www.pioneer.ca

Winter 2008-2009

RetailerExPress

Pioneer has installed the first operator-free variable frequency drive (VFD) car wash in the world at Site 155 on Industrial Avenue in Ottawa. This state-of-the-art equipment uses a single control system to regulate the VFDs, which power the components. VFDs are electronic devices that allow operators to precisely manage the speed of electric motors allowing unprecedented control over the entire wash process. It’s a huge innovation in car wash technology and it’s launching here at Pioneer Petroleums.

This installation is the result of a longstanding partnership that Pioneer has with car wash manufacturer Belanger Inc., and their value-added reseller Mondo Products. “We trust them,” says Bob Reid, Director of Construction. “They don’t just drop the product and run. They’re there for support and they know that we’ll do our part to make it a success as well,” adds Bob. This isn’t the first time that the company has “pioneered” product innovations with Belanger. The first FreeStyler car wash installation in Canada was at Site 169 in London and the first QuickFire™ wrap brushes were installed at Site 92 in Burlington. The latter was featured in a video presentation at the International Car Wash Show in Las Vegas three years ago.

“In a conventional car wash you can normally adjust the conveyor speeds to increase or decrease the number of cars per hour but the brushes and everything else remain at the original speed,” explains Mike Dietrich, Manager of Car Wash and Maintenance for Pioneer. “VFDs allow you to ramp up voltage to various levels thereby setting the rotational speed of wraps and brushes in relation to conveyor and dryer speeds.” The system can all be

adjusted together as a unit so Retailer Toni Aoun can manage the entire tunnel -- conveyor and equipment -- with one touch quickly adjusting for business or weather conditions. Each vehicle gets the same great wash no matter how the conveyor speed is varied.

Pioneer’s newest Clean Express, which opened on December 12th, is also a smart environmental choice. VFDs save energy by eliminating both the power loss that occurs when electricity is converted into hydraulic power and the energy surge that standard electric motors require at start up. VFDs can easily ramp up or down in response to processing needs and the entire system responds. “It is strangely quiet in the tunnel,” notes Toni, since all the hydraulic noise has been eliminated.

Site 155’s car wash is also outfitted with the QuickFire wrap, which senses vehicle’s size to provide increased vehicle contact at all speeds with no skunk lines. The AirBlade™ VFD system is an energy efficient dryer designed to create a thin blade of air that strips water off the vehicle surface. Topped off with the Tire Sniper™ for a touchfree tire wash and a Simonized tire dresser, Pioneer’s newest car wash is truly a stand out.

The Industry’s First VFD Car Wash Built at Pioneer

The exterior of Site 155’s new VFD car wash Industrial Ave, Ottawa

The latest car wash technology at work

Retailer ExPress Winter 2008-2009

Kicking Off ’09 with RBD Growth

Pioneer Auto Club Peace of mind on the open road

Pioneer has long been known for offering good value to drivers. Now, with the introduction of the Pioneer Auto Club, that value extends to emergency roadside assistance service. Pioneer Auto Club offers peace of mind and convenience without the up-front costs or annual fees and is available exclusively to Bonus Bucks cardholders.

The Pioneer Auto Club is a pay-as-you-go program whereby members have emergency roadside assistance 24 hours a day, including:

coverage for all passenger vehicles, including motorcycles • and motor homes

coverage across Canada and mainland U.S.A.•

eligible services such as tows, battery boosts, flat tires, • locked car service, emergency gas delivery, and more!

Members pay for the cost of the service over the phone only when they use the emergency service and they get the assurance of great value - backed by the Best Price Guarantee.* So remind your customers to pick up their Pioneer Auto Club card today!

*see details at www.pioneer.ca/autoclub.asp

“This is a feather in our cap,” says Jack Theriault, Pioneer’s Senior Vice President of Sales and Marketing.

Imperial Oil Limited recently announced the selection of Pioneer as the new Retail Branded Distributor (RBD) for the Greater Toronto Area (GTA) West region. “This is a feather in our cap,” says Jack Theriault, Pioneer’s Senior Vice President of Sales and Marketing. “The fact that they have come to Pioneer suggests that we deliver the caliber of service that they are after.” This adds an additional 30 sites to Pioneer’s RBD network. Along with the existing territories in Northern Ontario and all of Manitoba, this new arrangement means that Pioneer starts the new year as the RBD for 130 Esso sites!

