H-E-B invests $700m to expand supply chain and distribution infrastructure in San Antonio

By Jed Nykolle Harme

May 27, 2026

Photo Credits: H-E-B

Texas-based grocery chain H-E-B has announced a $700 million (€611 million) expansion of its supply chain and manufacturing operations at its Foster Road campus on San Antonio's East Side, in what the company describes as its largest-ever investment in its manufacturing and distribution network, with new facilities expected to begin operations as early as 2028.

The San Antonio Express News reported that preliminary plans call for the construction of a bakery, refrigerated warehouse, and transportation building, alongside an expansion of the manufacturing facility H-E-B already operates on the 870-acre East Side site, where the company has invested more than $445 million (€388 million) over the past decade.

The project is expected to create more than 1,200 full-time jobs by the time the build timeline concludes in 2038, with 720 of those positions coming online in 2028. The existing Foster Road campus currently supports approximately 1,400 jobs across warehousing and manufacturing operations.

Carson Landsgard, chief supply chain officer at H-E-B, said: "While we are still developing our plans, this will be a major investment for H-E-B that will create jobs and better position us to serve even more Texans."

The expansion is designed to scale capacity in line with H-E-B's continued store growth across Texas, with the company operating more than 455 stores under the H-E-B, Joe V's Smart Shop, Central Market, and Mi Tienda banners. H-E-B employs more than 170,000 people and generates annual sales of more than $50 billion (€43.6 billion).

The company also recently purchased a 600-acre parcel of land in Valley View to support supply chain expansion into North Texas, reinforcing a broader strategic shift toward regional distribution infrastructure investment across the state.

Access the full details of H-E-B's $700 million supply chain expansion plans here.