H-E-B’s plans US$125M investment in San Antonio bakery
The planned development includes a bakery production facility, a warehouse, and a distribution centre, according to project reports.
USA – Texas grocer H-E-B has announced a series of major investments for its Foster Road campus in San Antonio, including the construction of a state-of-the-art commercial bakery, as part of a broader US$700 million supply chain expansion, the largest in the company’s manufacturing and supply chain history.
Formalized through a Texas Department of Licensing and Regulation filing issued on 19 June, the dedicated bakery component carries a US$125 million price tag and will cover 356,354 square feet.
Construction is scheduled to begin on 1 July, with project completion targeted for 15 September 2028.
Beyond the bakery, preliminary plans for the broader Foster Road expansion include a refrigerated warehouse, a transportation building, and additional facilities, as well as an extension of H-E-B’s existing manufacturing plant.
These efforts are designed to complement current operations and strengthen the company’s supply chain across the region and state.
The Foster Road site, spanning more than 870 acres, has been central to H-E-B’s distribution infrastructure since its acquisition seven years ago, with more than US$445 million already invested, a warehouse and manufacturing plant exceeding two million square feet, and a workforce of 1,400.
If the full project proceeds as planned, total investment on campus would surpass US$1 billion, with headcount rising to approximately 2,600.
The wider supply chain project is expected to create 720 jobs by 2028 and more than 1,200 full-time jobs over the next decade.
H-E-B’s Chief Supply Chain Officer, Carson Landsgard, underscored the strategic importance of the initiative: “We look forward to advancing our plans to grow our supply chain operations, a project that reaffirms our commitment to be an economic engine for our great state.”
H-E-B, with annual sales exceeding USD 50 billion, operates over 455 stores across Texas and Mexico and employs more than 175,000 partners.
The company has served Texans for over 120 years and is recognized for its innovation, fresh food offerings, and community commitment.
The move signals H-E-B’s confidence in vertically integrating its bakery supply chain at scale, positioning the retailer to compete more aggressively in one of North America’s most dynamic grocery markets as consumer demand for fresh and in-store baked goods continues to grow.
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