Because People Matter Retail Grocery Perspective

Transcription

1 Retail Grocery Perspective Food Industry Trends Conference Oklahoma State University

2 Our Story Because People Matter 1905 Florence Butt invests $60 to open the first store in Kerrville, Texas 1952 The first food/drug store opens in Corpus Christi 1971 Charles Butt is named President of H-E-B Grocery Company, a $250 million business 1980 After 75 years in business, H-E-B reaches $1 billion in sales

3 7 th largest supermarket chain 106 years in operation 76 thousand partners Today Because People Matter stores in Texas stores In Mexico distribution centers 13 manufacturing plants 12,300 + own brand items

4 Because People Matter Our Values!!!!! Work Ethic Drive for Financial Results Innovation Care for People Community Service We are committed to investing in the future of our Partners, our Customers, and our business

5 Because People Matter

6 H-E-B Mexico! Today, there are:! 40 stores! 7,500 Socios (Partners)! A headquarters in the historic Obispado sector of Monterrey! A 700,000 square-foot Distribution Center! H-E-B Mexico hit a landmark sales milestone in 2008, breaking the $1 billion mark in sales

7 Because People Matter Newest Division of HEB

8 Because People Matter Network of Formats Expansion of Products and Services Price Innovation Own Brand Products Understanding our Customers Needs Being an AND Company

9 Global Food Safety Initiative GFSI Once certified, recognized by all

10 Global Food Safety Initiative (GFSI) Timeline 2005 Introduction to GFSI (Rome Conference) 2006 First plant (Snacks) certified to SQF Level III 2008 All remaining HEB plants certified to SQF III Requested outside Own Brand vendors to be certified to any recognized GFSI standard 2009 HEB SQF Practitioner Training for Suppliers

11 Global Food Safety Initiative Why we support: (GFSI)! Convergence between food safety standards through a formal benchmarking process! Improve cost efficiency! Continuous improvement of standards! Greater confidence through governance of standards, auditing bodies and auditors.! Helps prepare for FSMA! System can expand beyond manufacturing plants

12 Global Food Safety Initiative Challenges: (GFSI)! What about small suppliers?! How do we assess potential, non-certified suppliers?! What about auditor competence and standardization?! How do we keep a relationship with our vendors?! What about customers who want to continue auditing vendors after saying they recognize GFSI certification?

13 Future Direction! Require all suppliers throughout the supply chain to obtain GFSI certification! Keep strong vendor relationships! Visits! Meaningful interactions! Build a comprehensive supplier education program Support GFSI Global Markets Program HEB University

14 Results since certification Because People Matter 12 # Monthly Incidents FY07 FY08 FY09 FY10 FY11

15 ! Commitment Assessing Suppliers! Leadership accountability! Evidence of commitment to food safety! Competence! Talent! Training and investment in employees! Experts in their field of work! Capacity! Ability to improve how work is accomplished! Prevention-based systems! Ability to grow and effectively manage complexity

16 FSMA Scope for HEB:! Domestic Suppliers! Import! HEB Manufacturing! Warehouse & Distribution! Retail Stores! Recall Program

17 HEB University 2011 FMI-SQFI Training Center of the Year Award Monthly Classes in San Antonio Training includes in-plant component For more information: Google - HEB University or call

18 Thank you for your attention and for making our industry stronger through learning and sharing Derek Kirchner