CST Brands Forms Alliance With Sobeys in Canada

MONTREAL -- CST Brands Inc., operator of the Dépanneur du Coin banner in Canada, and Sobeys Québec, owner and/or distributor of 205 Shell stations, signed an agreement today to grow their respective brands in the Québec market.

As part of the arrangement, which will be implemented in early 2014, CST will acquire four Sobeys locations that will operate under the Dépanneur du Coin banner and continue to sell Shell fuel. An additional five Dépanneur du Coin stores will change their fuel brand to Shell.

"This agreement is in keeping with our plans to expand the presence of Dépanneur du Coin in Eastern Canada as a convenience goods retailer. This is a first for CST Brands, expanding our fuel offerings by broadening our brand offerings with Shell," said Christian Houle, senior vice president, Canadian retail, for CST Brands. The company operates approximately 850 retail fuel sites in the province of Québec, Ontario and the Atlantic Provinces.

Meanwhile, Sobeys Québec will look to strengthen ties with its customers through this pact.

"The addition of five new Shell stations in close proximity to five of our IGA [grocery] stores gives our Air Miles program even more added value," said Pierre St-Laurent, senior vice president of business development at Sobeys Québec.

Sobeys Québec and the Sobeys Québec Petroleum Branch supplies food products to nine stations. Sobeys Québec is a subsidiary of Sobeys Inc., wholly owned by Empire Company Limited. Headquartered in Montreal-Nord, Sobeys Québec operates several banners including IGA, Les Marchés Tradition, Marché Bonichoix, Rachelle-Béry health food stores, and various convenience stores including Voisin, Bonisoir and Select.

San Antonio-based CST Brands Inc. also operates 1,040 Corner Store convenience stores and gas stations in the United States.