The deal coincides with the bakery announcing the launch of a two-week advertising campaign with ITV Wales.
Starting from 14 May, the advert makes use of slow motion photography to emphasise its “use of slow dough to make better bread” message.
Village Bakery will supply the new Tesco stores with a range of breads including its barm cake, Welsh batch and village-sliced products. The deal adds to existing contracts with Asda and 116 Co-operative stores.
Catherine Bletcher, account manager at Village Bakery, said: “Although we have grown considerably, we are still a family-run firm of craft bakers. We make a loaf of bread with traditional methods and traditional values, and it’s all about the time we take in letting the bread ferment.
"With our slow dough rolls and bread, we make a sponge which ferments for 18 hours before we make the bread, and it just adds to the flavour. Hopefully, that will be reflected in the TV adverts. It tries to emphasise the care and attention we take in making our bread and also emphasises the slow dough principle.”
Village Bakery recently submitted plans to build a new £16m plant next to its two existing bakeries.