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Japanese antitrust authorities raid major brewers over price-fixing allegations

Oct 8, 6:22 AM1 min read

Drafted by AI from the sources below, fact-checked by the Ajako Taja Editorial Team · How we use AI

AI Summary

Authorities have raided Asahi, Kirin, Suntory, and Sapporo over suspicions of secret meetings to coordinate price hikes for beer and other beverages.

The Japan Fair Trade Commission raided the country's four largest breweries—Asahi, Kirin, Suntory, and Sapporo—this week over suspicions of colluding to fix beverage prices.

Officials from the Fair Trade Commission searched the offices of Asahi Breweries, Kirin Brewery, Suntory Beer, and Sapporo Breweries. The Guardian and BBC News reported that these four companies control more than 90% of Japan's domestic beer market. The Japan Times noted that the investigation into the suspected cartel involves a market worth more than ¥1 trillion annually.

The probe focuses on allegations that executives and sales managers met secretly over a long period to coordinate the timing and scale of price increases. According to the BBC, investigators are specifically looking at price hikes implemented in October 2022 and April last year. While the breweries previously cited rising costs for raw materials and logistics as the reason for these increases, the commission suspects they bypassed competition to ensure profits.

JFTC Secretary General Hiroo Iwanari confirmed the investigation had begun but declined to provide specific details while the preliminary review is underway. All four companies issued statements confirming the raids and pledged to cooperate fully with the authorities. Suntory apologized for any concern caused to stakeholders, while Kirin stated it takes the matter very seriously.

Following the news of the raids on Wednesday, shares in the publicly-listed companies—Asahi, Kirin, and Sapporo—fell. The Guardian reported that media sources described the case as particularly serious due to its impact on consumers at supermarkets, convenience stores, and restaurants. The investigation could potentially lead to criminal charges.

Background

The Japanese beer market saw sales reach ¥3.8tn in 2024, with traditional beer making up 30% of that total. This investigation follows a similar probe by the regulator in June involving alleged cartel activity among major Japanese ice cream makers.