IN THE NEWS / Suncor Pooh-Poohs Petro-Canada ads
'Proud to be Canadian': Questions PetroCan's winter know-how
By CLAUDIA CATTANEO
The Financial Post
Officially, they're not angry. Unofficially, the folks at Suncor Energy Inc. are a little non-plussed by Petro-Canada's latest TV commercials, which tout Petro-Canada as the only Canadian firm among the four major oil companies that sell gasoline in the country.
While reluctant to stir up a controversy and seem unneighbourly -- Suncor's headquarters are a block from and in full view of Petro-Canada's in downtown Calgary -- Suncor says its record speaks for itself.
By most measures, Suncor is one of Canada's four largest oil companies with upstream operations such as exploration and production and downstream operation such as refining and marketing. It sells gasoline from 322 Sunoco stations in Ontario, which it has operated for 75 years, not to mention part interests in independent retailers.
"It's fair to say that many eyebrows at Suncor have been raised" by the Petro-Canada campaign, said Suncor spokesman Ron Shewchuk. "We are proud to be Canadian and we are proud to be a major oil company."
The ads want to convey that Petro-Canada's SuperClean Winter Gas formula is better than any one else's because Petro-Canada, as the only Canadian company among the majors, has more experience at designing products for the harsh Canadian winter, said spokeswoman Eleanor McMahon.
The winter fuel contains gas-line antifreeze. However, Sunoco also has a winter gas with ethanol, which acts as an antifreeze.
"Because we are Canadian, and because we drive in winter conditions, and because our world headquarters is here, we think that, along with that, comes a certain expertise in driving in Canadian conditions and in the Canadian winter," Ms. McMahon said.
The commercials open with a totally white screen.
"There are four major oil companies that sell gasoline in this country," an announcer says.
"Two have their world headquarters in Texas, one in Holland and one, the one you're looking at right now, in Calgary, Alberta.
"Now, which one do you think has a better understanding of what you have to drive through this winter?" the announcer asks.
"SuperClean Winter Gas. Only from Petro-Canada," the announcer says. "You have to live here to get it."
The campaign was created by Cossette Communication-Marketing of Toronto.
While not specifically mentioned, Petro-Canada says the two companies referred to in the commercials with world headquarters in Texas are Exxon Corp., based in Irving, and Ultramar Diamond Shamrock Corp., based in San Antonio. The Dutch company is Royal Dutch/Shell Group NV.
Petro-Canada officials said Suncor, based in Calgary, was omitted because its retail presence is small and limited to Ontario.
London, Ont.-based Kent Marketing Services Ltd., which tracks retail gasoline market share across Canada, says there are three national retailers with refining operations: Esso, with 19.9% of the retail market, Petro-Canada with 18.9%, and Shell with 16.4%.
There are also two regional retailers with refining operations: Ultramar, with gas stations in Quebec and a 5.8% market share, and Sunoco, with stations in Ontario and 5.1% of the market.
"When we see this advertisement in an Ontario context, we are more puzzled than anything, because there are no Ultramar stations in Ontario, but there are Sunoco stations," said Mr. Shewchuk.
Esso and Shell, too, could have a bone to pick. Canada's Esso stations are owned by a Canadian company, Toronto-based Imperial Oil Ltd., the country's largest, which is 70% owned by Exxon.
Shell stations are owned by Shell Canada Ltd., a Canadian firm based in Calgary that is 78% owned by its Dutch parent.
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