Viva Energy Group Business Model Canvas

Third‑party operators run over 1,100 Viva Energy service stations, expanding footprint with variable capital intensity and lower fixed costs for the group. Partnerships with convenience retailers and foodservice brands boost site economics and basket size, often raising in‑store sales by double digits. Structured agreements align incentives on volume, service and safety, while co‑investment models accelerated network upgrades in 2024.

Viva Energy’s key partners secure global crude for the Geelong refinery (Australia’s second‑largest), provide hedging/credit and market intel to manage margins. Shell branding (access to Shell specs and loyalty) supports retail premiuming; Shell operates about 44,000 sites globally. Third‑party operators run ~1,100 Viva stations; logistics partners underpin national distribution as Australia imported ~95% of transport fuels in 2024.

Expand and upgrade around 1,200 service stations to lift forecourt throughput and shop conversion, targeting higher margin convenience sales. Deploy dynamic pricing, promotions and the Shell Go+ loyalty program (over 6 million members in 2024) to drive same-store growth. Invest in digital payments, EV charging pilots and forecourt tech pilots to future-proof sites. Optimize site mix between company-operated and dealer-operated models to improve return on capital.

Operate Geelong Refinery (≈7.5 Mtpa / ~150,000 bbl/d), optimize margins, energy and emissions (net zero by 2050). Manage national terminals and logistics to supply >1,000 retail/wholesale sites and ~1,200 service stations, maintain 24/7 resilience. Grow forecourt convenience, Shell Go+ (>6 million members in 2024), EV pilots and B2B fuel solutions (JIG-compliant).

Viva Energy’s retail network of around 1,900 Shell-branded service stations delivers broad consumer reach across Australia. Forecourt equipment, POS systems and the Shell Everyday Rewards loyalty integration capture transactional data and drive throughput. Prime roadside locations held under long-term leases provide multi-year demand visibility. Strong Shell branding and merchandising support premium pricing and margin resilience.

Geelong refinery (≈7.5 mtpa / ~150,000 bpd) plus >1.0M m3 storage and 25+ coastal terminals secure supply; ~1,900 Shell-branded sites provide national retail reach. Long-term B2B contracts and SCADA/ERP systems stabilise cashflows and logistics. Skilled workforce, HSE certifications (ISO/API/ADR) and leased prime sites underpin resilience.

Shell-branded sites deliver clean forecourts, fast service and secure payments, reinforcing trust across Viva Energy’s network of around 1,900 Australian sites in 2024. Loyalty program Shell Go+ and targeted promotions drive measurable savings and repeat visits, boosting average basket value. Co-located convenience retail increases trip value for time-pressed consumers and simplifies route planning for drivers.

Viva Energy ensures nationwide availability via about 1,900 Shell sites and resumed domestic refining in 2024, improving supply resilience. Products meet aviation‑grade specs with continuous QA/QC to reduce equipment downtime. B2B offers tailored logistics, SLA-backed service and index-linked pricing (Brent avg US$86/bbl in 2024).

Apps, portals and e-invoicing streamline ordering and payments, cutting invoice processing costs by up to 60% and accelerating cash flow. Real-time delivery updates feed into logistics systems, reducing stockouts and improving planning accuracy. A central customer care team handles queries and complaints 24/7, routing complex issues to specialists. Continuous feedback loops capture NPS and CSAT data to drive iterative service improvements.

Viva Energy drives repeat fuel and convenience sales via 2024 Ampol–Woolworths Rewards integration and targeted price incentives, using transactional data for segmented marketing and dynamic promotions. Dedicated account teams and technical advisors support ~1,900 Shell-branded sites, with 24/7 central care, joint safety audits and a 2024 Sustainability Report bolstering trust and compliance.

On-airport into-plane operations deliver jet fuel safely and on time, supporting global jet fuel demand of about 7.8 million barrels per day in 2024; close coordination with airlines and ground handlers aligns refueling windows and flight schedules. Compliance with Joint Inspection Group (JIG) and airport standards is mandatory, and operational reliability (on-time delivery and safety) differentiates Viva Energy Group’s service.

Viva Energy’s channels combine a 1,900-site Shell retail network (Australia, 2024) with dedicated B2B sales supporting >1,350 commercial accounts, on-airport into-plane services and 1,600+ third-party distributor sites for last-mile reach. Digital apps, email (≈36:1 ROI) and mobile (≈70% of interactions) drive loyalty and seamless payments. Contracts use KPI targets (eg 99% delivery compliance) to secure service reliability.

Domestic and international carriers demand into-plane fueling, strict quality assurance and logistics certainty; Viva Energy supplies aviation fuel at Australia’s major airports and supports coordinated scheduling. Airlines value long-term contracts for supply stability as jet fuel typically represents about 20–30% of operating costs. Carriers remain sensitive to jet fuel market volatility, which drove sharp price swings since 2021 and influences hedging and procurement decisions in 2024.

Viva Energy serves retail motorists (~1,300 service stations in Australia, 2024) with Shell Go+ (>2.5m members), commercial fleets (fuel cards, bulk supply), aviation (major airports; jet fuel ~20–30% airline OPEX) and high-volume mining/marine/industrial customers needing on-site storage and HSE compliance; resellers rely on Viva for brand, credit and wholesale distribution (2024).

Shipping, storage and road transport form the largest recurring cost pool for Viva Energy Group, driven by chartering, depot leasing and fleet operations. Demurrage and handling fees necessitate tight scheduling and inventory control to avoid material penalties. Terminal energy and utilities add meaningful overhead, while shared infrastructure and third-party terminal networks help amortize fixed costs across volumes.

Feedstock is Viva Energy’s largest variable cost, with Brent averaging about US$84/barrel in 2024, driving refining and marketing margin volatility. Operations, maintenance and turnarounds are capital- and labor-intensive, focused on reliability and outage management. Retail site costs and upgrades continued with FY2024 retail capex A$136m; logistics and compliance add sizable recurring overheads.

Viva Energy’s lubricants, chemicals & bitumen segment focuses on higher-margin specialty products sold to retail and industrial customers, tapping a global lubricants market near US$40bn in 2024; technical services and strong branding support premium pricing and customer retention. Demand closely tracks automotive, construction and manufacturing cycles, providing countercyclical diversification that reduces reliance on volatile commodity fuel margins.

Retail fuel is core volume driver with FY2024 revenue AUD 17.8bn and >1,200 sites; premium fuels and Shell loyalty lift per-litre margins. Aviation/B2B index-linked contracts provide recurring cashflows and into-plane/logistics fees. Lubricants, bitumen and terminals add higher-margin diversification; convenience retail (30–60% GP) and site services boost site economics and basket size.