What the gas station of tomorrow will look like ? How do we move from a traditional place of fuel sales to a “place of life” where the very notion of a store is outdated ? This vision, it is that of the Vivo Energy group, which has just merged with the South African company Engen to become the leading energy supplier on the African continent, present in 28 markets, including Reunion. It is with enthusiasm that the general director of Vivo Energy Réunion, Mayess Marrakchi, explains and comments on the implementation of this pioneering strategy. The Engen service station network, under renovation, is today in Reunion the most advanced in this change. Aiming to be not only the most efficient network, but also the favorite of Reunion Islanders, Engen implements a completely redesigned station concept, including new services, like catering, and combining eco-responsibility and the energy transition. Engen is already the only network to offer a loyalty program in Reunion. Automotive side, the imperative of agility and flexibility is the same. Today, fossil fuel, LPG for professionals, charging of hybrid and electric vehicles ; tomorrow, who knows, hydrogen recharging or any other automotive technology : the station according to Engen is designed to be able to adapt to all future developments and energy needs. Also for the Vivo Energy Réunion team, the installation in September in its new headquarters at the Port has symbolic value : the century-old network, heir to the first service stations in Reunion Island, is at the cutting edge of modernity.
do a little history to recall how the Engen brand was established in the Reunion landscape ?
Mayess Marrakchi : The presence of our company dates back more than a hundred years in Reunion Island. It all started in 1922 with Caltex, which was the first company to set up on the island, through a commercial agent of the Macé family group. The first gas stations were created. Thereafter, Texaco, who operated the Caltex brand, consolidated this presence before merging with Chevron in the 2000s. Caltex has experienced strong growth in Reunion as everywhere in the world. In 2011, Chevron sold its Reunion activities to the South African group Engen, which took over the network of service stations by modernizing it. It is to this great heritage that we owe the strong local anchoring of our brand., with a dense network, well established, at strategic locations, in the heart of cities, close to the population. This link with the Reunionese population, and the importance we attach to this proximity, are our strength and our particularity. Engen, Today there are 35 service stations in all municipalities.
What links unite Engen to Vivo Energy ?
Vivo Energy is a fairly recent group. It emerged at the end of 2011 when the oil giant Shell decided to divest from distribution activities in Africa.. Shell chose to focus on the production and exploration part, without losing its brand and its presence on the markets as a distributor of fuels and lubricants. The two major Anglo-Dutch players in the oil sector, Shell et Vitol Group, which is one of the leading oil trading companies in the world, have created a joint venture for distribution, le marketing, transportation and retailing of hydrocarbons. On the African continent, with the creation of Vivo Energy ; on the Australian continent, with the creation of Viva Energy. In Africa, the brand's standards in terms of safety and customer service having been perfectly preserved, it appeared to the shareholders that it was no longer necessary for Shell to be present in the shareholding. A licensing contract with Vivo Energy made perfect sense to continue developing the brand. Vivo Energy started in 2011 in 15 markets. In 2019, the South African company Engen wishes to sell nine of its subsidiaries, including those of Reunion, Vivo Energy acquired it. Engen Réunion became Vivo Energy Réunion. The last important step is very recent : this is the merger of Vivo Energy and Engen South Africa in May 2024. Thanks to the acquisition of Engen, the Vivo Energy group has reached a strategic milestone. It is present today in 28 markets, has more than 3,900 service stations and more than two billion liters of storage capacity. It is the leading pan-African distributor and retailer in the market for high quality fuels and lubricants., under the Shell and Engen brands. Vivo Energy is the second largest company on the African continent.
What does Reunion represent?, small territory compared to large African nations, for the group ?
You should know that Vivo Energy is also present in Mayotte, Madagascar, Maurice. In the group's vision, which is to be the leading and most respected energy company in Africa, Reunion Island represents great opportunities due to its diversity, its geographical proximity to the African continent and a high level of requirements taking into account the French and European standards in force.
What is your position on the Reunion market and what objective are you pursuing locally? ?
Between its network of 35 service stations and its B to B commercial activities, Vivo Energy Réunion represents 25% market share. In this market, we were able to regain the position we had in 2019, before the Covid crisis. We pursue a goal of growth and innovation. Our investment strategy, the implementation of new concepts, the modernization of our stations, continuous improvement of our service offering, which aim to meet the needs of Reunion Islanders, are the local variation of the group's vision that I was talking about : to be the leading and most respected company in the energy sector in Africa and the Indian Ocean region.
