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Kiowa County Growers Expands Market AreaOctober 24, 2003 Kiowa County Growers, Inc. CEO Norm Arends announced last Thursday that the company had reached an a preliminary agreement with its business partner, Agro Management Group, Inc., which will significantly expand KCGI’s market area. KCGI licenses the right to manufacture a number of seed oil-based products from Agro, which are then distributed through Great Plains Oil, LLC, which is jointly owned by the two companies. In addition to the expanded marketing area, Agro will relinquish its ownership stake in GPO. Under previous agreements, GPO could market such products as dust suppressant, drip oil, and motor oil in all of Colorado and an area within 200 miles of Eads. Under the new agreement, expected to be finalized in mid-November, the exclusive territory expands to all of Kansas, Oklahoma, and Texas. Exclusive marketing rights are also retained in Colorado, with the exception of six counties in the northeastern part of the state. Non-exclusive rights were also obtained in all of Nebraska.
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The company will also enjoy the exclusive right to market products to rural electric associations across the country. GPO currently sells seed oil-based motor oil to Southeast Colorado Power Association, based in La Junta. Exclusive rights were also obtained to market drip oil, an important product to the company, and bakery oil across the United States. The new agreement also eliminates annual sales benchmarks and minimum royalties. Royalties will now be paid quarterly and based upon actual products sold.
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