales and Marketing.

Congratulations to Site 38 on Rymal Road in Hamilton for selling an “Ontario Instant Millions” winning ticket.

Twenty year-old John Yacou became a millionaire on August 18th. He plans to share his windfall with his family here in Canada as well as send some money to relatives in Iraq.

Pioneer’s Julia Dickenson was interviewed for local television coverage.

It should be noted that $1000 dollars is also awarded to the retailer who issued the winning ticket.

Pioneer Gets Kids Out During Family Fishing Weekend

For the fourth year Pioneer Petroleums along with Bob Izumi’s Real Fishing Show and Laidlaw Transport have sponsored a fishing day for kids on Lake L’Amable, South of Bancroft. The event is for

young boys and girls who otherwise wouldn’t get to participate during Ontario’s Family Fishing Weekend when a fishing license is not required.

This year 45 children fished for rock bass but a total of 60 children, aged 4 – 12, participated in the full-day event, which includes a fish dinner and grab bags for the kids. “Pioneer makes sure every kid goes home with something,” says long-term associate Herb Schulte who has been with Pioneer for 41 years.

Herb Schulte (on right), is shown above with some of the children

and event organizer Dean Nadon.

Pioneer Welcomes New Director of Merchandising After a lengthy search, Pioneer was pleased to welcome Anthony Di Maulo in May as the new Director of Merchandising. Anthony comes to Pioneer with a wealth of experience, most recently as Procurement Director Private Label – National Merchandising at Sobeys Inc. “Anthony comes across as high energy, ambitious, focused and accomplished merchandising executive, who will no doubt be a strong new asset to the team” says Tim Hogarth, President and CEO of Pioneer Petroleums.

“It became necessary to have an individual who could focus entirely on directing and managing the merchandising activities full time. And also Anthony will be in charge of our new XRO (Expanded Retail Offer)/Snack Express store design,” adds Dave MacFarlane who is relinquishing his marketing and merchandising responsibilities to return to the VP Real Estate and Development role in order to capitalize on current opportunities for growing Pioneer. “Anthony brings new energy and a different perspective that puts him in a good position to challenge some of our conventions,” says Dave. Anthony’s experience also includes a decade with Canadian Tire Corporation in their Retail and Petroleum divisions. Welcome aboard Anthony!

OFAH Membership Gets Boost from PioneerFish and wildlife weren’t the only winners in the Ontario Federation of Anglers and Hunters membership drive that kicked off last winter and continued into the spring. Every new OFAH member registering during the

Pioneer-sponsored membership drive received a $25 Pioneer Gift Card encouraging new or repeat patronage for Pioneer stations across the province. New members were also entered into a draw to win the Grand Prize – $1000 in Pioneer gift cards or one of five $100 Pioneer gift cards.

“This promotion was one of our most successful direct mail campaigns in years,” says the Ontario Federation of Anglers and Hunters’ Robert Pye. “It was a great success for Pioneer and a great success for the OFAH.”

The OFAH, one of Canada’s leading environmental organizations, helps save and improve precious woodland and wetland habitat, conserve fish and wildlife species, and promote outdoor education.

Grand Prize winner Russel Jubenville (right) picking up his prize from Mike Spolarich, District Manager for SW Ontario, at Site 232 in Tecumseh, Ontario.

Pembina and Edderton in Winnipeg, Manitoba

Printing Goes GREEN at Head OfficePioneer Petroleums is now using the greenest technology available for head office printing. Selected for its nearly waste-free printing process and toxin-free ink stick, the Xerox Phaser 8860 is our best choice for environmentally friendly printing.

This new printer generates 90% less waste than a typical colour laser product. How does it achieve this? First, it transfers nearly 100% of the ink to the paper unlike conventional printers which leave residual material behind in a waste container after every printing. Secondly, it uses safe, toxin-free solid ink sticks rather than cartridges. The ink stick cannibalizes itself so there is nothing left to throw away when it is finished – no bulky cartridges remain.

