Twomey’s Bakery has renewed its contract with supermarket chain Aldi for a further three years in a deal worth almost €5m to the Limerick company.

The Dromcollogher company has been an Aldi supplier since 2019, providing breads, baked scones, tarts, and sponges in all the retailer’s shops. With the new contract, Twomey’s will also introduce its rhubarb crumble into its Aldi range, complementing its ancient grain batch loaf, apple tart, fruit scones, apple sponge and apple crumble.

Twomey’s has invested in new wrapping and labelling units along with a top-of-the-range fridge and freezer unit, an investment which it says was made possible by the security provided by its relationship with the German retailer.

The bakery was founded in 1901 and employs 20 full-time staff, and says its traditional family recipes have been passed down through the generations.

Managing director Patrick Twomey said: “Like all producers, we have faced difficulties in our supply chain in recent months, with increases in the cost of ingredient prices, along with transport and energy costs proving a real challenge.

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“This new contract is a big boost for our business, providing a huge degree of certainty and security. We are grateful for Aldi’s continued support and partnership.”

Aldi’s group buying director John Curtin commented: “Twomey’s Bakery has supplied our Irish stores for almost three years now, and we are delighted to further extend our partnership with a new €5m deal.

“Twomey’s saw a year-on-year increase of 25% in its sales to Aldi in 2021, and we are delighted to continue supporting the local company’s growth into the future. At Aldi, we are committed to supporting our Irish producers so that our customers can enjoy the very best products Ireland has to offer.”

The retailer has invested more than €5.5m in its ‘Grow with Aldi’ supplier development programme since 2018, which offers up-and-coming artisan Irish food and drink producers the chance to have their products listed in its 150 stores. It works now with more than 330 food and drink producers here and spent more than €1 billion with its Irish suppliers last year.