million tons of LPG distributed annually
million homes served
commercial, industrial and residential condominium customers
Ultragaz is the largest distributor of liquefied petroleum gas - LPG in Brazil, with 23% market share in 2015, and one of the world’s largest independent distributors in terms of sales volume. Its market is divided into two segments: bottled, formed mainly by residential consumers, and the bulk segment, mainly composed of small- and medium-sized businesses (SMBs), agribusiness and residential condominiums. The bottled LPG operations serve approximately 11 million households across 23 states through a network of approximately 5,100 independent resellers. In the bulk segment, Ultragaz has in its portfolio approximately 50,000 commercial, industrial and residential condominiums customers.
In the bottled segment, characterized by its resilience, differentiation through innovation appears mainly in new ways of dealing with customers and resellers. To meet this demand, we highlight Ultragaz Connect, an application for smartphones that allows costumer to order LPG bottles. The application allows us to serve the request through the nearest reseller, promoting a new consumer purchase experience by ensuring quick delivery and increasing the safety for the consumer, since it shows the location of the truck and photos of the driver and deliveryman. In 2015, over 30,000 downloads and approximately 140,000 transactions were made with Ultragaz Connect. The application offers benefits to resellers as well by allowing, among other benefits, optimization of the fleet and distribution network and increased productivity of the delivery teams. With this initiative, the company not only invests in improving management, but also focuses on attracting new customers through a differentiated service.
Another initiative is Vale Ultragaz, a coupon that can be purchased by consumers through a network of partners - supermarkets, bakeries and drugstores. In addition to representing greater safety and convenience for the consumers, Vale Ultragaz offers resellers a new customer loyalty opportunity. In 2015, 804 thousand coupons were sold. In addition to increasing convenience for its customers, this initiative illustrates the potential of cross-opportunities among Ultra’s businesses: Vale Ultragaz began being sold in am/pm stores and Extrafarma drugstores.
The bulk segment has as an important strategic front in the search for new customers among small- and medium-sized companies, residential condominiums and agribusinesses. One of the strengths of the strategy in this segment is to offer customers complete and convenient solutions, speeding up the installation time. In 2015, Ultragaz accelerated the implementation of UltraPronto, a new model for bulk installation, launched in 2014, through a turnkey concept, reducing installation time by 30%.
Another element is the diversification of solutions for different uses of LPG, including asphalt plants, drying of grains and seeds, car washes, aviary heating and special gases. An example of this was the development and launch, in 2015, of an agricultural implement used to eliminate weeds in crops without the use of pesticides. Developed by using models imported from the USA and France, with adaptations to the tropical climate, the agricultural implement retains more heat and wastes less energy, representing greater versatility and economic gains.
In the large customer segment, Ultragaz signed a long-term partnership to supply LPG to Companhia Siderúrgica do Pecém (CSP), through a built-to-suit project.
- Leader in the LPG distribution market, with a 23% market share, comprising approximately 50,000 customers in the bulk segment, in addition to 11 million homes in the bottled segment.
- Only LPG distributor to rely on an exclusive reseller network, which ended 2015 with nearly 5,100 independent resellers.
- Product and service development actions strongly backed by innovation.
Ultragaz encourages its suppliers to engage in social and environmental projects that address health, safety and environment best practices, also considering the neighboring communities. The definition of the participants is based on the Supplier Qualification Index. In addition to commercial information, the idea is to share concepts and relevant information about social and environmental responsibility with this audience.
In order to qualify the reseller network, strengthening the distribution channel, the business relationship with Ultragaz, the loyalty of end consumers and contributing to the profitable growth of resellers, Academia Ultragaz Revenda (Reseller Academy) offered, in 2015, a pre-operation training to 205 resellers – a training program for new brand operators, based on four elements: Strategy, Finance, Sales and People. The training includes an integration phase in a production base and visits to school resellers.