The bottom line? For every 100,000 printed pages, a solid ink printer generates approximately 5 lbs. of landfill waste compared to approximately 157 lbs. for a typical colour laser.

Thanks to All for Tobacco Dark Wall EffortsPioneer’s implementation of the government mandated Tobacco Dark Wall went off seamlessly on May 31st thanks to everyone in the field. “Without the District Managers and Retailers, it simply wouldn’t have been possible to meet the requirements by May 31st,” says Mike Dietrich, Manager of Carwash Operations and Facilities Maintenance. “I definitely want to put a huge thank you out to them and to Dan Edwards in the warehouse for all their work.”

Since the legislation mandates that only one flap be opened at a time for brief periods, this area offers a great opportunity as marketing space. “It’s a more attractive and usable surface for Bonus Bucks messaging and vendor features,” says Anthony Di Maulo, Director of Merchandising. POP display solutions for the back wall systems are being developed and should launch at sites later this fall.

Although it is too soon to know the full impact of the new dark wall legislation at Pioneer sites, early results suggest that tobacco sales have not been significantly impacted by the change.

New Micro-Fibre Uniform Shirts You asked for a lighter-weight uniform shirt and we went one better. Pioneer’s new uniform shirt is made of micro-fibre. Not only is micro-fibre light-weight but it whisks moisture away from the body keeping you more comfortable while you work.

“Approximately 500 shirts are already in use in the field,” says Dan Edwards, Pioneer Warehouse Manager. “These shirts were brought in sooner than we would normally implement a change, so stations are being given a longer period to change over,” says Dan. Sites will have until May 2009 to implement the new shirt program.

Pioneer recently put out-dated inventory to good use by donating $20,000 in surplus, logoless spring jackets to the St. Simon’s Shelter in downtown Toronto. “Upon intake many of the people we see don’t have socks or underwear never mind a seasonal jacket,” explains Bob Duff, the shelter’s Executive Director. “ Having an adequate jacket to go to an interview with can make the difference between being turned away or landing a job. This gift helps people in ways that you can’t imagine,” insists Duff. “They’re beautiful jackets and extremely beneficial.”

www.pioneer.ca

Page 5: 7_Pioneer_ExPress_Nov08

Identifying and Deterring Drive-offs at Sites 234 & 21After a rash of drive-offs in late summer 2007, Site 234, 16th Street East in Owen Sound has not had any true drive-offs so far this year. Site operator Rod Holmes used surveillance photos posted on his front door to capture a culprit and deter others from driving off.

Frustrated by a drive-off by a vehicle without a plate, Rod asked police if he could post photos of the man and his vehicle to see if his customers could identify him. Police advised that posting photos was okay but not to make any reference as to why the person was being sought. Rod’s colour photos, with the caption “Do you know this man?” lead to the identification of the man who was charged and later convicted of theft.

Although it took several months to catch the man, that lengthy delay may have worked to the site’s advantage. During that period, Rod continued to display the photos, even adding a man who had stolen a bundle of hockey cards for all to see. “Even once we knew their names, we left the signs up,” says Rod. “In all they were up for several months and we haven’t had a true drive-off since.”

Fred Brown at Site 21, Wayne Gretzky Drive in Brantford also used this technique after being hit by a drive-off, also without plates. In this case Fred sent the photos to local Pioneer sites via email and a customer on the other side of town identified the man. The information was passed on to police and the man confessed. “These are great tools,” says Fred of the technology. “I can share the information with other agents in the network right away.”

At the Brantford site the busy afternoon shift is the highest risk period for drive-offs. “People looking for the opportunity will always look our way before jumping in their vehicle to see if we’re watching,” says Fred. The quickest way to diffuse a drive-off is to make eye contact with each and every customer,” he maintains. “It’s not a perfect system, but you are making them aware that you are watching.” Usually that is all it takes to prevent the occurrence. Fred reviews surveillance tapes of every drive-off with staff to see the exact moment it might have been prevented. “Every drive-off is a training tool,” says Fred.

