As discussed in last month's issue of Jobbers World, word on the street is that ExxonMobil is spending a good deal of its time and energy on what is being called the "Distributor Model of the Future," or DMF. It's not necessarily a new model. Instead, it's a model reportedly patterned on the dealer and distributor models used by Caterpillar and Anheuser- Busch to roll-up and leverage greater control over their fragmented and inefficient distribution networks. These models share a common thread in that they are about building a highly efficient and cost effective distribution system comprised of exclusive dealers/distributors dedicated to a single brand.

An estimated 2 billion pounds of antifreeze/coolant concentrate was manufactured in North America in 2004. Nearly 80% of the total was aftermarket product used in the cooling systems of cars and trucks. The price of this aftermarket coolant ramped up sharply in 2004 and is now approaching $10.00 a gallon at the retail level. As discussed in the November issue of Jobbers World, the primary reason for the increase is robust demand for ethylene glycol (EG) in the Asian textile market and a reduction in global refining capacity. The result of these opposing forces continues to be a very tight supply of ethylene and propylene glycol and inflated prices for coolant, which is nearly 95% glycol. Although lubricant marketers usually have little choice but to pay the higher price for coolant and pass the increases on to their customers, they do have one option that can help them soften the blow, and even capture a competitive edge. That option is to bring recycled coolant into their product line.

Hear what the experts have to say about how marketers can save money and avoid the pitfalls with recycled coolants.