H-E-B LAUNCHES OWN LINE FOR BABY

Stephanie Fagnani

AUSTIN, Texas -- The H-E-B Grocery Co. here has just launched a new private-label line of products for infants.

To announce the new additions to the public, the retailer ran a full-page ad in a recent store circular picked up by SN at the unit at Brodie Lane and Wm. Cannon drive here. The heading, "Introducing H-E-B Baby Premium Baby Products," appeared at the top of the page, and items pictured included soy infant formula with iron, 100% apple juice, distilled water, and jars of baby food in a variety of flavors, including carrots, peaches, peas, applesauce and sweet potatoes.

The company declined to comment.

No prices were displayed in the circular, but an employee at a different H-E-B store in Austin told SN's undercover reporter that they are priced lower than the national brands -- about six cents lower in price on jars of food and approximately $2 cheaper in formula.

"From what I've heard it's pretty much the same thing; we send it to the same type of manufacturer and we just get a better price. That's how we're competing against the national brand," the store employee told SN.

The formula comes in powder, liquid concentrate and soy formulas and the water is available in three sizes.