In Focus: Shell V-Power™ bolsters Marketing earnings growth
Harnessing the strength of the energy sector’s leading brand, Shell has the most successful Marketing business in the industry. Differentiated, premium fuels have been a key ingredient in the recipe for success.
Twenty years ago, Shell V-Power™ changed the belief that all fuels are the same. We established a new category of fuel. Shell V-Power™ has continued to grow in popularity ever since and we plan to grow our premium fuel category further.
The Shell V-Power™ story begins in the technological melting pot of Formula 1. Demand for greater power and fuel efficiency from Shell’s innovation partner, Scuderia Ferrari, led to the development of a racing fuel that has 99% the same types of compounds as the Shell V-Power™ unleaded fuels customers can buy on Shell forecourts.
We estimate that Shell V-Power™ is now the best-selling premium fuel in the world1, delivering high performance for our customers and attractive margins. It sets us apart from the competition and has strong impact on our bottom line.
In 2017, about 20% of our branded fuel sales volumes were Shell V-Power™.
Our innovation partnership with Scuderia Ferrari and other world-class brands, including Ducati Motors, also provide the opportunity to create powerful joint marketing and promotional campaigns.
The UK fuel market provides a relevant case study. Despite the launch of differentiated fuels by traditional competitors BP and Esso – and some of the larger hypermarket chains – Shell’s share of the premium fuels market remains at close to 60%.
In key growth markets where we are expanding our Retail networks, Shell V-Power™ is the fuel of choice for a growing number of motorists. In Indonesia, for example, we are already seeing more than 30% penetration of our total fuel sales which exceeds our global average.
Shell V-Power™ is a key driver of our profitability in marketing and intimately links our brand to technology and innovation. We are confident this success story will continue.
1 Shell estimate based on number of markets selling Shell V Power™ and extrapolated from public data where available