HEB Grocery Company
   HOME

TheInfoList



OR:

H-E-B Grocery Company, LP, is an American
privately held A privately held company (or simply a private company) is a company whose shares and related rights or obligations are not offered for public subscription or publicly negotiated in the respective listed markets, but rather the company's stock is ...
supermarket A supermarket is a self-service Retail#Types of outlets, shop offering a wide variety of food, Drink, beverages and Household goods, household products, organized into sections. This kind of store is larger and has a wider selection than earli ...
chain based in San Antonio, Texas, with more than 340 stores throughout the U.S. state of Texas, as well as in northeast Mexico. The company also operates Central Market, an upscale organic and fine foods retailer. As of 2019, the company has a total revenue surpassing 31.2 billion. H-E-B ranked number 9 on '' Forbes'' 2020 list of "America's Largest Private Companies". H-E-B was named Retailer of the Year in 2010 by ''Progressive Grocer''. Supermarket News ranks H-E-B 13th on the list of "Top 75 North American Food Retailers" by sales. Based on 2019 revenues, H-E-B is the 19th-largest retailer in the United States. It donates 5% of pretax profits to charity. The official mascot of H-E-B is named H-E-Buddy, an anthropomorphic brown grocery bag, with multiple grocery items being shown coming out of the top.


History

The company was founded on November 26, 1905, when Florence Butt opened the C.C. Butt Grocery Store on the ground floor of her family home in Kerrville, Texas. In 1919, Howard Edward Butt, Florence's youngest son, took over the store upon his return from World War I. Shortly after becoming owner of his mother's small store, Howard tried four expansions into Central Texas, including one in
Junction Junction may refer to: Arts and entertainment * ''Junction'' (film), a 2012 American film * Jjunction, a 2002 Indian film * Junction (album), a 1976 album by Andrew Cyrille * Junction (EP), by Basement Jaxx, 2002 * Junction (manga), or ''Hot ...
, all of which failed. Finally, in 1927, Howard launched a successful second store in
Del Rio, Texas Del Rio is a city and the county seat of Val Verde County in southwestern Texas, United States. The city is 152 miles west of San Antonio. As of 2020, Del Rio had a population of 34,673. History The Spanish established a small settlement south o ...
, followed by the purchase of three grocery stores in the Lower Rio Grande Valley. The initials of Howard E. Butt became the name of the store.
Charles Charles is a masculine given name predominantly found in English language, English and French language, French speaking countries. It is from the French form ''Charles'' of the Proto-Germanic, Proto-Germanic name (in runic alphabet) or ''*k ...
, the younger son of Howard E. Butt, became president of H-E-B in 1971. As of 2019, Charles Butt is
chairman The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the grou ...
and
CEO A chief executive officer (CEO), also known as a central executive officer (CEO), chief administrator officer (CAO) or just chief executive (CE), is one of a number of corporate executives charged with the management of an organization especially ...
of H-E-B, having grown the business from annual sales of $250 million in 1971 to $13 billion in 2006. In 2010, Craig Boyan was named H-E-B's president and
COO COO or coo may refer to: Business * Certificate of origin, used in international trade * Chief operating officer or chief operations officer, high-ranking corporate official * Concept of operations, used in Systems Engineering Management Process ...
. By 2018, Martin Otto, the former CFO and chief merchant, had become the COO. In 2011, the company was #12 H-E-B is the largest privately held company and largest private employer in Texas. H-E-B acquired
Favor Delivery Favor Delivery is a same-day delivery and online food ordering platform headquartered in Austin, Texas. The company was founded in 2013 and was acquired by San Antonio, Texas-based regional supermarket chain H-E-B H-E-B Grocery Company, LP, ...
as a wholly owned subsidiary in February 2018. The details of the merger were not disclosed. In 2019, H-E-B invested millions of dollars to replace cashier stations with self-checkout kiosks or smartphone apps, at the same time that many other supermarkets (such as Walmart,
Target Target may refer to: Physical items * Shooting target, used in marksmanship training and various shooting sports ** Bullseye (target), the goal one for which one aims in many of these sports ** Aiming point, in field artillery, fi ...
, etc.) were shifting towards more self-checkout lanes, and app usage.