Is Africa a battleground for oil companies? ?
Si Vitol, our majority shareholder, world leader in energy trading, decided in 2011 to invest and develop because Africa is the continent that will experience the strongest growth in the next thirty years. All economists and statisticians in the world agree on this point.. This development is based on three main axes. Demographics : some African countries will become among the most populous in the world, like Nigeria. The economy : the African continent forms a very diverse group of countries with very different developments and ways of consuming, but all these countries have the desire to develop with their specificities. The third point, these are the infrastructures that are developing. Pour Vivo Energy, being present and investing in sectors as sensitive as the energy sector is obvious. It is also a very big responsibility. Vitol invests in renewable energy production projects : wind power, solar, biofuels. Vitol is also developing infrastructure for alternative fuels, like hydrogen, and electric charging stations.
The Reunion fuel market is characterized by controlled prices and centralized supply managed by the SRPP. What do you think of this system? ? To your knowledge, is it unique ?
The energy sector is always sensitive to the economy of a territory. In general, there is always a certain level of supervision, of rules, of standards, de process, which are in place. The framework in which energy distribution companies operate differs from one country to another. Types of supervision range from one extreme to the other. Reunion is not in these extremes. On the one hand, you have the European system, of mainland France, countries where the supply and sale of fuel is completely free and deregulated while meeting certain quality standards. At the other end, you have completely regulated markets, both for the supply and sale of products. In the middle, you have countries where supply is regulated and prices are deregulated, or the opposite. Reunion is a market where supply is deregulated, but the regulated price : it is the subject of monthly prefectural orders. This system exists elsewhere than in Reunion. In the French West Indies for example. This system guarantees price stability and security of supply. I think this is also a way, for public authorities, to control inflation.
Where do the fuels distributed in Reunion come from? ?
In collaboration with state services, oil tankers are united in consortium. We buy the product together in order to benefit from the best costs, to ensure security and continuity of supply and guarantee product quality. Fuels distributed in Reunion, diesel and unleaded, mainly come from Singapore, one of the largest refining hubs in the world. Crude oil is refined to specific European Union standards, which apply to Reunion. Supply is managed every year by an open and public call for tenders.. Singapore remains our preferred source because it has the best combination in terms of geography, of costs, security of supply and quality of fuels.
How is the Reunion fuel market doing in 2024 and how do you see its evolution in the years to come? ?
The Reunion market is at a crossroads, with demographic growth and therefore evolving needs, infrastructures that develop and adapt to the progressive penetration of hybrid and electric and to developments in automotive technology. With also the European desire to stop the marketing of thermal vehicles from 2035, and the classification of Reunion Island as a UNESCO World Heritage Site. Reunion Islanders are attached to their car, but just as much to their island and its natural environment. Consequently, acting and evolving in the direction of reducing greenhouse gases is a priority for Reunion Island. That said, the market remains mainly thermal ; the electric vehicle fleet today represents between 2% and 3% of the total fleet. But it evolves each year with strong growth in new registrations of electric and hybrid vehicles.. It is a more or less stable market where each other is compensated, on the one hand, the growth of the thermal vehicle fleet and, the other, that of electric and hybrid vehicles. At Vivo Energy Réunion, we are following this very closely. We are already diversifying our services with the installation of charging stations for electric vehicles, the deployment of photovoltaic panels on our stations and the introduction of new offers. We also have a gas distribution activity. Vivo Energy Réunion bought Petredec Réunion last year, the owner of the yellow Gaz Petregaz bottles, distributed in Engen service stations. We are therefore present in all areas of energy. And this transition is part of a gradual change in our business model to meet the needs and expectations of Reunion Islanders.. Tomorrow, if technological innovation allows it, we will deploy new sources of energy.
What paths is the energy transition taking at VER? ?
