Japanese media such as The Daily News and The Guardian reported on October 8 that Japanese authorities conducted a raid on four major beer factories on the 7th, suspecting them of colluding to set prices for beer and other beverages. The media reported that this practice could force consumers to pay excessively high prices.
Japanese Fair Trade Commission officials searched the offices of Asahi Beer, Kirin Beer, Suntory Beer, and Sapporo Beer this week. These four companies collectively control more than 90% of the domestic beer market and are suspected of violating the Anti-Monopoly Law.
According to the Daily News, the committee initiated an investigation because this suspected monopoly alliance could affect prices when wholesalers resell products to supermarkets, convenience stores, bars, and restaurants.
Japanese media cited sources saying that the sales managers and other executives of these breweries were suspected of meeting secretly for a long time to coordinate the timing and extent of price increases at retail stores, with each increase ranging from a few yen to several dozen yen.
Beer and a low-malt beer called stout have been subject to multiple price increases, with the reason being “rising raw material and logistics costs”. According to the Daily News, the committee suspects that these breweries have bypassed normal pricing competition and colluded with each other to ensure profits.
In recent decades, due to population decline and changes in young people's drinking habits, alcohol consumption in Japan has decreased. However, sales in 2024 still reached 3.8 trillion yen (approximately 161 billion yuan), of which beer accounted for 30%. Next, sparkling wine and third-class beers with very little or no malt made up the remaining 11.9% of total sales.
These four breweries increased prices simultaneously, most recently in April last year, citing rising raw material and distribution costs. Price increases were also announced in October 2022 and October 2023.
After the search on the 7th, the stock prices of Asahi, Kirin, Suntory, and Sapporo declined. This is the first such investigation in Japan's food and beverage industry.
Japanese media quoted sources as saying that the committee believes the case is particularly serious, as it could have an impact on consumers, and indicated that the investigation may lead to criminal charges.
