New long-life antifreeze should rev sales and skus

Discount Store News, April 15, 1996 by Richard Halverson

Nationwide DSN Report - In response to new General Motors specifications for longer-lasting antifreeze for its '96 models, major manufacturers, including Prestone, Texaco, Peak and soon, Zerex, have developed new formulations that eventually will add to retailer skus.

In addition to its new long-life antifreeze, Prestone also is coming out with a "green" antifreeze called LowTox, to compete with Sierra. For the past two years, Sierra has been the only brand of antifreeze in national distribution that makes claims of being safer than normal antifreeze, thanks to a formulation based on propylene glycol, which is non-toxic.

Conventional antifreeze based on ethylene glycol, which is toxic. But in use, even propylene glycol antifreeze picks up lead and other poisonous metals, so Sierra, in a consent decree with the Federal Trade Commission last August, pulled back from calling its product absolutely safe for the environment, and now says that its product is "safer." Prestone said its new propylene glycol antifreeze has low toxicity, rather than being non-toxic.

Texaco is calling its new long-life antifreeze Havoline Extended Life Anti-Freeze/ Coolant. Zerex has yet to name its long-life formulation, still under development.

Peak, a supplier to Sam's Club and PriceCostco, calls its product Peak Extended Life. In clubs, its price will be about $6, or close to $2 more than its standard formulation.

Prestone considers LowTox antifreeze a niche product, with about 2% of the market, said Rodney Carnes, director of marketing. LowTox and Prestone's long-life product, Long-Life 5/100, will sell at premiums over conventional antifreeze - about $1 more per gallon for LowTox and $2 more for LongLife 5/100.

In another brand extension, Prestone is coming out with a product to winterize the water systems of recreational vehicles, called RV Antifreeze, also based on propylene glycol.

Prestone previously was marketing a longer-life antifreeze designed to last for four years or 60,000 miles, but will drop that product in favor of LongLife 5/100, which will last five years or 100,000 miles to meet the new specs of General Motors.

So far, Ford and Chrysler have declined to follow GM's lead in specifying 5/100 antifreeze for new cars.

Kmart dropped the Prestone 4/60 long-life version for lack of consumer interest, a spokeswoman said. Kmart now is reviewing its antifreeze program for a mid-year set, so it hasn't reached a decision on stocking long-life formulations.

Over time, demand will build for a 5/100 replacement antifreeze in order for car owners to keep new car warranties in effect.

But for a product designed to last five years, that consumer demand will build slowly, with immediate interest mainly in replacing antifreeze lost through accidents or blown radiator hoses, said Frank Apple, a manufacturer's representative based in Baltimore, Ohio. Once consumers start to buy more long-life antifreeze, retailers will have to start carrying the products and dedicate shelf space to them. For the immediate future, long-life will capture a 15% share of the do-it-yourself aftermarket (now running about 120 million gallons a year), he predicted.

Despite the additional skus, shelf space isn't expected to be a major problem because antifreeze is a seasonal stackout commodity item, and discounters devote minimal space to it year-round.

The Wal-Mart store in Tom's River, N.J., for example, gave 4 linear ft. to antifreeze last month, and its shelves were completely bare. When in stock, standard Prestone sells for $5.88 a gallon; Zerex, $4.87; private label Wal-Mart brand, $4.67; and Sierra, $6.88.

Kmart devotes as little as 2 1/2 linear ft. and as much as 5 linear ft., depending on the store. It stocks Prestone, Sierra and its private label Motorvator brand at prices set competitively store by store, a spokeswoman said.