Japan beer giants raided over alleged price-fixing cartel

What the report says

Japanese competition authorities have searched the premises of several major beer producers, including Asahi and Kirin, over allegations that they coordinated to push up beverage prices. The BBC reports that Asahi and Kirin both confirmed the raids by the Japan Fair Trade Commission and said they would cooperate with the investigation.

The reported probe may also involve Sapporo Breweries and Suntory Spirits, although those companies have not publicly confirmed details. Suntory is not listed on the stock market, while shares in Asahi, Kirin and Sapporo fell after news of the inquiry emerged. According to reports cited by the BBC, the investigation is focusing on price increases announced in April last year and October 2022.

All four companies had pointed to higher costs for raw materials, energy and transportation when explaining earlier price rises. Kirin said its brewing subsidiary had been searched on suspicion of violating Japan’s antimonopoly law, while Asahi said it was under investigation for a suspected breach of fair trade rules.

The case matters because Japan’s beer market is dominated by a small number of large brands, and any finding of cartel-like conduct could bring financial and reputational consequences. The competition commission has not publicly commented in the BBC report.