With this message, Ipiranga communicates the “One-Stop Service Station” concept reflecting a differentiation strategy based on the diversified offer of products and services which goes beyond the distribution and sale of fuels and lubricants alone.  

Ipiranga pursues constant innovation in service station services and convenience to facilitate the daily routine of people on the move. As with Ultra, the company is commemorating 80 years of history in 2017.

When the focus is on retail, one of the flagships of Ipiranga’s strategy is the am/pm store, at the end of 2017, ranking as the largest network of convenience stores in Brazil with 2,415 units located in the company’s service stations, an increase of 11.5% year-over-year. With 250 franchises opened in 2017 alone, the ratio of service stations with an am/pm store has surpassed the 30% mark. Most new service stations now start operations already with a convenience store franchise. Other convenience services in the period were also expanded with the rollout of 179 bakeries, 116 beer cavesand 141 Jet Oil franchises.

During the year, Ipiranga innovated with differentiated configurations of am/pm stores for expanding the offer of products, services and convenience. Urban-based service stations have an am/pm store with an expanded configuration concept similar to neighborhood minimarkets, offering fresh products, a flower store and more quick meal options. Conversely, for highway service stations, the am/pm Estação configuration has been introduced with extensive dining area, lounge, kids space, family restrooms among other services for travelers. Both the cities of São Paulo and Rio de Janeiro have am/pm units with the expanded configuration while the am/pm Estação format has been installed at a service station on the Presidente Dutra Highway in the state of São Paulo.

In line with the “One-stop Service Station and increasingly more Digital” concept, Ipiranga is innovating with the digitization of services for greater customer convenience and a series of digital initiatives. One of these is the Fill up There (Abastece Aí) app, offering payments for fuel and exclusive discounts via mobile devices. Already responsible for more than 1 million downloads in around two years, this technology is designed for integration of platforms offering greater customer convenience.

Associated to all this, the company’s services and products are offered with a direct link to Ipiranga’s relationship platform, the Km of Advantages (Km de Vantagens) loyalty program, the largest of its kind in Brazil. Km of Advantages offers a wide range of benefits including airline tickets, admissions to the cinema, shows, soccer games and discounts on fuel purchases, among others. The Km of Advantages loyalty program had a total of 26 million members in 2017. In one initiative which integrates the Ultragaz and Extrafarma businesses, it is also possible to exchange km (points in the program) for purchases from the two companies.

3,051

employees

442

new service stations in the network, now numbering more than

8 thousand

units

74

proprietary distribution bases or pools
(association with another company)

Principal products and services

Fuel distribution: 8,005 service stations.

am/pm stores: the largest network of convenience stores in Brazil with 2,415 stores offering a differentiated range of products and services both highway- and city-based.

Lubricants: a diversified line of products for automotive, industrial and maritime use. Since December 2017, Ipiranga has a strategic partnership with Chevron.

Jet Oil: the largest automotive services network in Brazil with 1,735 units.

Octapro: high octane gasoline launched in 2017, contributing to maximum engine power and improving vehicle drivability.

Km of Advantages: Ipiranga’s loyalty program with 26 million members.

Fill up there: cell phone app, available for Android and iOS systems, allowing the client to obtain discounts on fuel purchases and accumulate km (Km of Advantages points).

See more on Ipiranga’s products and services in: Portal Ipiranga.

Ipiranga has associated with the US company Chevron in the ICONIC Lubricants joint venture for developing, producing, distributing and sale of lubricants, greases, fluids and coolants of both companies in Brazil. Announced in August 2016, the operation was approved by the Brazilian Anti-Trust Authority (Cade) in February 2017. Following an integration phase, in December 2017 each partner contributed the relevant assets to formalize the association, ICONIC Lubricant branded products being launched on the market in January 2018.

The new company has three production units, 700 employees, 30 Distribution Centers and a network of 50 Authorized Distributors. With a portfolio of more than 1,300 products, ICONIC comes into existence already a market leader in lubricant sales with the Ipiranga and Texaco brands, references in the market and available throughout Brazil. Sales go to clients in various segments – such as industry in general, large consumers, vehicle assembly, maritime clients, plants and the Ipiranga Service Station network.

Under the agreement between the two companies, Ipiranga holds a 56% stake and Chevron, 44% in the joint venture. With this association, the operations of both companies are strengthened in the competitive Brazilian lubricants segment by the complementary nature of the partners’ channels and products and greater efficiencies in production, logistics and sales.

In 2017, Cade also announced its decision on the negotiations with the ALESAT fuel retailing business, not authorizing the acquisition. In the light of this decision, Ipiranga’s team swiftly revised its business plan to ensure the company’s continued ability to meet objectives.

The company has expanded its Committed Ipiranga Supplier Program which incentivizes good practices and sustainable, ethical and transparent conduct in the relationship with suppliers. Participants use a primer which covers socio-environmental and business matters, available in Ipiranga’s website, and take part in training sessions and workshops on the theme. Training also includes participants’ inhouse teams that play an important role in the development of the Ipiranga supply chain.

The São Cristóvão (RJ) lubricants plant for example, held its first suppliers workshop for promoting continuous improvement in the relations between the company and its partners. The workshop presented criteria for evaluating suppliers, case studies of success and developments in the establishment of the joint venture between Ipiranga and Chevron.

Ipiranga runs the Retail School for qualification of resellers, franchisees, authorized lubricant distributors, large corporate clients, suppliers and their respective teams. Programs offered include training in products, services, sales, management, the opening of franchises and consumer service among others, the company providing all support necessary so that these segments can effectively transmit the benefits and differentiations of the brand at the point of sale. 

Underscoring its ethical principles, in 2017 Ipiranga University held Competitive Compliance workshops for 23 groups totaling 600 resellers on competition law in business.

Ipiranga’s social investments focus on educational projects. One of the initiatives in this area is the Ipiranga Volunteer Program for contributing to important social causes through the mobilizing of volunteer employees and giving time for work in institutions surrounding the company’s premises. During 2017, 42 volunteers from the company took part in 18 initiatives under the Internal Volunteer Worker Week which is held annually at the São Paulo, Porto Alegre and Rio de Janeiro units. During the year, more than a thousand public school students enjoyed the benefit of the program.

Another key action was Ipiranga’s participation in the “1 ^st Gas and Petroleum Volunteer Worker Sectorial Project”, the result of a joint effort between the Brazilian Petroleum, Gas and Biofuels Institute and 11 sector companies for making the “Advantages of Staying at School” project a viable proposition. The project involved 12 schools, impacting more than 1,400 students in the Rio de Janeiro public school system along with 85 volunteers.

Launched at the end of 2016, the Friendly Gas Station (Posto Amigo) campaign gained increasing traction during 2017, raising awareness and engagement among Ipiranga service station resellers. The objective of the campaign is to encourage service station owners to adopt initiatives to the benefit of people and the environment in the surrounding communities. All communication is online by e-mail and details of the campaign are published on the Ipiranga network’s portal. Among the initiatives are: donation of used books, animal donation fair, food donations and the winter clothing campaign.

See the social responsibility initiatives of Ipiranga in its website