“This represents an excellent growth opportunity for Pioneer to further advance its successful RBD relationship with Imperial Oil,” said Pioneer’s CEO & President Tim Hogarth when the arrangement was announced in September. “Due to the success of the RBD business model, Imperial Oil elected to convert more of their urban dealer locations to this program.”

“We’ve just recently acquired two other Esso sites, one in Collingwood and the other in Uxbridge,” adds Jack. “We get these opportunities because of the relationship we have with Imperial Oil and it allows us to get into a market where, up until now, we haven’t had any presence,” he explains. Clearly, it’s a great strategic relationship that continues to offer exciting growth opportunities for Pioneer.

When Pioneer Petroleums started working with Flexx Corporation on canopy design back in 1997 neither company realized that it was the beginning of a partnership that would introduce many innovations to canopy design. The partnership began with the design of the canopy for Site 12 on Queenston Road in Hamilton. Since then, Flexx and Pioneer have worked closely together and brought new technology and materials to canopy installations, often years ahead of others in the industry. Flexx Corporation launched in 1996 when President and Founder Nando Di Benedetto became a consultant, helping oil companies retrofit their brand image through canopy design. At the time there were only two canopy suppliers, but it wasn’t long until Flexx had developed into a full service company providing design, engineering and installation services. By offering a complete service Flexx could help companies achieve a standardized professional image at every location. In fact, it wasn’t until Flexx and Pioneer started working together, that Pioneer started to achieve the standardized site appearance that we now know.Achieving a consistent image at each site is much more difficult than one might think. “They look very similar but I have never built two canopies exactly the same,” explains Nando. “Every canopy has to be engineered. Size, snow loads, wind factors, soil bearing report, and municipal codes all come into play,” he explains. After the site evaluation it may take up to a month of engineering work before the design can be submitted to the local authority for engineering approval. There is a lot to it. “We’re experts in canopies and we simplify the process for the project manager,” maintains Nando. Bob Reid, Pioneer’s Director of Construction might consider that an understatement. “It’s a huge advantage to deal with a supplier who takes responsibility for the canopy,” says Bob. “It’s one stop shopping. We don’t have to deal with multiple suppliers and the problems that entails. At the end of the day, it’s all done and done right,” declares Bob. “But it’s also a

lot more than that,” he continues. “Flexx is willing to work with us to develop the best canopy for every single site. They take pride in what they do and we have full confidence in their craftsmanship and workmanship.” Flexx has been instrumental in keeping Pioneer abreast of new developments. However, Nando directs much of the credit back to the Pioneer culture. “Pioneer ends up being

several years ahead of others in the industry because they are eager to hear new ideas,” says Nando. “Pioneer is willing to take advantage of changes to technology immediately and that’s exciting.” Most of the changes that have been made recently have had an environmental aspect. According to Flexx, Pioneer is the first company to adopt LED technology as the standard for all new canopy installations. LED technology conserves

energy and is far better at meeting the requirements of

the “dark sky” movement, which is aimed at reducing

light pollution. Some of the canopy components have also

been changed so that canopies are now 100% recyclable. To date, five

Pioneer sites have been built in this way.

Flexx has also investigated solar energy for canopy use. It isn’t

feasible right now, but based on their recommendation, new Pioneer canopies

have been built with a modification that will facilitate solar use in the future. Changes such as these can take years to implement at other companies. That’s where partnership and trust come in. “Our company feels like an extension of the Pioneer family,” says Nando. “They’ve put a lot of faith in us, but I know that if Pioneer benefits, Flexx will always benefit. It’s very satisfying. ” It’s a partnership that gives both companies the chance to change, to grow and to innovate.

Flexx Corporation – A Leading Edge Partnership

Flexx Project Manager James Szabatin

www.pioneer.ca

Site 92, Fairview Street, Burlington

Retailer ExPress Winter 2008-2009

One Cent a Litre Day for United Way As a proud sponsor of United Way’s Red and White Week, Pioneer Petroleums raised money and awareness for the wonderful work done by this agency in the Burlington and Greater Hamilton area. Participating local Pioneer stations hosted One Cent Per Litre Day, donating one cent for every litre of fuel sold on October 21st, 2008. The same stations also sold United Way car flags for $5 with 100% of the proceeds going directly to the United Way. In total, Pioneer’s Red and White Week activities raised $11,449.96 for the United Way of Burlington and Greater Hamilton.

Tim Hogarth at kick-off of Yates Cup

Pioneer kicks off their United Way Red and White Week

sponsorship at its Mainway & Appleby Line location in

Burlington on October 16th, 2008.

