NewsBite

Coles Express service stations to be rebranded after Viva Energy takeover

The Coles name is set to vanish from 700 petrol stations to be replaced by a made up new brand – but it could then change again.

Coles offloading petrol business to Viva Energy

The company that has snapped up Coles’ service stations has announced the new brand they will trade under – and it’s going to take some getting used too.

But you may not see if for too long with another brand waiting in the wings.

It’s possible some petrol stations could rebrand from Coles Express and then rebrand again.

Coles Express has 710 petrol sites which sell Shell fuel and prominently feature the British oil major’s logo.

In April, Coles announced it was selling its Coles Express stations to petrol and diesel supplier Viva Energy for $300 million.

The Coles Express name will slowly disappear from petrol stations over the next two years. Picture: NCA NewsWire / Emma Brasier
The Coles Express name will slowly disappear from petrol stations over the next two years. Picture: NCA NewsWire / Emma Brasier

Viva is a Melbourne based company formed in 2014 that owns the Geelong oil refinery, Liberty Oil service stations and licences the Shell name and its products in Australia.

Under the sale agreement with the supermarket giant, Viva can continue to use the Coles Express name until 2026 but the company expects most stations to be excised of the retailer’s brand by around the end of 2025.

The Coles Express stations will, at least initially, trade under the “Reddy Express” name.

Coles Express service stations to be rebranded to Reddy Express after Viva Energy takeover
Coles Express service stations to be rebranded to Reddy Express after Viva Energy takeover

“Consistency and familiarity are critical to reassure our customers that they will continue to receive the same great service, offers, loyalty and rewards as they enjoy today,” Viva Energy convenience and mobility head Jevan Bouzo.

The rebranding is a light reworking of the current stores with the Coles name in white on red simply replaced with the Reddy name in the same colours.

The Shell name will stay on stations and it will be Shell fuel in the pumps.

Reddy customers will also be able to earn Flybuys points and get the 4 cents per litre Coles docket discount. Coles’ products will be sold in Reddy stores.

Shell will still feature predominantly at Reddy stores.
Shell will still feature predominantly at Reddy stores.

On The Road to be main brand after Coles

But many of the larger stores could, over time, convert again but that time to the OTR brand.

As well as snapping up Coles Express, Viva is also digesting OTR Group which it bought for $1.15 billion in April.

OTR, short for “On The Road,” is a fuel retailer that is particularly well known in South Australia and Victoria.

OTR stores often include fast food concession such as Subway, Hungry Jack’s and Guzamn Y Gomez.

“The transition of the Coles Express business over to Viva Energy has gone very well and the rebranding of these sites now to Reddy Express is the next step while we await the approval process of the OTR acquisition,” said Viva’s Mr Bouzo.

Viva Energy hopes to roll out the OTR brand across Australia. Picture: NCA NewsWire / Kelly Barnes
Viva Energy hopes to roll out the OTR brand across Australia. Picture: NCA NewsWire / Kelly Barnes

The possible snag is the OTR rollout can only begin if Viva gets approval from the regulators – otherwise it’ll be saddled with Reddy.

“Once approved, OTR will be our leading convenience brand which is planned to be rolled out across the network longer term and represents a world-class convenience offer matched with high-quality Shell fuels.”

Coles’ sale of its fuel outlets marks the exit of Australia’s two major supermarkets from petrol retailing.

In 2018, Woolworths sold its 540 Caltex co-branded stores to the UK’s EG Group for $1.7 billion. These have now been rebranded to EG Ampol service stations.

But Woolies has now begun to open Woolworths Metro Go convenience stores at some petrol stations owned directly by Ampol, which was formerly known as Caltex.

Original URL: https://www.news.com.au/finance/business/retail/coles-express-service-stations-to-be-rebranded-after-viva-energy-takeover/news-story/01aa4547c848dddb316d3350feb1b45e