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‘Building a future on a past steeped in history’ is what’s written in a brochure describing H-E-B’s current headquarters offices located within The San Antonio Arsenal, built in 1859. On the steps of the Arsenal’s courtyard are representatives of PRODUCE BUSINESS and some of H-E-B’s partners. Left to right: Mira Slott (PB), Bill Reynolds (H-E-B), Ken Whitacre (PB), Winell Herron (H-E-B), Jim Prevor (PB), Hugh Topper (H-E-B), James Harris (H-E-B) and Susan Ghertner (H-E-B)
• Minority companies H-E-B engages and enables through its supplier diversity program • Long-term relationships nurtured with
small to mid-size local farmers
• Numerous charitable organizations
H-E-B actively supports in giving back to the communities
• Ethnically varied consumers, who have developed an unusual affinity for H-E-B’s customized approach. “My H-E-B” is a common phrase shoppers in H-E-B territory proudly use to reference the store closest to them, entertaining their connection to the partnership mentality.
One of the largest independently owned retailers, the 330-plus-store chain reaches some 6 million customers per week in 150 communities purposely concentrated solely in Texas and neighboring Mexico. H-E-B banners include Central Market, H-E-B Plus!, Mi Tienda and Joe V’s.
As a privately held company, H-E-B is unfettered by the pressures of producing short-term gains to appease stockholders. The company capitalizes on its flexibility to exper- iment with emerging technologies, take risks
and innovate in all realms of the sustainability puzzle. For H-E-B, the strategy is a give-and- take of guiding and being guided to balance the mosaic of people, profits and planet — a challenge its many partners welcome.
Produce: The Common Thread
H-E-B’s sustainability principles plant produce at the core. Fresh produce, in many ways, defines H-E-B’s identity, according to Susan Ghertner, director of environmental affairs. “Produce is who we are,” she says, pointing out that fresh, local and sustainable were driving principles at the company years before the concepts became fashionable.
H-E-B promotes its mission to offer consumers an abundance of high quality, fresh fruits and vegetables tailored to their needs, which threads into its sustainability strate- gies: bolstering local farmers, connecting and giving back to the community and keeping it in Texas and Mexico.
Targeted For The Long-Term
What are the roots that differentiate H-E-B from others and enable it to do the things it
does so well? Two notable factors spring out: the first is being privately held, the second is its unique position as the only retailer of its scale and size to operate exclusively in one state and across the border in Mexico. Its familial tie to its Texan communities bolsters its sustainability goals and provides a compet- itive edge.
“One of the primary features of our company is the long view, and that supports our partners; it supports our stronger business case to be sustainable as a business model, and it supports the community,” says Hugh Topper, group vice president of fresh procure- ment and merchandising.
This attitude extends toward dealings with suppliers. There has been a lot of change among many retailers in the way they procure in the produce industry, reacting short-term to the tremendous pressure to finagle the most competitive price. These fleeting deals raise concerns about the long- term vitality of the produce industry, as growers need to have the financial where- withal and confidence to reinvest and expand their facilities, while modernizing to
28 PRODUCE BUSINESS • MAY 2011