HEB Facts and Other Useful Info

[Rebecca Willaford]

HISTORY
The story of H-E-B began 100 years ago in a tiny family shop in
Kerrville. Today H-E-B serves families all over Texas and Mexico with
over 300 stores and 56,000 employees.

H-E-B's commitment to excellence has made it one of the nations
largest independently owned food retailers. Yet H-E-B's success has
not changed its commitment to giving the customer exceptional service,
low prices and friendly shopping.

A Family Business
In 1905, Charles C. and Florence Butt moved their three sons from
Memphis, Tennessee, to Kerrville in the Texas Hill Country. With an
initial investment of only $60, Florence opened the C.C. Butt Grocery
Store on November 26.

The youngest son, Howard E., became intrigued with the grocery
business. He took over the family business in 1919, upon his return
from World War I. In 1924, he expanded the Butt Grocery Company with a
new store in Junction, about 60 miles from Kerrville. Howard's motto
was, "He profits most who serves best."

Charles, the youngest son of Howard E. Butt, became president of the
H.E. Butt Grocery Company in 1971. Today, Charles Butt is chairman and
CEO of H-E-B, having grown the business from sales of $250 million in
1971 to $11 billion in 2003.

Florence Butt opened her first store with a set of beliefs that were
passed on to her sons, grandsons, and great-grandsons. Good principles
and a can-do attitude, whether times are good or bad, are at the heart
of H-E-B's success.

A History of Innovation
Thanks to constant innovation, H-E-B has always kept pace with its
customers' changing lifestyles.

1940s - H-E-B opened its first air-conditioned stores and began
stocking frozen foods. Exclusive brand names also appeared, including
Village Park, Park Manor and others.

1950s - H-E-B opened its first supermarkets, consolidating a fish
market, butcher shop, pharmacy and bakery under one roof.

1976 - The H-E-B Milk Plant opens in San Antonio and is now the
largest milk plant in Texas. H-E-B also operates the state's largest
bread bakery.

1990s - H-E-B introduced a new H-E-B Brand, under the concept of "Own
Brands." Already, over 3000 H-E-B Own Brand products have been
launched, ranging from eggs and yogurt to bacon and charcoal.

1994 - H-E-B opened the first Central Market in Austin, featuring a
European bakery, a deli with meats and cheeses from around the globe,
and a juice and ice cream bar.

1997 - H-E-B expanded its business across the border into Mexico.
2000 - H-E-B introduces H-E-Buddy mascot. Children across Texas are
delighted.

2001 - H-E-B enters the Houston market in a Texas-sized way with
large-format stores; the first one opens at Fountainview and
Westheimer.

2002 - H-E-B hosts the first Excellence in Education Awards
celebration in San Antonio. Today, H-E-B awards more than $400,000
in cash prizes to outstanding educators annually.

2002 - H-E-B opens its state-of-the-art Quality Assurance Laboratory,
giving the company technologically advanced scientific capabilities.
H-E-B is the only retailer in the U.S. to undertake extensive safety
testing of produce and ground beef.

2003 - H-E-B ranks sixth in the nation and first in Texas in a
Consumer Reports reader's survey of the nation's top conventional
supermarkets; the survey is based on price, checkout speed, service
and cleanliness.

2003 - H-E-B ranks 10th in the nation among privately held companies
based on $11 billion in annual sales, according to Forbes .


2003 - H-E-B opens a new $4 million, 14,000-square-foot
Transportation Terminal in Weslaco.

2004 - H-E-B introduces its new “H-E-B Plus” concept store in San
Juan, Texas. The 109,000 sq. ft. store provides customers with
expanded product and service offerings including extensive music,
video and DVD selections; a larger baby department; dedicated space
for grills and grilling supplies; an expanded card and party product
section; lawn and garden equipment; electronic and household items
and designated space for “surprise buys.”

2004 - H-E-B opens new Houston Bakery, a 114,000-square-foot, fully
automated facility to provide fresh breads to the region. The bakery
produces an average 153 loaves of bread and 750 buns per minute.

2004 - H-E-B opens a brand new $30 million retail support center in
Monterrey, Mexico.

2005 - H-E-B celebrates 100 years of serving Texans.


ENVIRONMENT
We believe that our work to care for the environment not only makes us
better neighbors — it helps us serve you better. By being energy
efficient and conserving natural resources, we’re not only helping the
planet, we’re also creating savings we can pass on to you in the form
of everyday low prices.

Assembled here is a partial list of the many ways H-E-B is making
sustainable practices a part of how we conduct business.


· We reduce more than 6 million pounds of harmful air pollutants and
divert more than 200,000 tons of waste from landfills – more than the
annual waste produced by 100,000 households – by recycling materials
including aluminum, steel, plastic, oil, cardboard and computers.
· Our cardboard and plastic recycling efforts save the equivalent of
1.7 million trees, 25,000 barrels of oil, 350,000 cubic yards of
landfill space and 400 million kilowatt hours (kWh) of energy per
year. The energy savings alone are enough to power more than 36,000
homes for a year.
· By increasing the amount of groceries that goes into each bag at
checkout, we have reduced the number of plastic bags we use by
136,381,800 – that conserves 8,000 barrels of oil and 2,500 cubic
yards of landfill space.
· We save 6.2 million gallons of water each year by reusing
condensation from manufacturing steam equipment – that’s enough to
supply the water needs of more than 150 homes every year.

· We were the first retailer in Texas to offer our customers E-85 Fuel
(85% ethanol) along the IH-35 corridor. E-85 is made from domestically
produced corn reducing our reliance on foreign oil while also reducing
harmful carbon dioxide emissions.
· E-85 is available now at select stores in San Antonio, Buda, Austin,
Killeen, Waco, Mission and Laredo, and will be available at our new
store in Kyle.

· Close to half of our largest delivery trucks in Houston operate on
liquefied natural gas, annually reducing approximately 35 tons of
harmful nitrous oxide emissions that contribute to smog and other
forms of air pollution. That’s the equivalent of removing 2,135
passenger cars off the road each year.

· Due to our fuel-saving strategies, we were the only Texas-based
company invited to serve as a charter partner in the Environmental
Protection Agency’s (EPA) SmartWaySM Transport Partnership. The
Partnership was formed to reduce greenhouse gas and other harmful
emissions from the heavy-duty sector.
· We have reduced our use of diesel fuel by over 4.7 million gallons
each year and carbon dioxide emissions by more than 30% annually.
That’s the equivalent of removing 10,678 passenger cars off the road
each year.