We reduce our carbon footprint by taking initiatives internally and externally. An internal, I will mention our new eco-responsible headquarters, energy consumption reduction devices and a fleet of hybrid or electric vehicles. And external, in addition to the installation and commissioning of photovoltaic panels on the roofs of the stations, we opened the eco-responsible Beauséjour station, we invest in car wash gantry cranes that recycle the water they use. We have already installed 26 charging stations for electric vehicles, some of which run on solar energy. We are also very active in the regulatory system for energy saving certificates, which oblige electricity suppliers, of gas, of fuels, to finance energy efficiency actions among consumers. This mechanism contributes to the energy transition by encouraging investments in less energy-consuming solutions.. Work and equipment promoting the control of energy consumption are thus enhanced by a financial contribution from Vivo Energy Réunion.. Investing in the economy and projects in Reunion, this is the strategic choice that Vivo Energy Réunion made to provide subsidies for the benefit of the local economy and the people of Réunion.
What is an eco-friendly gas station? ?
Engen station in Beauséjour, inaugurated in 2018, is the only service station in Reunion certified by the ISO 50001 energy efficiency standard. This station was designed with eco-responsibility in mind.. First there is the eco-design of the building which is inspired by a modern Creole kaz, with its green spaces planted with endemic species. This building uses natural ventilation, it is without air conditioning. Photovoltaic panels power the electric charging station and allow it to be energy self-sufficient. The Beauséjour station consumes more than 20% less energy than a traditional station. It is also eco-responsible in its water management.. Its washing gantry recycles 80% of the water, saving 90 liters per wash. Several of the concepts tested at the Beauséjour station are implemented in other Engen stations. This is the purpose of the work on our network of stations, which include building insulation, water management for vehicle washing and the installation of photovoltaic panels for electric charging stations.
You are also committed to a corporate social responsibility policy ?
Vivo Energy Réunion even stands out for its commitment to diversity, the well-being and personal development of its employees. Our team made up of around forty employees, including five work-study students, achieved parity with 50% women in total, et 62,5% in its extended management committee. We make diversity a performance lever. The year 2024 marks an intensification of training efforts with 46 actions planned, i.e. 24% more compared to 2023. Quality of life at work is a priority : workshops on themes such as “Dare to be assertive”, managing emotions, yoga or even health breaks are regularly organized. We have an annual team building event. The company promotes well-being through other initiatives, such as the contribution to encourage employees to practice a sporting activity or cultural outings. Women's Rights Day is a significant event for us, with celebrations around inspiring female figures and solidarity actions to fight against menstrual poverty, for example. Finally, the Vivo Energy group's W@ve program supports gender diversity through career management actions, balance between professional and personal life, mentoring and creating an inclusive work environment.
O’ Tacos in Bras-Fusil, G La Dalle au Cauldron,McDonald’s in L’Étang-Salé… Vivo Energy is developing a “living place” service station concept in Reunion Island which goes further than that of a store by integrating fast food offers. Can you describe this expanded view of the gas station ?
It is essential, for a company like ours which aims to be a leader in its field, to be a pioneer and innovate by implementing additional services. Avant, the gas station, it was the fuel. Today, it’s fuel and local commerce. Tomorrow, as we see it, it will be a friendly space, a pleasant place offering a certain number of multidisciplinary and diversified services for the client. It will be a “service station”. Fast food has its place in creating a place to live. She is, for us, of two types depending on the environment of the stations : either in partnership with renowned brands who have their know-how, each adapted to the point of sale, either with concepts that belong to us, allowing us to offer broader catering services covering fast food, search, en-cas, salad bar, but also breakfast pastries, etc. All this has been carefully analyzed, prepared, anticipated. The satisfaction studies that we have carried out on our first implementations report very positive feedback from customers..
Engen wants to become the preferred service station network of Reunion Islanders. The brand is the only one to offer a loyalty card in Reunion Island.
End of September, the new Engen service station in L’Étang-Salé, integrating a McDonald’s food outlet, was inaugurated by the CEO of the Vivo Energy group in person, Stan Mittelman. What meaning to give to his presence ?
This was the second visit of Mr.. Mittelman on the island. He was able to appreciate the progress and development of Vivo Energy in Reunion since his first visit in July 2022, a few months after he took office. This year we had two great events to share with Stan Mittelman, who was accompanied by Peyami Oven, our executive vice-president for the Maghreb and the Indian Ocean. Firstly, the inauguration of the lighthouse station, very important, of L’Étang-Salé, which has been completely renovated with new services and a diversification of the offer. On the other hand, the inauguration of our new head office which marks the evolution and anchoring of Vivo Energy in Reunion. We have been in these new premises since September. The presence of senior management reflects a desire to be close to operations.