Pioneer sponsorship front and centre at Yates Cup

ONTARIO UNIVERSITY ATHLETICS

Pioneer Scores with University Football FansThe 101st Yates Cup, was presented by Pioneer Petroleums on November 8th, 2008 in London, Ontario. The Cup, the oldest on-going football trophy in North America, goes to the winner of the Ontario University Athletics (OUA) football conference. As presenting sponsor, Pioneer Petroleums was front and centre in all media coverage. Pioneer President and CEO Tim Hogarth, presented the Yates Cup to the Western Mustangs who won a 31-17 victory over the Ottawa Gee-Gees.

At the Desjardin Vanier Cup, held at Hamilton’s Ivor Wynne Stadium on November 22nd, Pioneer presented the Player of the Game trophy. Pioneer’s exciting “Spin to Win” game was played on the Jumbotron in front of nearly 14,000 fans who braved poor weather to watch Laval beat Western 44-21 in the Canadian university football final. It was definitely worth it for the lucky fan who won a $250 Bonus Bucks card. Fans at home also saw the Pioneer logo as the company was recognized as a proud sponsor in televised coverage. In addition to football, Pioneer also sponsors OUA basketball and hockey programs.

Tim Hogarth with the Vanier Cup. Daughter Avery

presented the Vanier Player of the

Game award at the

Vanier Cup, Ivor Wynne Stadium, Hamilton

www.pioneer.ca

Stittsville Site Reborn in Carleton Place Site 275 in Carleton Place marks Pioneer’s triumphant return to Highway 7 with Retailer Alex Klinko. The company closed its eight position gas bar on Highway 7 in Stittsville when it was expropriated to make way for road reconstruction several years ago. The Stittsville site was located between Carleton Place and Ottawa, so it had been a convenient stop for commuters heading to work from the suburbs.

The opportunity for another location on the Highway 7 route arose last spring when a former Petro-Canada location became available. The site was rebuilt with new tanks, a 12 position gas bar with high speed diesel as well as the new LED canopy lighting – the first LED canopy in the network. “The canopy uses 70% less energy than our previous system,” says District Manager Chris Braceland. “That is remarkable and it looks great too.”

“Customers love us,” adds Chris. “We’ve got the best prices in town, a great loyalty program and we’re open 24 hours,” explains Chris. But the real proof is in the volume, which has grown beyond expectations since Pioneer launched this location on September 24th, 2008.

Give What You Can 2009

Pioneer’s customers have now donated over $842,000 to Children’s Hospitals in Ontario since 1985. This year’s Give What You Can campaign will run from April 6th – 19th.

Cole is just one of our poster children this year and one of thousands who needed the specialized care of a pediatric children’s hospital. Cole was born weighing only 2lbs, 2 oz., so tiny that his Dad’s wedding band fit on his tiny arm. Today, Cole is a healthy and happy 2 year old, thanks to the incredible neonatal care he received – care that wouldn’t be possible without the support of campaigns like Pioneer’s Give What You Can.

The five designated children’s hospitals receiving donations generated by this campaign are: Children’s Health Foundation (London), McMaster Children’s Hospital (Hamilton), SickKids (Toronto), University Hospitals Kingston Foundation and Children’s Hospital of Eastern Ontario. Let’s raise as much as we can for Ontario’s Children’s Hospitals!

We’re gearing up for Pioneer’s 2009 Marketing Conference and Awards Banquet on March 10th at the Westin Bristol Place Toronto Airport followed by Convenience U CARWACS on March 11th.

This annual event brings Pioneer Retailers together as a team to celebrate the successes of the past year, share ideas, and learn about changes in our industry. Our theme for 2009 is Success Through Innovation and you don’t want to miss it. You can check out the agenda for Convenience U at www.convenienceu.

ca/TO/index.php. Retailers, don’t forget to RSVP as outlined in the invitation. See you there!

