Company Profile
Company Overview
The H. E. Butt Grocery Company (H-E-B), headquartered in San Antonio, Texas, is the second largest independent regional food/drug company in the U.S., with approximately $11 billion in revenues and 60,000 employees. Founded in 1905, H-E-B operates over 305 food retailing locations in a number of formats, including superstores, supermarkets and gourmet markets. The majority of stores are in Texas, with an expanding presence in Northern Mexico. H-E-B is the #1 food retailer in the Austin, San Antonio, Corpus Christi and Rio Grande Valley markets, as well as enjoying greater than a 50% market share in Central and South Texas. The Company, still wholly owned by the founding Butt family, is the largest private company in Texas and one of the 15 largest privately held companies in the U.S. In addition, H-E-B is recognized as a highly involved corporate citizen, annually contributing 5% of its pre-tax earnings to public and charitable causes.
The Company is pursuing an aggressive growth strategy, focusing on regional opportunities, including the Dallas/Ft. Worth and Houston markets. Mexico is also seen as a high priority, given the market potential in cities such as Monterrey, and the Company's sophisticated knowledge of local consumer tastes. Currently there are 23 stores in Mexico with plans to have approximately 40-50 stores in the region. A new centralized distribution center was built and opened in Monterrey in late 2004. The Company is making significant capital investment in Houston to achieve market share leadership and aggressive growth goals in this market. In addition, the Company recently extended its presence to Dallas/Ft. Worth, opening three Central Market locations in ’02 with a fourth opening in 06/07. The Company opened 3 larger “Plus Format” stores, encompassing general merchandise, in the last part of 05, and has several more schedule to open in 2006 and 2007. H-E-B also operates manufacturing facilities for processing milk, meat, ice cream, bread, pastry, potato and corn chips, and photo finishing. These facilities are located within the four distribution centers operated in the USA by H-E-B located in San Antonio, Houston, Corpus Christi and San Marcos. In addition to a full line of grocery, pharmacy, and deli offerings, over 40% of its stores also include gasoline outlets.
While the Company faces challenging competition in its markets from large, national retailing chains, including Wal-Mart, Kroger, Safeway and Albertson’s, it has been more than able to hold its own, including better than average like store sales growth. This has been achieved through an innovative, efficient operating structure combined with a keen focus on knowing and providing for local customer needs.