Excluding petroleum products, Do the managers of your stations go through a purchasing center to supply the stores or are they free to choose their offer? ?
Our managing tenants, like our owner managers, are free to choose available and legal supply circuits. On the other hand, we have a specific Boutique department, who works to improve and optimize the product assortment. It is a support and support service for service station managers.. It analyzes sales to identify trends, advises managers on their assortment, negotiates with suppliers to offer the best prices, brings the link between local commerce and its customers to life through activities and events. This ties in with what I said previously. : we are experiencing a turning point in our history as a distributor. The concept of fossil fuel service stations must be rethought with the aim of sharing with our customers a warm and useful life experience for their daily lives.. This is why important work on our brand presence, with strong promotional and image campaigns, as well as increased visibility in the media, is engaged. Engen positions itself as the preferred service station network of Reunion Islanders, thanks to its proximity to and commitment to the local community.
Engen offers the MyEngen loyalty card : prices being the same everywhere, Is it more difficult in Reunion than elsewhere to build customer loyalty? ?
The loyalty program, with the MyEngen card, is a third lever to achieve our ambition. Indeed, building customer loyalty is a real challenge. Today, we are the only petroleum product distribution operator on the island to offer a loyalty program valid across an entire network of service stations. It is a key tool for differentiation and brand preference. Also available via a mobile application, MyEngen card offers exclusive promotions and gifts in partnership with local suppliers.
Vivo Energy Réunion is also present on the B to B market. What do you offer to professionals ?
Retail activity is the visible part of the iceberg. We are a major player in what we call commercial. We sell to a large professional clientele, public or private, to which we offer a fuel card, the 1—Card, to refuel at the 35 stations of the Engen network on the island. It makes it possible to optimize, monitor and analyze the consumption of vehicle fleets. Existing now for several years, the 1—Card ensures a significant part of our business volume on the network. B to B customers, with us, rather corresponds to the carriers, to construction companies, construction and other industrial operators. We offer companies contracts adapted to their specific needs, even if it means supporting them through the installation and maintenance of petroleum equipment. To complete this table, we also have a strong presence in the aviation and marine sectors.
The economic activity of Reunion Island is mainly focused on mainland France and Europe.. Its proximity to Africa takes second place. As a representative of a pan-African company, what feeling does this paradox inspire in you? ?
Africa, it’s 54 countries, 54 cultures. The fact that Réunion is more connected to France does not make it, for us, an exception in itself. We adapt to different contexts. Each of our subsidiaries pursues the same objective of best meeting the needs of local customers in strict compliance with the laws in force and a high level of internal standards..
Vivo Energy Réunion made the announcement, a few weeks ago, of its partnership with the tennis champion of Reunion origin Emmanuelle Girard..
Yes, this is part of our commitment outside the walls of the company. Emmanuelle Girard, young talent from Reunion tennis, is the brand ambassador of Vivo Energy Réunion. Vivo Energy has also initiated other partnerships with sports ambassadors, like rugby stars in South Africa, highlighting the group's constant support for local communities and its desire to promote a spirit of unity, of perseverance and excellence.
At the forefront of sustainable development and excellence in Reunion
Mayess Marrakchi, engineer by training and expert in business development, intends to embody leadership and performance in the service of the people of Reunion Island. With a rich and varied career within a renowned international group, Vivo Energy, which it has integrated since its creation in 2011, he knew how to evolve in technical functions, commercial, marketing and sales development, while managing strategic projects and global activities. His career is distinguished by an ability to transform challenges into opportunities. Whether to develop a product line on an international scale or sit on management committees, he has always favored excellence, innovation and teamwork. Appointed general manager in Reunion since June 2023, Mayess Marrakchi puts its expertise and vision at the service of the island. Its philosophy is based on three pillars : continued development, implementing an appropriate strategy, and the creation of a strong collective dynamic through coaching and talent training. “My mission is to combine performance and proximity, by helping to improve the daily lives of Reunion Islanders while strengthening the group’s activities locally”, conclut Mayess Marrakchi.
