Paris Baguette will raise prices on some of its breads, cakes and desserts in stages starting on the 25th, the company said on the 14th, as a string of price increases across South Korea's food industry fuels concern over consumer inflation in the second half of the year.
It is Paris Baguette's first price increase in about a year and a half, since February last year. The move covers 127 products in total — 86 types of bread and 41 cakes and desserts — with an average increase of 5.0%.
The suggested retail price of its flagship Sangmijong Whole-Grain Bread rises to 4,100 won from 3,900 won, while its castella increases 4.2% to 2,500 won from 2,400 won. Its My Number One Cake rises 2.9% to 36,000 won from 35,000 won. The company said it decided to adjust prices because of higher raw material and other operating costs.
Bakery chains have been raising prices one after another, citing higher costs for raw materials as well as logistics and packaging. Dunkin raised prices on 39 doughnut products by an average of 6.5% starting on the 2nd. Its Famous Glazed and Cacao Honey Dip rose to 1,900 won from 1,700 won, and its Creme Brulee Donut rose to 4,200 won from 4,100 won.
Tous les Jours, operated by CJ Foodville, will raise the suggested retail prices of 76 products including breads and cakes by an average of 8.2% starting on the 31st. Its Daily Milk Bread rises by 200 won and its Ttujoomom Egg Toast by 300 won. Samlip (005610) will also raise prices on some 50 bread products by an average of about 9% starting on the 1st of next month. Based on convenience store prices, its Jeongtong Boreumdal rises 11.1% to 2,000 won from 1,800 won, its Hershey's Choco Sand rises to 2,400 won from 2,200 won, and its Cheese Fresh Pang rises to 2,600 won from 2,500 won.
Prices are rising across food products more broadly, including instant noodles, ready meals and processed foods. CJ CheilJedang (097950) raised prices on 27 items across eight categories — including Hetbahn instant rice, dumplings and grilled fish — by an average of 8% starting late last month. Hetbahn rose 12%, dumplings 4.6% and grilled fish 8.4%. Nongshim (004370) raised factory prices on 43 brands including cup noodles, snacks and beverages by an average of 6.0%, 5.5% and 7.7% respectively, starting on the 1st. Ottogi (007310) said it will raise factory prices on 29 cup noodle items by an average of 6.7% and 16 dumpling items by an average of 7.7% starting on the 7th of next month.
