Paris Baguette to break into Italy in deal with Pascucci

SPC Group Chairman Hur Young-in, right, and Pascucci CEO Mario Pascucci browse around SPC Group's major bakery outlets in Seoul on Sunday. [SPC GROUP]

Korean bakery chain Paris Baguette is advancing into Italy in partnership with local coffee franchise Pascucci, as announced by the bakery's owner, SPC Group, on Sunday.

SPC Group Chairman Hur Young-in and Pascucci founder and CEO Mario Pascucci signed a memorandum of understanding in Seoul on Sunday that includes Pascucci's master franchise deal with Paris Baguette in Italy, the Korean food and beverage company said.

The partnership is the result of one year of negotiations, according to SPC Group.

Italy is the third European destination for Paris Baguette after France and Britain, which have been well-received with its array of bakery products, some of which have an unique Korean twist such as danpatbbang, or buns stuffed with red bean paste.

The partnership between SPC and Pascucci goes back to 2002 when the bakery's owner introduced the Italian espresso brand to Koreans by operating its franchises here. Pascucci, which was founded in 1883 in Monte Cerignone in the northeast region of Italy, operates in 17 countries.

"The partnership between the two companies is expected to get stronger as Pascucci will now help SPC's Paris Baguette advance into Italy and help it spearhead the European market," the Korean company said in a release Sunday.

The Korean bakery's Italian foray will also get boost from the 140th anniversary of the two countries' diplomatic relationship this year.

SPC's Hur met with Ferdinando Gueli, the Italian trade commissioner in Korea, and Emilia Gatto, the Italian ambassador to Korea, last week where he pledged full-fledged support for various business interactions between the two countries.

"Italy is an important European market with the biggest bakery industry and versatile bread culture, and it is a real pleasure and comforting to have Pascucci, which we have long worked with, as a partner supporting the Italian advancement," Hur said.

The Pascucci CEO said it will do its best so that Paris Baguette can settle successfully in Italy as well as other European countries.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]