Retailer Express Fall 2008

Pioneer Acquires Nine Winnipeg SitesPioneer Petroleums, recently acquired nine Esso-owned properties in Winnipeg and plans are underway to boost the image and presence of these sites in the marketplace. Pioneer is the Retail Branded Distributor (RBD) for approximately 70 dealer owned Esso stations in Manitoba.

Pioneer will upgrade the existing convenience offering by introducing the Esso On the Run program at six of these locations. Tim Hortons will be added at five of the sites, three in drive thru formats and two as self-serve walk-ups. “With these changes we’ll be able to substantially raise the profile of the Esso brand in the Winnipeg market,” says Jack Theriault, Senior Vice President of Sales and Marketing.

Congratulations to Site 38 on Rymal Road in Hamilton for selling an “Ontario Instant Millions” winning ticket.

Twenty year-old John Yacou became a millionaire on August 18th. He plans to share his windfall with his family here in Canada as well as send some money to relatives in Iraq.

Pioneer’s Julia Dickenson was interviewed for local television coverage.

It should be noted that $1000 dollars is also awarded to the retailer who issued the winning ticket.

Pioneer Gets Kids Out During Family Fishing Weekend

For the fourth year Pioneer Petroleums along with Bob Izumi’s Real Fishing Show and Laidlaw Transport have sponsored a fishing day for kids on Lake L’Amable, South of Bancroft. The event is for

young boys and girls who otherwise wouldn’t get to participate during Ontario’s Family Fishing Weekend when a fishing license is not required.

This year 45 children fished for rock bass but a total of 60 children, aged 4 – 12, participated in the full-day event, which includes a fish dinner and grab bags for the kids. “Pioneer makes sure every kid goes home with something,” says long-term associate Herb Schulte who has been with Pioneer for 41 years.

Herb Schulte (on right), is shown above with some of the children

and event organizer Dean Nadon.

Pioneer Welcomes New Director of Merchandising After a lengthy search, Pioneer was pleased to welcome Anthony Di Maulo in May as the new Director of Merchandising. Anthony comes to Pioneer with a wealth of experience, most recently as Procurement Director Private Label – National Merchandising at Sobeys Inc. “Anthony comes across as high energy, ambitious, focused and accomplished merchandising executive, who will no doubt be a strong new asset to the team” says Tim Hogarth, President and CEO of Pioneer Petroleums.

“It became necessary to have an individual who could focus entirely on directing and managing the merchandising activities full time. And also Anthony will be in charge of our new XRO (Expanded Retail Offer)/Snack Express store design,” adds Dave MacFarlane who is relinquishing his marketing and merchandising responsibilities to return to the VP Real Estate and Development role in order to capitalize on current opportunities for growing Pioneer. “Anthony brings new energy and a different perspective that puts him in a good position to challenge some of our conventions,” says Dave. Anthony’s experience also includes a decade with Canadian Tire Corporation in their Retail and Petroleum divisions. Welcome aboard Anthony!

OFAH Membership Gets Boost from PioneerFish and wildlife weren’t the only winners in the Ontario Federation of Anglers and Hunters membership drive that kicked off last winter and continued into the spring. Every new OFAH member registering during the

Pioneer-sponsored membership drive received a $25 Pioneer Gift Card encouraging new or repeat patronage for Pioneer stations across the province. New members were also entered into a draw to win the Grand Prize – $1000 in Pioneer gift cards or one of five $100 Pioneer gift cards.

“This promotion was one of our most successful direct mail campaigns in years,” says the Ontario Federation of Anglers and Hunters’ Robert Pye. “It was a great success for Pioneer and a great success for the OFAH.”

The OFAH, one of Canada’s leading environmental organizations, helps save and improve precious woodland and wetland habitat, conserve fish and wildlife species, and promote outdoor education.

Grand Prize winner Russel Jubenville (right) picking up his prize from Mike Spolarich, District Manager for SW Ontario, at Site 232 in Tecumseh, Ontario.

Pembina and Edderton in Winnipeg, Manitoba

Printing Goes GREEN at Head OfficePioneer Petroleums is now using the greenest technology available for head office printing. Selected for its nearly waste-free printing process and toxin-free ink stick, the Xerox Phaser 8860 is our best choice for environmentally friendly printing.

