Houchens Industries
Encyclopedia
Houchens Industries, is an American employee-owned company, in business since 1918 when it began as a small grocery operated by founder Ervin Houchens in rural Barren County, Kentucky
. The company is headquartered in Bowling Green, Kentucky
. The company runs about 425 grocery and convenience stores. Sales in 2006 were just under $2 billion., with approximately 10,500 employees.
, owning and operating convenience store
s (Jr. Food Stores
, Tobacco Shoppe) and supermarkets (Houchens Markets, IGA
, Save-A-Lot
, Mad Butcher). In 2004, Houchens acquired Food Giant supermarkets, which operates stores under the Food Giant, Market Place and Piggly Wiggly
name.
In recent years, Houchens Industries has diversified greatly, with acquisitions of a Bowling Green-based construction
company, as well as recycling
, insurance
, cigarette
manufacturing, and warehousing
.
In 2004, Houchens acquired Hitcents
, an Internet
marketing and development company founded by two high school
students from Bowling Green, and now headquartered at the Western Kentucky University
Center for Research and Development (which is itself supported by Houchens Industries).
In 2007, the company sold its Commonwealth Brands subsidiary - the fourth-largest cigarette producer in the United States - to the British company Imperial Tobacco Group PLC
, for $1.9 billion. It had acquired the company in 2001; it was the first time that Houchens had ever sold one of its acquisitions.
Diversification continued in 2007 when Houchens announced that it would acquire Hilliard Lyons
, a full-service stock broker
and investment firm based in Louisville
, from PNC Financial Services
. The sale was completed in March 2008.
In January 2008, Houchens announced that it would acquire 14 convenience stores which sell Shell Oil products from Bowling Green businessman Jerry Browning. The stores are located in Bowling Green and surrounding towns.
In April 2008, Buehler Foods
of Jasper, Indiana
, signed a letter of intent to sell the company to Houchens.
In January 2010, White's Grocery, in the Tri-Cities, Tennessee
area sold their local grocery chain to Houchens.
The company traces its beginnings to 1917, when founder Ervin Houchens opened his first store ("BG Wholesale") at the age of 19 in a shed in southern Kentucky. This shed, along with other historical structures, has been well preserved and is open to the public. He sold the company in 1983. The current CEO, Jimmie Gibson, began with the company in 1965, as an accountant.
Barren County, Kentucky
As of the census of 2000, there were 38,033 people, 15,346 households, and 10,941 families residing in the county. The population density was . There were 17,095 housing units at an average density of...
. The company is headquartered in Bowling Green, Kentucky
Bowling Green, Kentucky
Bowling Green is the third-most populous city in the state of Kentucky after Louisville and Lexington, with a population of 58,067 as of the 2010 Census. It is the county seat of Warren County and the principal city of the Bowling Green, Kentucky Metropolitan Statistical Area with an estimated 2009...
. The company runs about 425 grocery and convenience stores. Sales in 2006 were just under $2 billion., with approximately 10,500 employees.
Operations
The company is best known as a grocerGrocer
A grocer is a bulk seller of food. Beginning as early as the 14th century, a grocer was a dealer in comestible dry goods such as spices, pepper, sugar, and cocoa, tea and coffee...
, owning and operating convenience store
Convenience store
A convenience store, corner store, corner shop, commonly called a bodega in Spanish-speaking areas of the United States, is a small store or shop in a built up area that stocks a range of everyday items such as groceries, toiletries, alcoholic and soft drinks, and may also offer money order and...
s (Jr. Food Stores
Jr. Food Stores
Jr. Food Stores is a chain of convenience stores operating in south central Kentucky and northern Middle Tennessee, with approximately 41 retail locations. It is owned by Houchens Industries.The chain is not related to Jr...
, Tobacco Shoppe) and supermarkets (Houchens Markets, IGA
IGA (supermarkets)
IGA is a brand of grocery stores active in more than 30 countries. Contrasting with the chain store business model, IGA operates as a franchise through stores that are owned separately from the brand. Many of these stores operate in small town markets and belong to families that manage them...
, Save-A-Lot
Save-A-Lot
Save-a-Lot is a discount supermarket chain headquartered in Earth City, Missouri, near St. Louis, United States. The subsidiary of Supervalu comprises approximately 1,250 stores in the United States with over $4 billion in annual sales....
, Mad Butcher). In 2004, Houchens acquired Food Giant supermarkets, which operates stores under the Food Giant, Market Place and Piggly Wiggly
Piggly Wiggly
Piggly Wiggly is a supermarket chain operating in the Midwestern and Southern regions of the United States, run by Piggly Wiggly, LLC, an affiliate of C&S Wholesale Grocers. The current company headquarters is in Keene, New Hampshire....
name.
In recent years, Houchens Industries has diversified greatly, with acquisitions of a Bowling Green-based construction
Construction
In the fields of architecture and civil engineering, construction is a process that consists of the building or assembling of infrastructure. Far from being a single activity, large scale construction is a feat of human multitasking...
company, as well as recycling
Recycling
Recycling is processing used materials into new products to prevent waste of potentially useful materials, reduce the consumption of fresh raw materials, reduce energy usage, reduce air pollution and water pollution by reducing the need for "conventional" waste disposal, and lower greenhouse...
, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, cigarette
Cigarette
A cigarette is a small roll of finely cut tobacco leaves wrapped in a cylinder of thin paper for smoking. The cigarette is ignited at one end and allowed to smoulder; its smoke is inhaled from the other end, which is held in or to the mouth and in some cases a cigarette holder may be used as well...
manufacturing, and warehousing
Warehouse
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc. They are usually large plain buildings in industrial areas of cities and towns. They usually have loading docks to load and unload...
.
In 2004, Houchens acquired Hitcents
Hitcents
is a technology and custom software development company in Bowling Green, Kentucky. Hitcents was established by twin brothers Chris and Clinton Mills in 1999.-History:...
, an Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
marketing and development company founded by two high school
High school
High school is a term used in parts of the English speaking world to describe institutions which provide all or part of secondary education. The term is often incorporated into the name of such institutions....
students from Bowling Green, and now headquartered at the Western Kentucky University
Western Kentucky University
Western Kentucky University is a public university in Bowling Green, Kentucky, USA. It was formally founded by the Commonwealth of Kentucky in 1906, though its roots reach back a quarter-century earlier....
Center for Research and Development (which is itself supported by Houchens Industries).
In 2007, the company sold its Commonwealth Brands subsidiary - the fourth-largest cigarette producer in the United States - to the British company Imperial Tobacco Group PLC
Imperial Tobacco
Imperial Tobacco is a global tobacco company headquartered in Bristol, United Kingdom. It is the world’s fourth-largest cigarette company measured by market share , and the world's largest producer of cigars, fine-cut tobacco and tobacco papers...
, for $1.9 billion. It had acquired the company in 2001; it was the first time that Houchens had ever sold one of its acquisitions.
Diversification continued in 2007 when Houchens announced that it would acquire Hilliard Lyons
Hilliard Lyons
J.J.B. Hilliard, W.L. Lyons, LLC is a full service investment firm, based in Louisville, Kentucky, and founded in 1854. The company started as two separate companies, both located in Louisville. In 1965, the companies merged to create the current company...
, a full-service stock broker
Stock broker
A stock broker or stockbroker is a regulated professional broker who buys and sells shares and other securities through market makers or Agency Only Firms on behalf of investors...
and investment firm based in Louisville
Louisville, Kentucky
Louisville is the largest city in the U.S. state of Kentucky, and the county seat of Jefferson County. Since 2003, the city's borders have been coterminous with those of the county because of a city-county merger. The city's population at the 2010 census was 741,096...
, from PNC Financial Services
PNC Financial Services
PNC Financial Services Group, Inc. is a U.S.-based financial services corporation, with assets of approximately $264.3 billion...
. The sale was completed in March 2008.
In January 2008, Houchens announced that it would acquire 14 convenience stores which sell Shell Oil products from Bowling Green businessman Jerry Browning. The stores are located in Bowling Green and surrounding towns.
In April 2008, Buehler Foods
Buehler Foods
Buehler Foods, Inc., is an American grocery store chain based in Jasper, Indiana.Buehler Foods was founded in 1940 by Gabe and Marge Buehler in Jasper, Indiana. The Buehlers operated a single store, but the company eventually grew to own a total of 22 stores in Illinois, Indiana and Kentucky...
of Jasper, Indiana
Jasper, Indiana
- Strassenfest :The Jasper Strassenfest is a four-day event held annually during the first weekend in August. The "Fest" is a celebration between Jasper and its German sister-city Pfaffenweiler, a small village in southwest Germany. Many citizens of Pfaffenweiler travel to Jasper around this time...
, signed a letter of intent to sell the company to Houchens.
In January 2010, White's Grocery, in the Tri-Cities, Tennessee
Tri-Cities, Tennessee
In Tennessee and Virginia the name "Tri-Cities" refers to the region comprising the cities of Kingsport, Johnson City and Bristol and the surrounding smaller towns and communities in Northeast Tennessee and Southwest Virginia...
area sold their local grocery chain to Houchens.
History
Other
- The company has been completely owned by its employee stock ownership plan (ESOP) since 1988. Employees select members of the board of directors and vote on the sale of any substantial assets.
- Houchens Industries sponsors the annual Kentucky High School Athletic AssociationKentucky High School Athletic AssociationThe Kentucky High School Athletic Association has been the governing body of Kentucky high school athletics since 1917. Located in Lexington, the organization sanctions competition in the following sports:*Boys and girls**Basketball**Bowling*...
's Girls' "Sweet 16" BasketballBasketballBasketball is a team sport in which two teams of five players try to score points by throwing or "shooting" a ball through the top of a basketball hoop while following a set of rules...
Championship Tournament, held annually at WKU's E.A. Diddle Arena.
- Houchens also contributes heavily to the community, most notably Western Kentucky UniversityWestern Kentucky UniversityWestern Kentucky University is a public university in Bowling Green, Kentucky, USA. It was formally founded by the Commonwealth of Kentucky in 1906, though its roots reach back a quarter-century earlier....
, even having acquiring naming rights to WKU's football home, L.T. Smith Stadium in Bowling Green.