Operations

Headquartered in downtown San Antonio, H-E-B operates more than 300 stores in over 150 communities across Texas. As of late 2010, its operations serve approximately "55-plus" percent of the Texas market, with primary Texas markets including the Corpus Christi, San Antonio,
Austin Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Incorporated on December 27, 1839, it is the 11th-most-populous city ...
, Laredo and Houston metro areas. The company does business in five different retail formats: general H-E-B stores, Central Market, H-E-B Plus, Mi Tienda and Joe V's Smart Shop. In 2010, the company announced plans to build 19 new stores in Texas. H-E-B opened its first store outside of Texas in 1996, a H-E-B Pantry store in Lake Charles, Louisiana; though the expansion was, in comparison, short-lived and ultimately failed to catch on, either with planners or with the community. The H-E-B Pantry store format was discontinued in 2000, and the company closed its sole Louisiana store in 2003. In 2010, H-E-B offered consumers the opportunity to vote on possible designs for new stores as they expand into new communities. The company operates several manufacturing facilities in Texas, including one of the largest milk- and bread-processing plants in the Southwest. H-E-B produces many of their own-brand products, including milk, ice cream,
bread Bread is a staple food prepared from a dough of flour (usually wheat) and water, usually by baking. Throughout recorded history and around the world, it has been an important part of many cultures' diet. It is one of the oldest human-made f ...
, snacks, and ready-cooked meats and meals. These and other private-label products are sold under various brands, including "Central Market Naturals", "Central Market Organics", "H-E-B", "H-E-Buddy", "Hill Country Fare", "H-E-B Creamy Creations" ice cream, "H-E-B Mootopia" milk, and "H-E-B Fully Cooked". Several stores include multiple-tenant operations through third-party lease arrangements. Many stores include a bank operation, cellular kiosk, and multiple nationally recognized tenants. The ''Austin Business Journal'' rated H-E-B as the largest private-sector employer in the region in 2017. In 2019, the company announced plans to build a technology center at its headquarters complex. File:HEBBuffaloMarketHoustonTX.JPG, Houston's Buffalo Market H-E-B (#51) Image:Central Market north Austin.jpg, Central Market store in central Austin Image:H-E-B Plus Laredo.jpg, H-E-B Plus store in Laredo, Texas File:HEBMiTiendaNorthHouston.JPG, Mi Tienda in northern Houston Image:Joe V's Smart Shop Houston.jpg, Joe V's Smart Shop in Harris County, Texas


Central Market

In 1994, H-E-B introduced its Central Market concept in
Austin Austin is the capital city of the U.S. state of Texas, as well as the seat and largest city of Travis County, with portions extending into Hays and Williamson counties. Incorporated on December 27, 1839, it is the 11th-most-populous city ...
. Based in San Antonio, Central Market offers an organic and international food selection, including a European-style bakery and extensive wine and beer selections. The chain is now composed of 10 stores – three in Dallas, two in Austin, and one each in
Fort Worth Fort Worth is the fifth-largest city in the U.S. state of Texas and the 13th-largest city in the United States. It is the county seat of Tarrant County, covering nearly into four other counties: Denton, Johnson, Parker, and Wise. According ...
, Houston, Plano, San Antonio, and Southlake. H-E-B operates four different formats of stores that introduce general merchandise and elements of the Central Market concept: The Woodlands Market in The Woodlands in
Montgomery County Montgomery County may refer to: Australia * The former name of Montgomery Land District, Tasmania United Kingdom * The historic county of Montgomeryshire, Wales, also called County of Montgomery United States * Montgomery County, Alabama * Mon ...
, Kingwood Market in the Kingwood section of Houston, and the Austin-Escarpment store in south Austin. A fourth store opened on March 22, 2008, in
West Lake Hills West Lake Hills (locally referred to as "Westlake") is a city in Travis County, Texas, United States. The population was 3,444 at the 2020 census. The city developed rapidly in the 1970s and 1980s on the south side of the Colorado River. Accordin ...
, and in 2009, the H-E-B in Bee Caves was remodeled. H-E-B's Alon Market opened on October 17, 2008, in San Antonio. In July 2015, the Market concept was expanded as a new Spring Creek Market was opened in southern Montgomery County in Spring, Texas, on Rayford Road.


H-E-B Plus!

