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H -E-B O W N BRA N D S

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H-E-B V/S. INDUSTRY

Industry operating on wafer thinmargins of approx. 3 6 pct of sales

H-E-B being an innoatie leadercloc!ed sales"store higher thennational aerage

H-E-B could achiee this due to#-

$trong commitment to E%&'strategy

Better operational e(ciency

)dherence to consumer alue

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W ALM ARTS ENTRY

)malgamated its discount mass merchandisestore format with grocery store to create$*'E+,EE+ in /01

$upercenter stores mushroomed to 222 by/

)cted as a source of inspiration for argetand 4mart

,reated eighborhood mar!et format tofocus on health and beauty items5 pharmacyand ba!ery products

E%&' at almart is credited to higher

purchasing power and supply chainleadership

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H.E.BUTT GROCERY COM PANY

H-E-

B

,$+)ctiity

Executies. gainedinputs

globally

Empowerstore

managerwith storephilosophy

Educationand hunger

relief

ewprods

. 7$uppl

ychain

strategies

8utstanding

customer

serice

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H-E-B PILLARS:THE BOLDPROM ISE

HE B8&%

'+89I$E,*$89E+$Best serice

:resh5safe prods.

&ow price with bestalue

+EEI8 8: ;+E)'E8'&E

'roiding benee eachstore/s potential

or! towardsachieing lower

costs

,899*IIE$

Earn communitytrust and respect

trough action

%uring crisis ta!eaction

$hare time andresources with

neighbours

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H-E-B STORE FORM ATS

:ormed??pctofsales'roidedassortmentbasedonlocalmar!etneeds,reationof9E)&%E)&toboosttopline

$upermar!ets

:ormed@6pctofsales.heyoperateonalowcost5lowpriceformatithincreasingdemand5thesestoreswillbetranslated

toH-E-Bsupermar!ets

'antrystores

.otalAinnumberandformed1pctofthesales:eaturedready-to-eatproducts)ttractspeoplewithinalargerradius,arriedhugecollectionofwine5beer5cheeses5oilsetc

,entralmar!ets

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H-E-Bs OW N BRANDS

:ocused on improedpro

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H-E-Bs PROCUREM ENT PLAY

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CHALLENGES FACED BY H-E-B

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Reco e!"#$%o! &o' G(#c%#

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G(#c%# ) Ro#" A*e#"+

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G(#c%# ) Co ,e$%$%o! #$ #

(#!ceBrand ,ost"*nit 'rice"*nit

;ross9argin D 'ro

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G(#c%# ) S$o' o& Co!$'#"%c$%o!

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G(#c%# ) Cs$o e' V%e0

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G(#c%# ) P'o,ose" So($%o!

+eposition ;lacia as %omestic $pring water

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G(#c%# ) Do es$%c S,'%! W #$e' A"1#!$#es

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H EB O W N BRAN DRESPO N SE TO

CO M PETITIVE PRICIN G

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O23ec$%1e o& O0 ! B'#!" P'o"c$ L%!e )

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H-E-B O0 ! B'#!" Los$ %$s ,'e % I #e

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4es$ $o Re#%! Los$ G'o!"

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THANK YOU