This new printer generates 90% less waste than a typical colour laser product. How does it achieve this? First, it transfers nearly 100% of the ink to the paper unlike conventional printers which leave residual material behind in a waste container after every printing. Secondly, it uses safe, toxin-free solid ink sticks rather than cartridges. The ink stick cannibalizes itself so there is nothing left to throw away when it is finished – no bulky cartridges remain.

The bottom line? For every 100,000 printed pages, a solid ink printer generates approximately 5 lbs. of landfill waste compared to approximately 157 lbs. for a typical colour laser.

Thanks to All for Tobacco Dark Wall EffortsPioneer’s implementation of the government mandated Tobacco Dark Wall went off seamlessly on May 31st thanks to everyone in the field. “Without the District Managers and Retailers, it simply wouldn’t have been possible to meet the requirements by May 31st,” says Mike Dietrich, Manager of Carwash Operations and Facilities Maintenance. “I definitely want to put a huge thank you out to them and to Dan Edwards in the warehouse for all their work.”

Since the legislation mandates that only one flap be opened at a time for brief periods, this area offers a great opportunity as marketing space. “It’s a more attractive and usable surface for Bonus Bucks messaging and vendor features,” says Anthony Di Maulo, Director of Merchandising. POP display solutions for the back wall systems are being developed and should launch at sites later this fall.

Although it is too soon to know the full impact of the new dark wall legislation at Pioneer sites, early results suggest that tobacco sales have not been significantly impacted by the change.

New Micro-Fibre Uniform Shirts You asked for a lighter-weight uniform shirt and we went one better. Pioneer’s new uniform shirt is made of micro-fibre. Not only is micro-fibre light-weight but it whisks moisture away from the body keeping you more comfortable while you work.

“Approximately 500 shirts are already in use in the field,” says Dan Edwards, Pioneer Warehouse Manager. “These shirts were brought in sooner than we would normally implement a change, so stations are being given a longer period to change over,” says Dan. Sites will have until May 2009 to implement the new shirt program.

Pioneer recently put out-dated inventory to good use by donating $20,000 in surplus, logoless spring jackets to the St. Simon’s Shelter in downtown Toronto. “Upon intake many of the people we see don’t have socks or underwear never mind a seasonal jacket,” explains Bob Duff, the shelter’s Executive Director. “ Having an adequate jacket to go to an interview with can make the difference between being turned away or landing a job. This gift helps people in ways that you can’t imagine,” insists Duff. “They’re beautiful jackets and extremely beneficial.”

www.pioneer.ca

Page 6: 7_Pioneer_ExPress_Nov08

LED Canopy Lighting – Energy Conservation that Looks GreatLED is the newest wave in lighting technology and Pioneer is making the move. All new canopy installations will be done with LED lighting. The energy savings with LED are remarkable and with today’s environmental concerns, we’re all paying more attention to energy use.

LED uses 65 – 70% less energy for canopy lighting than current fixtures. Add to that the extended life of an LED fixture – 13 years versus the current 3 to 4 years, and LED lighting represents a drastic reduction in maintenance. Yet, there are still more reasons for choosing LED for new installations.

“LED lighting makes it easier to meet increasingly tough municipal lighting guidelines and dark sky regulations,” says Bob Reid, Director of Development and Construction. LED’s sophisticated directional capabilities helps to reduce “spillover” light, a growing concern that the dark sky movement is working to address. “LED is a different style of lighting. It gives a softer more pleasing brightness to the station. The focus becomes the pump itself rather than the entire station,” continues Bob. The safety and security for customers and employees is still there, yet the overall look is far more appealing and the product is more environmentally friendly.

LSI Industries, the leader in petroleum-related lighting, is designing and supplying the canopy lighting for Pioneer’s sites under construction in Winnipeg, Whitby and Ottawa.