2009 Success Through Innovation

DATE: TUESDAY, MARCH 10th, 2009LOCATION: THE WESTIN BRISTOL PLACE TORONTO AIRPORT10:00 am - 4:30 pm - MARKETING CONFERENCE 6:30 pm -7:30 pm - COCKTAILS

7:30 pm - 11:00 pm – DINNER & READY FOR BUSINESS2008 AWARDS PRESENTATION (Entertainment included)(DRESS CODE: BUSINESS CASUAL - JACKET & TIE OPTIONAL)

DATE: WEDNESDAY, MARCH 11th, 2009 LOCATION: THE TORONTO CONGRESS CENTRE7:30 AM - 8:30 AM: BREAKFAST & REGISTRATIONWEBSITE: WWW.CONVENIENCEU.CA/2008/TO/INDEX.PHP

2009 PIONEERMARKETING CONFERENCE& AWARDS BANQUET

CONVENIENCE U

WE HAVE RESERVED A BLOCK OF ROOMS FOR ALLRETAILERS FOR THE NIGHT OF MARCH 10TH, 2009. FOR THOSE RETAILERS TRAVELLING LONG DISTANCE ANDREQUIRE A ROOM ON MARCH 9TH, 2009, PLEASE DISCUSSYOUR NEEDS WITH YOUR DISTRICT MANAGER (DM). ONCEAPPROVED BY YOUR DM, PLEASE NOTIFY HEAD OFFICE SOARRANGEMENTS CAN BE MADE ON YOUR BEHALF.

TO RSVP YOUR ROOM REQUIREMENTS (AS APPROVED BYYOUR DM) CONTACT WENDY EVELEIGHEmail: wendy.eveleigh@pioneer.ca Tel: 905-633-3409

THE WESTIN BRISTOL PLACE TORONTO AIRPORT950 DIXON ROAD, TORONTO, ON M9W 5N4TEL: 416-675-9444

(SEE REVERSE FOR MAP)

PLEASE COMPLETE AND MAIL IN THE ENCLOSED RSVP CARD TO CONFIRM YOUR ATTENDANCE.WE LOOK FORWARD TO SEEING YOU THERE!

Pioneer Petroleums

5360 South Service Road, Burlington, ON L7L 5L1

T. 905-639-2060 F. 905-639-2490

www.pioneer.ca

Airport Rd.Dixon Rd.

Carlingview Dr.

Martin Grove Rd.

HWY 409

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HWY 427

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Retailer ExPress Winter 2008-2009

CHML/Y108 – Christmas Tree of Hope As the lead sponsor of the 2008 CHML/Y108 Christmas Tree of Hope, Pioneer was happy to host a one cent per litre day on December 17th. The event raised $11,582 and together with customer donations of $26,392, nearly $38,000 was raised for the children’s charity at participating sites in Greater Hamilton. In order to match last year’s contribution of $50,000, Pioneer Petroleums Children’s Foundation made a gift of $12,000. “We wanted to do this to help shield the children from the current economic challenges,” said Tim Hogarth, Pioneer’s CEO & President. “The need is still there so we are very proud, that with the help of our generous customers, we are able to match last year’s gift.”

“Just Ask Everyone” say Top Three Fundraising Sites

“Anything to do with kids is very important,” says Karen Jury, who along with the employees at Site 191 in Hagersville, raised $3,860 from their customers for the Christmas Tree of Hope. “You ask everyone if they want to donate, it’s that simple,” she says, explaining how they raised more than any other participating site. Karen used the one cent per litre day as an added opportunity to talk about the campaign, and she made sure that everyone at the counter knew about the cause and why it was worth supporting.

Amanda Jarvie at Site 193 in Cayuga used the same technique to raise $2,232 from her customers. Both Amanda and Karen say that there is just something about the people in small towns that make everyone want to help out. Even so, both ladies are adamant – you have to ask everybody, every time if you want to be successful.

Leo Daigle in Dundas at Site 19 sets a goal for his station – this year it was $2,000. “It’s a popular campaign in the area but toward the end people are being asked to give all over town,” says Leo, noting that in past years people started turning down requests late in the campaign. His solution – go in early with a goal and once you’ve met it, ease off. By making the campaign a priority before others gear up, the site raised $2,106 for the children’s charity and created a positive association with a popular local tradition. Congratulations to all!

www.pioneer.ca

“It started with one family with two children many, many years ago and it just ballooned from there,” says Laurie Reid, Pioneer’s Controller and part-time Elf. This year Pioneer employees sponsored 46 mothers and children and made Christmas a little merrier for many, many others as well.

“We have families that quite simply would have nothing under the tree,” says Clare Freeman, Executive Director of Interval House which offers shelter and other services to women and children who are escaping from abuse. “It is such a critical time for these families. Not only is there sadness over the family break-up but there is no money to put gifts under the Christmas tree. I can’t tell you how much these gifts mean to these mothers and to their families,” exclaims Clare.

Interval House provides Pioneer with a wish list for each family – totaling 30 mothers and children -- and a number of Pioneer Elves go shopping. Each family also gets a grocery gift card. In addition, Pioneer sponsors 10 teenage girls at Charlton Hall, and another six at McMulkin House, a home for 6-12 year-olds in the care of the Children’s Aid of Hamilton.