In 2004, the company launched three (in Austin, Corpus Christi, and Waco) H-E-B Plus! stores with an expanded focus on nonfood categories, such as entertainment and other general merchandise. The company added three additional locations in 2005 (Corpus Christi,
Round Rock Round Rock is a city in the U.S. state of Texas, in Williamson County, Texas, Williamson County (with a small part in Travis County, Texas, Travis County), which is a part of the Greater Austin metropolitan area. Its population is 119,468 as of ...
, and San Antonio). The stores offered several new departments, including Do-It-Yourself and Texas Backyard, and greatly expanded product categories in baby, card and party, cosmetics, entertainment, housewares, and toys. Several other locations were later added, including stores in
Flour Bluff Flour Bluff is a specified area of the city of Corpus Christi, Texas. It is located on Encinal peninsula bordered by Corpus Christi Bay on the north, Oso Bay on the west, the Laguna Madre on the east and the King Ranch to the south. South Padre I ...
, Corpus Christi, Brownsville, Burleson, Bastrop, Beaumont, Belton,
Boerne Boerne ( ) is a city in and the county seat of Kendall County, Texas, in the Texas Hill Country. Boerne is known for its German-Texan history, named in honor of German author and satirist Ludwig Börne by the German Founders of the town. The popu ...
, Katy, Killeen,
Cypress Cypress is a common name for various coniferous trees or shrubs of northern temperate regions that belong to the family Cupressaceae. The word ''cypress'' is derived from Old French ''cipres'', which was imported from Latin ''cypressus'', the ...
, Victoria, Waxahachie, New Braunfels,
Kyle Kyle or Kyles may refer to: Places Canada * Kyle, Saskatchewan, Canada Ireland * Kyle, County Laois * Kyle, County Wexford Scotland * Kyle, Ayrshire, area of Scotland which stretched across parts of modern-day East Ayrshire and South Ayrshir ...
, Laredo,
Leander Leander is one of the protagonists in the story of Hero and Leander in Greek mythology. Leander may also refer to: People * Leander (given name) * Leander (surname) Places * Leander, Kentucky, United States, an unincorporated community * Le ...
, Mission, Rio Grande City,
San Juan San Juan, Spanish for Saint John, may refer to: Places Argentina * San Juan Province, Argentina * San Juan, Argentina, the capital of that province * San Juan, Salta, a village in Iruya, Salta Province * San Juan (Buenos Aires Underground), ...
, San Antonio,
Midland Midland may refer to: Places Australia * Midland, Western Australia Canada * Midland, Albert County, New Brunswick * Midland, Kings County, New Brunswick * Midland, Newfoundland and Labrador * Midland, Ontario India * Midland Ward, Kohima, Nagal ...
, Pearland,
Copperas Cove Copperas Cove is a city located in central Texas at the southern corner of Coryell County with smaller portions in Lampasas and Bell counties. Founded in 1879 as a small ranching and farming community, today the city is the largest in Coryell ...
and
Hutto Hutto is a city in Williamson County, Texas, United States. It is part of the Austin–Round Rock metropolitan area. The population was 27,577 at the 2020 census. Geography Hutto is located at (30.544517, −97.545198), about seven miles (11&nb ...
.


Mi Tienda

In 2006, H-E-B opened Mi Tienda in
south Houston South Houston is a city in the U.S. state of Texas, within Houston–The Woodlands–Sugar Land metropolitan area and Harris County. The population was 16,153 at the 2020 census. It is bordered by the cities of Houston and Pasadena, and geo ...
(adjacent to
Pasadena Pasadena ( ) is a city in Los Angeles County, California, northeast of downtown Los Angeles. It is the most populous city and the primary cultural center of the San Gabriel Valley. Old Pasadena is the city's original commercial district. Its ...
) in greater Houston – a Latino-themed store. Another Mi Tienda opened in north Houston in 2011; it is twice the size of the original location, and has of space. This second location is off of Little York and
Interstate 69 Interstate 69 (I-69) is an Interstate Highway in the United States currently consisting of 10 unconnected segments with an original continuous segment from Indianapolis, Indiana, northeast to the Canadian border in Port Huron, Michigan, at ...
/
U.S. Route 59 U.S. Route 59 (US 59) is a north–south United States highway (though it was signed east–west in parts of Texas). A latecomer to the U.S. numbered route system, US 59 is now a border-to-border route, part of the NAFTA Corridor Highway Sy ...
. Mi Tienda, which means "my store" in Spanish, sells Mexican baked goods; a tortilleria, where employees make tortillas; and a carniceria providing marinated cuts of chicken, beef and pork. In addition, Mi Tienda also houses the Cocina restaurant, which serves Mexican food and drinks.


