BUSINESSWEEK ONLINE : FEBRUARY 5, 2001 ISSUE
FRONTIER -- FEATURES

The Crunch at Emergency Solutions
6.28.99

Spare tank, a nonflammable gasoline substitute, was going to set the world on fire. Or so its investors hoped when they recruited RICK JONES to head Emergency Solutions, the Baltimore company created to market the product. Debuting in February, 1999, after five years of R&D, the fuel was the answer to a stranded motorist's prayer. Stash it in your trunk for emergencies, then uncap and pour, and you've got a gallon of gas to make it to the next service station.

Almost from the outset, Jones, 57, found himself in the fast lane. When frontier profiled Emergency Solutions in June, 1999, Kmart had just signed on as a retailer, and the product was selling briskly in a number of catalogs and regional stores. But Jones has since hit some potholes. In December, 1999, Pennzoil-Quaker State Co. brought out its own gasoline substitute, Roadside Rescue Emergency Fuel. Jones watched in horror as sales plummeted after Kmart stocked the competing product alongside his own. He later sued Pennzoil for patent infringement. Says Jones: ''We didn't anticipate this happening.''

Pennzoil spokesman Ray Scrippa denies the allegations of patent infringement, arguing that its product is ''significantly different.'' With legal relief uncertain at best, Jones has rewritten his business plan three times. Now, he is targeting foreign markets in Australia and New Zealand and forging a plan to market Spare Tank as part of a roadside emergency kit for car-rental companies, motorist-assistance services, and manufacturers. Fortunately, the company has enough capital to tough it out, Jones says. With any luck, the five-person company will soon be back on track, leaving its recent troubles in the rearview mirror.



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