Ton van Veen (Jumbo): ‘Making the Best Decision with the Knowledge at Hand’

How are we doing with today’s major challenges?
‘I think everyone realizes by now that there is more at stake than shareholder profitability. Of all the people I meet, there are few who are not concerned with the social challenges of our time, in areas such as climate, wealth distribution, social cohesion and combatting loneliness. Everyone is trying to make progress on these issues, whether out of genuine concern or due to laws and regulations. At the same time, I also notice that it sometimes leads to an enormous struggle, a struggle between opposing interests. I see many dilemmas.’

Can you give an example?
‘What is of benefit for one party is not necessarily of benefit for another. From a purely environmental perspective, for example, intensive livestock farming is the most efficient. But that is at odds with how we want to treat animals. Or take a cucumber wrapped in a plastic jacket. It is great for reducing food waste, but not so good in the fight against packaging waste. Which priority wins? At present, sustainability often comes with a higher price tag. People say they value sustainability, but as consumers, they still go for the cheaper option. And often, it is the same individuals making both claims. How do we fund this transition? As a company, you can shoulder the costs of sustainability to a limited extent. We recently stopped promoting meat products, which cost us millions in sales. Yet I do believe it is a meaningful step towards shifting from animal proteins to more plant-based ones. But: we can take one such step, certainly not three at once.’ 

Can you indicate how you balance those interests?
‘The field of stakeholders is so broad that a significant portion of my time as CEO is spent actively managing them. I deal with consumers who are concerned about the affordability of groceries or are very price conscious. I engage with our supply chains, from major international A-brand manufacturers to local fresh produce suppliers. Together, we must ensure a viable business model, one that works also for farmers and growers. I deal with our employees, whom I want to offer more today than yesterday, not only financially, but also in terms of the working environment and in terms of personal development. Then there are our franchisees, shareholders, regulators, politicians, and a variety of NGOs.’ 

To what extent do employees influence what Jumbo does?
‘Jumbo’s formula relies on 100,000 employees. They are our most valuable asset. This is particularly true for a family-owned company like Jumbo. We are not a corporate machine; we are a people-focused business. We see our employees as part of the Jumbo family, and we aim to extend that sense of warmth to our customers. That is a fundamental aspect of Jumbo. We have a soul. Especially in times of labor shortages, finding the right people to convey that warm family feeling is a challenge. It must be authentic, and we invest substantial time in this. When we acquire a new supermarket, we always bring everyone to Veghel. This sometimes raises eyebrows. ‘I have been working in a supermarket for 20 years, and a cauliflower is still a cauliflower, right?’ But it is not quite that simple. We strive to instill everyone with the Jumbo DNA.’

At the start of this series, we interviewed Anne Megens from the employers' organization AWVN. She said that ‘money, prestige, and purpose’ are the main motivators for employees...
‘There is a distinction between our stores, distribution centers and headquarters. The balance between money, prestige and purpose varies slightly across these areas. But when it comes to purpose, it is probably quite similar. We intentionally place responsibility with our employees throughout the organization. A store employee does not need to ask a manager for permission to give away a jar of peanut butter when necessary. You are allowed to use discretion for that. You are also allowed to make mistakes in the process. What does not fit with Jumbo is to only take action following instructions from above. I want to encourage entrepreneurship. As a leader, I try to give people a compass instead of a rule book.'

What needs to change in terms of personnel if you look ten years ahead?
‘Availability of labor is becoming an increasingly pressing issue. On top of that, consumers’ expectations from a company like Jumbo keep growing. They want better service. To give an example: seven percent of our revenue now comes from home delivery, while 93 percent comes from our physical stores. Yet, we employ 6,500 people in logistics for the stores and 5,000 for that seven percent home delivery. It is an incredibly labor-intensive process. This poses a significant challenge in the coming years. We cannot avoid hiring large groups of migrant workers to get all the work done, which in turn leads to wide-ranging societal discussions. And my influence on this is limited. Looking ahead, the only viable option is to, for example, mechanize distribution to the largest extent possible. I see this theme as one of my biggest challenges as CEO of Jumbo.’

You previously mentioned regulation as a motivator to action. What is your primary motivator for making ESG decisions for the next ten years?
‘It is very simple: you should always comply with laws and regulations. And we do. We are ahead of the curve with our CSRD reporting. We do not need CSRD requirements to motivate us to work on sustainability goals and to be transparent about it. But of course, it is heartening that a level playing field is created and that everyone now needs to report.

However, I am concerned about the complexity of all the laws and regulations. I employ colleagues full-time just to figure out what is expected of us. If the proposed regulations go through, supermarkets will soon need to prove that the production of commodities like coffee, soy, and cocoa has not led to deforestation. That will apply not only to our own brands, such as Jumbo’s for example – which I to a certain extent would understand – but also to the big A-brands on our shelves. Good luck with that.’ 

Is much of the solution not found in collaboration within the supply chain?
‘Absolutely. We collaborate extensively within the supply chain. To make that collaboration effective, I highlight three key elements that are important for this: predictability, trust and profitability. Predictability: we can invest in sustainable farms or agri-businesses, but if legislation keeps changing, you cannot know if you are making the right choices as a business. So, we need to make clear agreements at the beginning of the journey and those agreements should not be changed during the journey. This is a pressing responsibility for the political sphere.
We also need trust within the supply chain. We should not jump from supplier to supplier based solely on price. We must conclude long-term agreements with each other with a good earnings model for farmers and growers and trust each other in good times and bad.
Profitability is equally crucial. It is simply not sustainable if we do not have some money under the line at the end of the day. You need to make a profit to be sustainable. The unfortunate thing is that these three key elements are not in my control, even within the supply chain. Predictability, for instance, falls largely under government control.

