HEB Case Questions

1. What was the point in seeking an alliance?

There were a lot of concerns raised by the locals about a “chain” coming to their neighborhood. This is a hurdle that HEB would have to jump to succeed in their new market. Therefore, before opening up their first store, it was imperative that HEB built a reputation for themselves in the community. They teamed with Banco De Alimentos Caritas de Monterrey (BACM) in these efforts. HEB made important contributions to BACM in the form of cash, facilities, and operating systems, and in return, BACM supported by creating new food banks wherever new stores were opened in the northeast region of Mexico. Together, they set multiple social and community development agenda. They also made sure to do so while allowing BACM to keep its name; one that the community was familiar with and trutsed.

2. Why was the beginning of the alliance possible?

HEB’s entrance into Mexico was also timed quite well. The alliance was developed in the late 90s; malnutrition was a huge source of concern for the country at the time. It was top five leading cause of child mortality at the time. Nearly 45% of Mexican children less than five years of age suffered from malnutrition in the year 1996. Organizations like BACM were desperate. HEB donated its “un-saleable” but “usable” goods to BACM; this was not practiced prior to HEB. Most of these products would be sold to a second or third world market.

3. Who were the most significant agents in triggering the collaboration?

Blanca Castillo, the Nutrition Services Assistant Manager and Director of BACM.
Eddie Garcia, HEB’s Food Assistance Program Director in Texas
Lola Landa, Public Relations Manager at HEB Monetrrey

4. What alternatives did they have?

An alternate approach that HEB could have taken would be to start at an entirely new project