Fall 2008

Every Litre Counts! Increase in Bonus Bucks Reward Schedule Testing Underway With the dramatic increase in street prices Pioneer is looking at new ways to offer customers greater value through our loyalty program. A trial of the proposed changes has been running at Windsor area sites throughout the summer. The promotion saw three significant changes to the Bonus Bucks reward schedule:

1. CUSTOMERS EARN MORE! 1 cent per litre on any purchase of Silver grade gas or diesel2 cents per litre on any purchase of Gold grade gas3 cents per litre on any purchase of Platinum grade gas

2. EVERY LITRE COUNTS!Rewards are given on every litre rather than according to 10L thresholds per the existing rewards schedule. For example the linear reward schedule would reward $0.18 in Bonus Bucks on an 18 litre purchase of Silver grade instead of $0.10.

3. NO MINIMUM PURCHASE REQUIRED!Since the thresholds have been eliminated, a customer can earn rewards on as little as 1 litre of gas purchased.

Initial results are still under review as we have just added three more pilot sites in London and one in Niagara Falls and a final decision for roll out will be made later this Fall. Feed back from our Windsor pilot shows favourable customer acceptance and satisfaction with the program.

RetailerExPress

Retailer Express Fall 2008

The Retailer ExPressFall 2008 editionA publication for Pioneer Retailers and Head Office employees.

Editor: Geoff Hogarth [email protected]

Assistant Editors: Kim Hoang [email protected]

Wendy Eveleigh [email protected]

Tel: (905) 639-2060 Fax (905) 639-2490

© 2008 Pioneer Petroleums. All rights reserved.

www.pioneer.ca

A special featured article in the National Post on August 5, 2008.

Coast to Coast Cyclists blogs about Pioneer HospitalityWhen cyclist Elizabeth McIlroy and her sister set out one Sunday last May on a training ride for a coast to coast cycling event, they never imagined how grateful they would be to see a Pioneer station through the rain. They were well into their ride from Etobicoke to

Niagara when the weather turned rainy, windy and cold. Finding nowhere to stop for another 40 to 50 kilometers, they persevered.

“Finally, we saw the signage for the Pioneer Petroleums in Pelham (Hwy. 24) and headed right in,” said Elizabeth who was training for the Sears National Kids Cancer Ride at the time. Two others cyclists were drying off and warming up

inside. “Introductions were made, a photo was taken and we were all treated to the hospitality of Pioneer’s Bruce Jeffrey,” says Elizabeth who included a thank you to Pioneer and photos of Bruce on her blog (2008.snkcr.com/elizabeth/). Elizabeth successfully completed the 19-day, 7600 km Kids Cancer ride in June.

www.pioneer.ca

Spin to Win!Pioneer now has an exciting new promotional tool that can be used at grand openings and site redevelopments to attract new customers and encourages repeat businesses. In fact Pioneer’s new Spin to Win game has been designed in two versions so that it can be used at large public events as well as at Pioneer sites.

The game is an adaptation of the traditional crown and anchor wheel where the player “spins” the wheel to win prizes. The physical version of the game is ideal for attracting attention and building brand awareness at large gatherings. It’s currently a popular attraction at Hamilton Tiger-Cats pregame shows and later this year it will appear at Hamilton Bulldog games and at Ontario University Athletics Association events across Ontario. The digital version of the game is compact and easily transported -- perfect for use on-site at Pioneer stations.

Prior to a site event featuring Spin to Win, a mail drop is sent to area households to build awareness for the new or redeveloped site and to spark interest in the contest. Both Site 169 in London and Site 167 in Scarborough featured Spin to Win to celebrate their grand reopening. During the promotion, area people are encouraged to visit and “spin” for prizes using the entry code on the mailer. The game, set-up on a laptop “spins” a digital version of the wheel and prints a prize voucher. With lots of prizes from snack items to gift cards, many customers are winners on the spot!

Sample of Spin to Win

promo mailer

Enviro-friendly Car Wash Soaps Do you know that Pioneer’s car wash soaps are environmentally friendly? “Our soaps are biodegradable and don’t contain phosphates,” says Mike Dietrich, Manager of Car Wash Operations & Facilities Maintenance. Pioneer’s soap provider, Mondo Products, was the first manufacturer of vehicle washing products to carry the EcoLogo certification.