SALES VOLUME ’000 ton
NET REVENUES R$ million
EBITDA R$ million
Your gas bottle one click away
- Ultragaz Connect application to buy LPG bottles.
- Safety and speed:
> location of the truck and identification of the truck driver and deliveryman
> order fulfilled by the nearest reseller.
- Advantages also for resellers: favors optimization of the fleet and distribution network.
Highlights in 2015
- Acceleration of UltraPronto implementation, a new model that allows increased installation agility in small – and medium-sized businesses.
- Ultragaz offers Ipiranga’s Km de Vantagens loyalty program to its customers.
- Online Academy launch interactive distance learning platform offered to employees.
LPG Distribution in Brazil
In partnership with Junior Achievement, the largest organization of practical education in economics and business, Ultragaz contributes to awaken the entrepreneurial spirit in young people of school age, seeking to facilitate access to the labor market through educational programs. Ultragaz supports the project as a sponsor and through volunteer work. In 2015, Ultragaz increased the number of employees involved with the Junior Achievement project, reaching 221 volunteers. The activities took place in 12 Brazilian states and more than 300 thousand young people have benefited from the programs.
Ultragaz maintains, within Academia Revenda (Reseller Academy), the Somar Sustainability Project, which offers training to resellers on sustainable practices in addition to LPG distribution technical standards. Through workshops, the program presents theoretical concepts and current project initiatives that can be replicated at the resellers. Some examples: “Ultragaz pega Pilhas, Baterias e Celulares” - Ultragaz takes Batteries and Cell Phones program and “Junte Óleo, Ultragaz coleta, Soya recicla” - Store Oil, Ultragaz Collects, Soya Recycles, started in 2013 in the state of São Paulo.
The Store Oil Campaign: Ultragaz Collects and Soya Recycles is the result of a partnership between Ultragaz, Bunge (Soya) and Instituto Triângulo. For every 2 liters of used oil, packed in a plastic bottle and delivered to an Ultragaz reseller, the consumer receives two biodegradable bars of soap. Part of the collected oil goes towards making biodegradable soap and another part is directed to the production of biodiesel.
The campaign began, in 2014, in Caucaia (CE) and also in the capital and rural cities of the state of São Paulo. In 2015, the campaign was extended to more cities in São Paulo State, involving municipalities around Santos and São José dos Campos. By the end of 2015, more than 300 thousand liters of oil had been collected in more than 175 thousand Brazilian households, with the participation of 219 Ultragaz resellers. For 2016, the intention is to involve resellers in Salvador (BA), Porto Alegre (RS) and Belo Horizonte (MG).
The Ultragaz Cultural project, created and maintained exclusively by the company, seeks to promote and disseminate culture among young people and children of different communities through educational events. Ultragaz Cultural uses tax incentives from the Rouanet Law and has the support of the Departments of Education and Culture, as well as the city halls of the municipalities where it is present. It has already won the Top Social ADVB 2008 and Marketing Best Social Responsibility 2008 awards.
Between 2008 and 2014, it took cinema and theater to 125 thousand people in 22 Brazilian states. In 2015, the Ultragaz Cultural project acquired a new format: in addition to movies and theater, it offered educational workshops to more than 12 thousand children from public schools and institutions across the country. The theme explored was water and the need to preserve natural resources.
In total, 13 states were visited through this project. The presentations took place in a mobile tent set up in public spaces.
During 2015, Ultragaz promoted guided visits of resellers to the first Ultragaz Sustainable Reseller, launched in 2014, in Bela Vista, São Paulo (SP).
During the visits, resellers were able to learn a bit more about the Sustainable Reseller items and received a booklet with instructions on the installation of a cistern for capturing rainwater. The opening of a new store is planned for 2016 in the city of Fortaleza (CE). In addition, two more units are being planned: one in São Paulo and another in Salvador (BA).
children participated in educational workshops in 2015
people went to the cinema and theater in 6 years