Dutch supermarket chain Jumbo has decided to terminate its long-standing contract with bread supplier Bake Five, aiming primarily to reduce purchasing costs.
This change will take effect in 2026, ending a partnership that has lasted over 20 years and placing 700 jobs at Bake Five at risk.
As reported by Het Financieele Dagblad (FD), Jumbo is grappling with the impact of rising inflation that has significantly affected its profit margins. Consequently, the retailer seeks to secure lower wholesale prices.
Jumbo’s new supplier, Bakkerij Goedhart, is part of a family holding company that operates the largest industrial bakery in the Netherlands.
According to data from FD, Bake Five commands approximately 25% of the Dutch bread market share, whereas Goedhart holds about 40%.
A spokesperson for Jumbo stated, “We continuously strive to improve every day – for our customers and for the future of our company. One of the ways we aim to achieve this is by strengthening collaboration within the chain and establishing long-term agreements that enable our partners to invest in our shared ambitions, particularly in areas such as quality, availability, and sustainability.”
The spokesperson continued, “Following discussions with our partners in the fresh bread supply chain, we have decided to expand and deepen our collaboration with one of them, Bakker Goedhart. This enhanced partnership will take effect as of mid-2026.”
In response, a spokesperson for Bake Five issued a joint statement on behalf of the five bakeries in the co-operative: “Jumbo has unilaterally terminated its partnership with Bake Five. For over twenty years, our bakeries have been supplying fresh bread to Jumbo stores every day — a key product in any supermarket’s fresh range.”
Furthermore, the spokesperson emphasized, “Ensuring that high-quality bread is on the shelves every morning requires close coordination between our bakeries across the country and Jumbo’s more than 650 stores.”
The bakeries have been specifically structured to support this collaboration, with over 700 employees committed to its success.
While the discussions regarding a “fair termination of the partnership” are ongoing, the spokesperson noted, “The very short notice and uncertainty on several fronts are making that process particularly challenging.”