Joe V's Smart Shop

In 2010, H-E-B opened ''Joe V's Smart Shop'', a brand featuring discount items modeled after discount grocer Aldi.Kaplan, David.
New H-E-B concept is discount-minded
."'' Houston Chronicle''. April 20, 2010. Retrieved on May 4, 2010.
The first location opened was a store located in northwest unincorporated Harris County, Texas, near northwest Houston. The store format is smaller compared with a full-service H-E-B store but double the size of an H-E-B Pantry store. A larger, second location with a space opened in December in northeast unincorporated Harris County, Texas. As of 2016, there are seven Joe V's stores. The "Joe V" name was based on the name of an executive of the company who was involved in the development of this store format.


True Texas BBQ

True Texas BBQ is a barbecue restaurant chain located inside select H‑E‑B stores.


Mexico

H-E-B opened its first Mexican store in 1997 in
Monterrey Monterrey ( , ) is the capital and largest city of the northeastern state of Nuevo León, Mexico, and the third largest city in Mexico behind Guadalajara and Mexico City. Located at the foothills of the Sierra Madre Oriental, the city is anchor ...
. It has more than 50 locations in Mexico. H-E-B crossed the $1 billion annual sales mark in Mexico in 2012.


Litigation

In the mid-1980s, local grocery chains Handy Andy and Centeno joined a lawsuit against H-E-B citing unfair pricing practices. H-E-B eventually settled the suit out of court with Centeno in 1998 for $6.5 million and with Handy Andy for an undisclosed settlement amount. H-E-B has paid $12 million to settle a whistleblower lawsuit accusing the San Antonio–based grocery chain of Medicaid fraud. Since at least 2006, according to the suit, H-E-B allegedly submitted to Texas Medicaid inflated prices on thousands of claims for prescriptions it filled so the company could obtain higher reimbursements than allowed.


Charitable activity

The company gives five percent of annual pretax earnings to causes in the areas in which it operates, including education and food banks. The Excellence in Education Awards are an annual charitable program maintained by H-E-B since 2000, in which teachers, administrators and schools in Texas are recognized, with awards totaling $500,000 in contributions in 2009. H-E-B coordinated donations to relief efforts in the wake of a fertilizer plant fire and explosion in West, Texas. The company donated $50,000 to the
American Red Cross The American Red Cross (ARC), also known as the American National Red Cross, is a non-profit humanitarian organization that provides emergency assistance, disaster relief, and disaster preparedness education in the United States. It is the desi ...
and launched a checkstand campaign benefiting the organization to get the community involved in the relief effort. The company said in a news release 100 percent of the donations from the campaign will support the American Red Cross's disaster relief efforts. H-E-B also activated its emergency response units, sending the H-E-B Eddie Garcia Mobile Kitchen and water tanker to West, including donations of meals and water to the victims and first responders. In the aftermath of
Hurricane Harvey Hurricane Harvey was a devastating Category 4 hurricane that made landfall on Texas and Louisiana in August 2017, causing catastrophic flooding and more than 100 deaths. It is tied with 2005's Hurricane Katrina as the costliest t ...
in 2017, H-E-B donated $100,000 toward relief efforts. Its campaign drive for customer contributions totaled $1,000,000. In addition, H-E-B's Mobile Kitchen and Disaster Relief Units distributed 10,000 hot meals to volunteers and victims in the affected areas in Texas. After the
Robb Elementary School shooting On May 24, 2022, a mass shooting occurred at Robb Elementary School in Uvalde, Texas, United States, where 18-year-old Salvador Ramos, a former student at the school, fatally shot nineteen students and two teachers, and wounded seventeen other ...
in
Uvalde, Texas Uvalde is a city and the county seat of Uvalde County, Texas, United States. The population was 15,217 at the 2020 census. Uvalde is located in the Texas Hill Country, west of downtown San Antonio and east of the Mexico–United States bord ...
, on May 24, 2022, in which 19 children and two teachers were killed, H-E-B and the Butt family donated $10 million toward building a new school as founding donors. Initial participants joining the family are a Texas architectural firm, Huckabee, and a Texas general contractor, Joeris General Contractors.


References


External links

*
H-E-B
at YouTube
Charles Butt & family profile
on '' Forbes'' *
Charles Butt
on '' Forbes'' 2004 List of World's Richest People * {{Authority control 1905 establishments in Texas American companies established in 1905 Butt family Companies based in San Antonio Privately held companies based in Texas Retail companies established in 1905 Supermarkets of the United States Family-owned companies of the United States