EcoLogo products are certified by an independent company to be the most environmentally friendly products on the market. EcoLogo is a program of Environment Canada and is the oldest “green” certification organization in North America.

Cyclist Elizabeth McIlroy (on right) and sister Patty with Bruce Jeffrey at Site 237.

In an industry dominated by corporate giants, independ-ent gas retailer Pioneer Petrol-eums exemplifies the remark-able achievements attainableby a smaller enterprise that ismanaged with excellence.

Founded in 1956 by Pion-eer’s chairman Murray Ho-garth with a single gas station,the company now has 150 Pi-oneer-branded stations. It is one of the largest independent gas retailers in Canada andthe largest in Ontario.

As if pumping approximate-ly 1.4 billion litres of fuel tocustomers each year was notimpressive enough, Pioneeralso operates more than 100SnackExpress conveniencestores with fast-food offer-ings in partnership with suchmajor names as Tim Hortons,Country Style, Mr. Sub andWilliams Coffee Pubs.

The Burlington, Ont.-basedcompany — a Best Managedwinner since 2000 and a Plat-inum Club member since 2006— is also an inspirational rolemodel for the newer kids onthe business block, illustratinghow a tenacious entrepreneur-ial spirit can lead a company through tumultuous industry,market and economic changes decade after decade.

At 52 years of age — which,in company years, could beconsidered downright senior— Pioneer continues to havethe vitality, ambition, agil-ity and innovation of a youngentrepreneurial enterprisebacked by a solid, experiencedoperating approach, thoroughmarket knowledge and loyaland committed people at alllevels of the organization.

“We have been aggressiveat reinvesting a significant percentage of our earningsannually back into the busi-ness, to ensure that our sitesare competitive from a facility and offering perspective,” saysTim Hogarth, the company’spresident and CEO, and son ofthe founder.

“We’re proactive in drivingthe business forward in what we see is right for the businessand right for our customersand the community.”

Innovative Pioneer is con-stantly striving to improve andfind creative and better ways to add value to its custom-ers’ experience. Pioneer wasthe first to open a fully auto-matic car wash in Canada andamong the first to introduceautomated pump nozzles, aswell as pump island canopies.The company was also the firstretailer in Canada to offer pri-vate-label automatic bankingmachines on its premises.

Guided by its pursuit of thecustomer’s happiness, Pioneerregularly conducts qualita-tive and quantitative researchon its customers’ needs andwants and adjusts its businessmodel to seize the opportun-ities identified by the researchtrends.

That’s why this go-getter

independent has a long hist-ory of repeatedly being thefirst in launching innovativeofferings, leading the way inan industry that is dominatedby the major oil companies.

In the 1990s, Pioneer’s research noted the rushed,increased demands of mod-ern life faced by its customers. So in 1997, it invested heav-ily in expanding its sites andlaunched the SnackExpressstores.

“Our customers have re-warded us and returned theirpatronage by being loyal. As a result, Pioneer enjoys someof the highest average sitethroughputs of any petroleumretail chain in the country,”Mr. Hogarth says.

Pioneer has been rewardingits customers since the 1960s with S&M green stamps ,followed by Pioneer money and now Pioneer Bonus Bucks,one of the longest-runningloyalty programs in the in-dustry. However, that, too, hasevolved to reflect the times,and last year the programwent paperless, switchingsuccessfully to the ElectronicBonus Bucks card.

But far from resting on itslaurels, Pioneer continuesto introduce new services,launching an auto roadsideassistance program this falland looking at adding finan-cial services — including trav-el and medical insurance — toits list of offerings.

Pioneer is also in the midst of planning a revolution to thegas/convenience experience,looking to make changes that will address everything fromthe challenges of a highlycompetitive market to theincreasingly time-pressuredcustomers’ needs. Pioneeris thinking big and continu-ing to be a leading petroleumretail innovator in Canada.

