"This Could Ruin Us All"... The '470-Won Baguette' Sparks Controversy, Echoing the '990-Won Salt Bread' Debate [The Secret of Bread Prices]

Controversy Over 'Ultra-Low-Priced Bread' Spreads
French Baking Industry Criticizes Cheap Mass-Produced Bread
"There Are No People in Supermarket Bread, Only Machines"

Editor's NoteAccording to the consumer price trends released by Statistics Korea, while the price of processed foods rose by 4.1% year-on-year in May, bread prices surged by 6.4%. The bread consumer price index reached 138.48, marking a 38.48% increase over five years compared to the base year of 2020 (100). This rise outpaces even tteokbokki and fried chicken, snacks beloved by Koreans. Bread, once a snack enjoyed by everyone, has now become a luxury that is difficult to choose without hesitation. How did the price of bread in Korea end up rising so steeply and continuously?

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Following the controversy over "990-won salt bread" in Korea, similar debates over ultra-low-priced bread are spreading globally, such as the emergence of the "470-won baguette" in France. While ultra-low prices are made possible by mass production and high-volume, low-margin sales, criticism follows as this ultimately threatens the survival of small bakeries. Some consumers have also raised complaints, questioning whether bakeries have been making excessive profits all along.

French "470-Won Baguette" Sparks Industry Criticism

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Recently, the French daily Le Figaro reported that some large supermarkets are facing strong backlash from bakers after offering factory-produced baguettes at ultra-low prices. In early September, major supermarkets such as Lidl and Aldi introduced baguettes priced at 29 cents (about 470 won), which is about 70% cheaper than the average bakery price of 1.09 euros (about 1,800 won), igniting the "ultra-low-priced baguette" debate.

Dominique Anract, president of the National Confederation of French Bakery and Pastry (CNBP), criticized this as a "bait strategy to attract customers that will lower the standards of the entire industry." He pointed out that while artisanal bakeries spend hours on kneading and fermentation and labor costs account for over 40% of production costs, large supermarkets can mass-produce bread through automated processes, making it structurally impossible to compete on price. He added, "Supermarkets can produce 10,000 baguettes per hour, but bakers can only make 400 to 600 per day," and emphasized, "There are no people in supermarket bread-only machines."

Local bakers are particularly opposed because the baguette is a "traditional bread" with strict manufacturing standards. In 1993, the French government established clear criteria for "traditional baguette" production through bread-related regulations: ▲ No artificial additives other than flour, water, salt, and yeast are allowed; ▲ Frozen dough is prohibited; ▲ The dough must be kneaded and baked directly at the point of sale.

However, the 29-cent baguette at the center of the controversy is classified as a "regular baguette" that does not meet these requirements, and bakers argue that supermarket products are qualitatively different from the artisanal bread of local bakeries. Anract criticized, "The baguette embodies the know-how of artisans, but supermarkets are replacing this symbol of French culinary culture with cheap industrial bread."

Similarities with Shuka World "990-Won Salt Bread" Controversy

Display case of 'ETF Bakery,' which operated as a pop-up store in Seongsu-dong, Seongdong-gu, Seoul, on the 1st of last month. Photo by Midam Heo damdam@

This controversy closely resembles the recent debate in Korea over the ultra-low-priced bread offered by YouTuber Shuka World. Last month, Shuka World opened a pop-up store called "ETF Bakery" and introduced "990-won salt bread" and other items. Compared to the typical market price of around 3,000 won for salt bread, this was much cheaper. However, some consumers questioned, "Have bakeries been making excessive profits all this time?" while small business owners countered, "This price does not reflect the realities faced by small bakeries."

The core of Shuka World's ultra-low-price strategy is ▲ minimizing the use of expensive raw materials ▲ reducing fixed costs ▲ relying on high-volume, low-margin sales. The 990-won salt bread lowered production costs by using both butter and margarine, and simplified the bread's shape and packaging to cut labor costs. Shuka World also explained, "This price is only possible through high-volume sales," adding, "The maximum daily production is 2,000 pieces." In contrast, individual bakeries struggle with mass sales and face burdensome rent and labor costs, making it difficult to lower prices. As a result, they are structurally forced to rely on differentiation strategies such as developing unique menu items or using premium ingredients.

As the controversy over ultra-low-priced sales spread, the pop-up store closed after just eight days of operation. Shuka World posted on Instagram, "We deeply apologize for any inconvenience and disappointment caused by shortcomings in our operation," and added, "We will take your criticism and advice to heart and strive to return in a more mature manner."

Bread Price Debate in the UK: "Same Ingredients, Stark Price Differences"

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The debate over bread prices continues worldwide. In the United Kingdom, controversy has arisen over the stark price gap between ultra-cheap white bread (45 pence, about 850 won) and expensive sourdough (5 pounds, about 9,500 won), with some arguing that this disparity leads to social inequality. The Guardian reported in March last year, "How can a food that requires only four ingredients-flour, water, yeast, and salt-show such a dramatic price difference?" The article explained that the difference lies in the quality of raw materials, which ultimately contributes to social inequality.

For example, a 5-pound sourdough is made from pesticide-free wheat and undergoes a long natural fermentation process, resulting in a nutrient-rich product without additives. In contrast, the 45-pence white bread is made from modified wheat processed quickly for mass production, losing most of its nutrients and containing additives such as preservatives and emulsifiers. The Guardian emphasized, "Everyone should be able to eat healthy and affordable bread."

Meanwhile, in Iran this May, bakers took to the streets, protesting that current bread prices make it impossible to earn a living. Soaring prices for raw materials such as flour and frequent power outages that spoil dough have severely undermined bakers' profitability. Due to government subsidies and price controls, the Iranian bakery industry is unable to adjust bread prices freely. Recently, even subsidy payments have been delayed, further intensifying bakers' frustrations. At the protests, bakers chanted, "We are bakers, not slaves."