As part of H-E-B’s largest-ever investment in its manufacturing and supply chain operations, the San Antonio-based grocer plans to build a $125 million bakery production facility within its East Side campus.
H-E-B aims to begin construction on the 356,354-square-foot facility, warehouse and distribution center at 711 S. Foster Road in July, and it’s expected to be completed by September 2028, according to a filing with the Texas Department of Licensing and Regulation.
The new facility is part of the grocery chain’s overall $700 million expansion of its distribution operations on the East Side, as the company opens more stores and makes more of its own products. The company acquired more than 870 acres off South Foster Road in 2017 and said it has since spent more than $445 million to build warehouses and manufacturing operations there.
In May, Bexar County Commissioners Court unanimously approved county staff to negotiate a $15 million tax break for the expansion. In addition to the bakery, H-E-B plans to build a refrigerated warehouse and a building for returned goods.
H-E-B is requesting the tax break — a 10-year, 85% abatement of county property taxes on its investment — in exchange for hiring 720 employees and keeping all 1,389 current jobs at its facilities. Commissioners will vote on a final agreement with the company at a later date, but signaled that they’ll likely support the deal.
H-E-B is adding new stores at a fast pace. It’s opened more than 30 stores across Texas in recent years, including several in the San Antonio area, and has more in the works. The company operates 14 manufacturing plants, where it makes more than 1,500 products under its own brands, and 22 distribution centers.
Madison Iszler contributed to this report.