The company’s dedicationto growth through a low-cost,value added customer ex-perience has been pivotal inPioneer’s ability to success-fully compete in an industrywhere independents have his-torically operated on extreme-ly narrow profit margins.

“The reality is that wepurchase our product fromthe major oil company refin-ers but, at the same time, wecompete with them acrossthe street in the same market-place, and we do all of that fora thin 5% gross margin,” Mr. Hogarth says.

Meticulous efficiency hasbeen key to keeping costs downfor the company and consum-ers. “We have been aggres-sive in how we streamline thetail end of our network. We’renot so much interested inthe number of locations as inensuring that we have highlyefficient and competitive loca-tions,” he says.

Through the acquisition ofother smaller independent re-tailers over the years, Pioneeris not just one of the best-man-

aged companies in the coun-try, it is also one of the most well-rounded ones — know-ing how to take advantage not just of new technologies andmarket opportunities but alsoexcelling in forming alliancesand partnerships.

“A bold move we commit-ted to in 1993 was altering ourownership structure througha joint venture partnershipwith Suncor Energy Prod-ucts Inc.,” Mr. Hogarth says.“There was a lot of consolida-tion in the refining industry at the time and the joint venturewith Suncor gave us access toa secure and quality source ofsupply, and also enabled us tomanage a good percentage ofSunoco’s retail network.”

Pioneer also entered intoa strategic arrangement withImperial Oil in 2004, becom-ing its retail branded distribu-tor for Esso in northeasternOntario and all of Manitoba.

Additionally, Pioneer acquiredImperial-owned and con-trolled locations in marketssuch as Winnipeg, which itcontinues to operate as Essostations.

“In many ways, we’re a pet-roleum management com-

pany that has evolved into aconvenience retail company,”says Jack Theriault, Pioneer’s senior vice-president of salesand marketing.

“We have our own brandbut we adapt those same skillsthat have made us successful

with our brand and spreadthem to other opportunities like Sunoco and Esso. We’vesuccessfully been able totake on the management of135 Sunoco sites over a two-month period in late 1993, andover the past three years we’vedone the same with 100 Essodealer-contracted locations,successfully managing themwith very few resources.”

And so it is no surprise that this well-rounded company,which donates 1% of its earn-ings each year to charities,has been recognized year after year as one of Canada’s Best Managed companies.

“Participating in the pro-gram has allowed Pioneer toreally focus on and articulateour best practices and focus more on where it is we wantto take this business and how we want to grow,” Mr. Hogarthsays. “There’s a sense of prideand positive energy that is in-

stilled in everything we do as aresult of being associated withthe Best Managed program.”

“Pioneer Petroleum’s con-tinued success in a difficult market is a testament to itscommitment to innovationand emphasizing the import-ance of satisfying its custom-ers,” says Gordon Fisher,publisher of National Post. “Pioneer is also a fine exampleof the type of company that isrecognized by the Best Man-aged program: One that con-tinues to evolve and improvewhile maintaining its coreprinciples.”

To find out how the Best Managed program can helpyour private company, visitwww.canadas50best.com.

And to get up close and per-sonal with Best Managed com-panies, stay tuned to this pagefor upcoming profiles of past winners, their best practices and lessons learned.

B E S T MAN AG EDA J O I N T V E N T U R E W I T H C A N A D A ’ S 5 0 B E S T M A N A G E D C O M P A N I E S P R O G R A M

S P E C I A L F E A T U R E T O T H E N A T I O N A L P O S T

Titan in a landof industy giants

TimHogarth, left, Pioneer Petroleum’s CEO, and Pioneer founder and chairmanMurray Hogarth, say the company’s focuson innovation has provided new business opportunities.

We adapt ourskills and spread

them to otheropportunities

www.pioneer.ca

Points are pointless. Bonus Bucks are better.TM

As Ontario’s largest independent petroleum retailerPioneer Petroleums consistently strives to provideexceptional value, unparalleled service and a host ofconsumer-driven programs. The result is a compellingoffer and a company we’re all very proud of.

The true spirit of a Pioneer.