A small committee works all year to make this happen, running bake sales, chocolate raffles at Easter, summer barbecues, 50/50 draws etc. Everyone gets involved to make Christmas merrier for others including many of Pioneer’s suppliers, partners and friends. The single biggest fundraiser this year was the raffle held at Pioneer’s annual golf tournament which contributed more than $2000 towards the grand total of $14,000.

In addition to sponsoring families, cash donations were made to support Christmas dinner programs through Hamilton’s Mission Services and two Burlington churches. Tim Hortons gift cards were donated at the request of another church. They’ll be distributed to homeless people through their Out of the Cold program so that they can enjoy hot drinks and food. Finally, a donation was also made to the Community Child Abuse Council to promote the safety of children all year long.

Thanks to everyone for making Christmas merrier for so many people this year. “You just can’t imagine how much this means,” says Clare from Interval House: “You are very much our Christmas angels.”

From Old to Bold in Ottawa Site 155 on Industrial Avenue in Ottawa has taken a giant leap forward from its circa 1963 Top Valu roots much to the delight of Retailer Toni Aoun. Toni started at the original two- pump station as a teenager and took over managing it for Pioneer in 1996. After a complete rebuild, Toni’s site now includes a 12-postion self-serve gas pump, Snack Express, Tim Hortons and an industry-leading car wash. (See First VFD Car Wash in North America.)

Toni acknowledges that learning everything necessary has been a big challenge but one that he has embraced. “The people at head office did an

awesome job of walking me through every detail. Now I have the best site, great staff – I’m very, very proud – I’m walking two feet off the ground,” exclaims Toni.

“My customers are loving it,” continues Toni. “They are happy for us, but it’s really all for them because if your customers aren’t happy, you have nothing,” adds Toni. We couldn’t agree more!

Spreading the Joy at Christmas

Before

After

The rebuilt Site 155 in Ottawa opened on November 26th, 2008.

Retailer Toni Aoun inside his old site

Retailer ExPress Winter 2008-2009

The Retailer ExPressWinter 2008-2009 editionA publication for Pioneer Retailers and Head Office employees.

Send us your Pioneer stories.

Editor: Geoff Hogarth geoff@pioneer.ca

Assistant Editors: Kim Hoang kimh@pioneer.ca

Wendy Eveleigh wendy.eveleigh@pioneer.ca

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

© 2009 Pioneer Petroleums. All rights reserved.

www.pioneer.ca

Winnipeg Customers Happy to See Investment The first two of Pioneer Petroleums’ Esso On the Run site upgrades in Winnipeg are complete and the response is positive. “People are really glad to see the reinvestment here,” says District Manager Kirk Melville. “Esso shut down quite a few stations in the past few years in the Winnipeg area, so people seemed concerned about that,” he explains. The upgrades at two sites are just the beginning of a program that will see improvements to six of the nine Winnipeg Esso sites recently acquired by Pioneer Petroleums.

The first to launch was the Chancellor Esso (Site 269), which reopened on October 29th after a two day construction closing. Still to come is a self-serve Tim Hortons unit, which will be launched in 2009.

The second site, #268 at Pembina and Edderton, upgraded the existing Tiger Express to the On the Run program at the end of November. It is one of the company’s busiest sites in Winnipeg and managed to stay open during the conversion. Plans also call for the self-serve Tim Hortons unit at Pembina and Edderton to be converted to a walk-up with drive-thru in the near future. Stay tuned Winnipeg. Pioneer Petroleums is investing to serve the Winnipeg market even better. Upgrades at the other Esso sites are on the way.

Site 200 on Dundas Street in Whitby, Ontario reopened on November 6th, 2008 after a complete rebuild that began with the tear down of the existing two-bay garage and 8 position gas bar. The new site, run by 10-year veteran Retailer Ali Lakhani, is a 12-position self-serve gas pump, Snack Express and Country Style walk-up. “The customer response

is a little mixed because the site used to be full service,” says District Manager Ray Angrove. “However, they really like the new convenience store! The site was also built with the new LED lighting,” continues Ray. “So there are huge savings, both for Pioneer and for the environment.”

Whitby Site Renewal

On the Run at Chancellor Esso in Winnipeg

Site 200 in Whitby, rebuilt and wonderful

Remember…Keep your site clear of ice, snow and slush. A well-cleared site is not only a safety consideration, but an important customer service standard as well.