Paris Baguette to cut prices on 11 bakery items after presidential remark

(Yonhap)

Paris Baguette said it will lower prices on bread and cake products by around 5 percent, becoming the first major bakery chain in South Korea to reflect lower flour costs following a government probe into alleged collusion among milling companies.

According to the company on Thursday, prices for six bread items and five cakes will be reduced starting March 13.

Based on recommended retail prices for finished products, sweet red bean bread will fall from 1,600 won ($1.12) to 1,500 won, soboro bread from 1,600 won to 1,500 won and custard cream bread from 1,600 won to 1,500 won. Whole grain oat loaf will drop from 4,200 won to 3,990 won, three-slice castella from 3,500 won to 2,990 won and French boussé from 2,500 won to 1,500 won.

Five popular character-themed cakes will see price cuts of up to 10,000 won. Huntix Golden Cake will be reduced from 39,000 won to 29,000 won, while Soda Pop Cake will fall from 33,000 won to 25,000 won.

The company also plans to launch a value-priced croissant at 1,000 won next month.

A Paris Baguette official said that despite continued cost pressures, the company decided to lower prices to ease the burden on consumers and contribute to price stability.

Milling companies have recently moved to cut supply prices in line with the government’s push to stabilize inflation. CJ CheilJedang lowered prices of its business-to-consumer starch syrup products by up to 5 percent, after reducing business-to-business starch syrup prices by 3 to 5 percent last month. Major suppliers including Samyang Corp. and Daehan Flour Mills have also joined the move, reflecting declines in global wheat futures and stabilizing raw sugar prices.