Companies need a clear and reliable framework...
‘When that is missing, it creates a wait-and-see attitude. Look at farmers and growers: they are not investing right now because their future is so uncertain. When you are making investments just to comply with regulations, you start to think: ‘Maybe I should wait and see, because the rules might change in a year.’

In the past, angry farmers protested at your gates. Would better cooperation reduce that risk?
‘We have solid agreements with the farmers who supply us. Together with them and our other partners, we can build a robust supply chain that addresses social issues while ensuring a sustainable business model. But we only work with a relatively small percentage of farmers. More than 70 percent of agricultural production in the Netherlands is for export, and that is not something Jumbo can control. I have very little influence over farmers who do not supply us. Yet, they still protested here. You cannot expect private retailers to solve the entire agricultural sector’s problems. That is ultimately a job for the government.’ 

Looking ten years ahead with an ESG focus, is Jumbo doing enough today?
‘I am confident we will meet our Scope 1 reduction targets, and where possible we will also always strive to exceed our targets. The same goes for Scope 2. Scope 3 is trickier and harder to influence – because it is partly about the behavior of other organizations and the customer. We do not have 100 percent influence over that, which is one reason we stopped promoting meat. If we do not manage to transition from animal to plant-based proteins, we will not meet our Scope 3 objective. But: I cannot force a customer. We can only inspire or entice them. For example, that is what we aim to do with our new line of plant-based products and initiatives like the Jumbo Impact Fund, which supports suppliers with impactful ideas that contribute to CO₂ reduction.’

Jumbo is still a family business. How important is the shareholder, the family?
‘Very important, certainly when it comes to the choices we make in terms of sustainability. Stopping meat promotions is something a listed company might hesitate to do, as it involves a significant short-term cost. If you evaluate a company on a quarterly basis, you will have other considerations. Thankfully, our shareholders are content with lower returns if it means working towards the long term. We think in terms of generations rather than quarters.’ 

Until recently, Jumbo pioneers Frits and Karel van Eerd were still very much present here. Now, no one from the family is in the executive team. To what extent does that affect decision-making?
‘We are still 100 percent a family business and there is no indication that this will change. The directive I have received from the family is clear: guide this company through this phase, aiming for sustainable long-term growth. The family is still very involved. Colette Cloosterman-Van Eerd is the Chair of the Supervisory Board. She has an office here and is frequently around. Monique Groenewoud-Van Eerd also plays a significant role in shaping our company culture. And while Frits has not been in the office officially since September 2022, he remains engaged as a shareholder. Once every four weeks we sit together and go over the results. Then we talk about the here and now and the future. The fact that the family is no longer sitting at this table does not lessen their unwavering commitment to the long term.’

Has anything changed in the ESG front since Frits and Karel stepped back?
‘Karel and Frits accomplished a great deal and had a strong focus on the customer. That brought an incredible number of benefits to this company. I believe with Colette as Chair and me as CEO, the focus has broadened to include other stakeholder groups. The priorities have shifted slightly. Take sports sponsorships, for example. We supported Max Verstappen and the Jumbo-Visma skating and cycling teams – all champions under our banner. It was wonderful and brought us tremendous attention, but it is ultimately for the happy few. Max Verstappen, Jonas Vingegaard and Sven Kramer do not necessarily need Jumbo to get ahead in life. That is why we now use those sponsorship funds for local initiatives, which contribute to better neighborhoods by creating connections between people. Sport, but also eating together, is a good stimulant for connections. We are now moving from the narrow top to the broad. These are accents Colette and I have introduced. We want Jumbo to be at the heart of the community. Our 700 supermarkets are the cement in society; it is a place where people come together. We support initiatives in sustainability, healthy eating, physical activity, and combating loneliness. In 2019, we launched the so-called chatterbox initiative, where people can go for a chat. I think this can make a difference in the fight against loneliness.'

Is a family business better equipped to make the ‘right choices’ than publicly traded or private equity-owned companies?
‘I do not think you can make a general statement like that. There are good and bad examples of all types of companies. On the other hand, when I now see how Hein Schumacher at Unilever has to adjust his sustainability ambitions to meet shareholders' expectations... That is quite a turnaround. I think such a course-adjustment is less likely to be made in a family context. Unless continuity is at risk. I hope that ten years from now our shareholder will conclude that we have done the right thing now.'

In ten years, you will be 65. How would you look back?
‘What matters to me is that I can look in the mirror and say I made decisions with integrity and honesty. I can do no more than try to make the best decision with today's knowledge. Whether those decisions will still be seen as the right ones in ten years, unfortunately, we will have to wait and see. I suspect the conclusion might be that I should have done things differently. But now I can only make my considerations carefully, with a well-adjusted compass. In good conscience. There is little sense then in blaming yourself too much afterwards, I think.’

Lastly, let us talk about the broader social context in which you operate. Will it be easier or harder to be a CEO in the coming years?
‘One of my real concerns is that it is getting harder to attract and retain good leaders. Leaders are heavily scrutinized by public opinion. The slightest thing demands the resignation of a mayor, a minister or a CEO. Who would be willing to take on a leadership role in the public interest anymore? Who is willing to make that commitment? You can say criticism should roll off you, but we are all human. You can say: I do not care what people say or write about me, but most people do not like being criticized. I find myself being more cautious. When I spoke about a number of critical challenges in our society - issues surrounding labor migration, crime and shoplifting - I found sometimes that I was treading on thin ice. It is easy then to think let me rather keep my head down for now. Let me put it this way: I certainly do not envy Dick Schoof. If they asked me tomorrow if I wanted to take on the role of Dutch Prime Minister? I would probably tell them to keep looking.

This interview was published in Management Scope 01 2025.