Japan beer giants raided over suspicions they colluded to set the price of beverages

Japanese authorities have raided the country’s four biggest breweries over suspicions they colluded to set the price of beer and other beverages – a practice media reports said could have forced drinkers to pay over the odds.Officials from the Fair Trade Commission this week searched the offices of Asahi Breweries, Kirin Brewery, Suntory Beer and Sapporo Breweries – which together control more than 90% of the domestic market. The quartet are suspected of violating the anti-monopoly law.The commission’s secretary general, Hiroo Iwanari, confirmed an investigation had begun, but declined to give details. The companies said they would cooperate with authorities.The commission is understood to have launched the investigation given the potential effect the alleged cartel has had on prices after wholesalers sell their products on to supermarkets, convenience stores, bars and restaurants, the Mainichi Shimbun said.Japanese media quoted sources as saying that sales managers and other executives from the breweries were suspected of meeting secretly over a prolonged period to coordinate on the timing and scale of retail price increases, which ranged from several yen to several dozen yen a time.Prices for beer and a low-malt version called happoshu have risen multiple times to reflect the rising cost of raw materials and logistics. The commission suspects the breweries bypassed proper pricing competition and collaborated to ensure they made a profit, the Mainichi said.Alcohol consumption in Japan has declined in recent decades as a result of depopulation and changes in drinking habits among younger people. But sales still reached ¥3.8tn ($24.3bn) in 2024, with beer accounting for 30% of the total, followed by happoshu and third-category beer, which contains little or no malt, with a combined 11.9%The four breweries have all raised their prices at the same time, most recently in April last year, citing the rising cost of materials and distribution. Prices also rose in October 2022 and October 2023.Shares in Asahi, Kirin, Suntory and Sapporo fell after Wednesday’s raids – the first investigation of its kind involving the food and beverage industry.Japanese media quoted sources as saying the commission had judged the case to be particularly serious given its potential impact on consumers, adding that the probe could result in a criminal complaint.The probe comes three months after the commission raided six Japanese ice-cream makers over allegations of operating a cartel.