When Oil Companies Have Made Too Much Money

There comes a time in every cycle that companies hit when they have invested all they can in their own business. They have aquired anyone cheap. And expanded as much as they can. Then with nothing left to do within their own competency they branch out. Sometimes these bets pay off and sometimes they seem to make no sense and end up hurting companies for years. Now while I am not judging Valero here I think its an interesting article to point out what to do when you have made more money than you can handle:

Valero creates new line of private-label sodasTuesday April 4, 12:06 pm ET
Valero Energy Corp. launched a new line of flavored soda that will be sold in more than 1,000 company-operated Valero and Diamond Shamrock Corner Stores nationwide.
The company is selling the 20-ounce bottles of soda, which come in orange, strawberry, grape, blue cream and peach, for 99 cents each.
Valero (NYSE: VLO - News) has been working to expand its private-label products business ever since the company bought Ultramar Diamond Shamrock Corp. in 2001.
Through that purchase, Valero gained Ultramar Diamond Shamrock's vast network of retail-gasoline stores -- making it one of the country's largest service-station operators with more than 5,000 stores today.
Gary Arthur, senior vice president of retail and specialty products marketing, says flavored soda is the latest line under the company's Fresh Choices private-label business, which now includes chips, bottled water, cold sandwiches and salads.
The soda, which is also being sold under the Fresh Choices brand, is being distributed by Valero's new retail distribution center. That distribution facility opened in 2005 at the Tri-County Business Park in Schertz.

By the way here is a business description of Valero in case you arent familiar with what they do:

Valero Energy Corporation operates as a refining and retailing company in the United States. Its refining business includes refining operations, wholesale marketing, product supply and distribution, and transportation operations. The company’s products include reformulated gasoline, diesel fuel, and low-sulfur diesel fuel and oxygenates. It also produces conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants, and other refined products. As of December 31, 2005, the company operated 18 refineries in the United States, Canada, and Aruba. Valero Energy’s retailing activities include sale of transportation fuels; and home heating oil to residential customers primarily in company-operated convenience stores, Canadian dealers/jobbers, truckstop facilities, and cardlock facilities. Its company-operated convenience stores also sell snacks, candy, beer, fast foods, cigarettes, and fountain drinks. The company had approximately 1,008 company-operated sites; and approximately 5,000 retail and wholesale outlets, as of the above date. Valero Energy was founded in 1955. It was formerly known as Valero Refining and Marketing Company and changed its name to Valero Energy Corporation in 1997. The company is headquartered in San Antonio, Texas.