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H-E-B stands for Howard E. Butts. The original owners, Charles C. Butts and Florence Butts named the store after their son Howard E. Butts, back in 1905 when the first store was in Kerville.

Very few people in modern times want to shop at a store called Butt's. Thus, the recent advertising campaign creaded the acronym above as a plausible replacement.

If you click the related link, you can read a little history about the store from their own website.

H.E. Butt Grocery Company is a privately held San Antonio, Texas-based supermarket chain with over 300 stores throughout Texas and northern Mexico.

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