Dutch supermarket chain Jumbo has terminated its contract with bread supplier Bake Five as it looks to reduce purchasing costs.
Set to come into effect in 2026, the move ends a relationship of more than 20 years and puts 700 Bake Five bakery jobs at risk.
According to Het Financieele Dagblad (FD), the supermarket has been grappling with rising inflation that has hit margins, leading the retailer to seek out lower wholesale prices.
Jumbo’s new supplier, Bakkerij Goedhart, is part of a family holding company with the largest industrial bakery in the Netherlands.
According to the FD, Bake Five holds roughly 25% of the Dutch bread market share and Goedhart holds around 40%.
A spokesperson for Jumbo said: “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.
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By GlobalData“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.”
A spokesperson for Bake Five issued a joint statement on behalf of all five bakeries that form 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.
“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 set up to support this collaboration and over 700 employees are committed to it every day.”
The spokesperson said the discussions are ongoing about “a fair termination of the partnership”.
However, they added: “The very short notice and uncertainty on several fronts are making that process particularly challenging.”
