Japan Targets Beer Giants in Price-Fixing Raid

Tokyo — Japanese authorities have conducted raids on the headquarters and facilities of the nation’s largest beer manufacturers amid allegations of a price-fixing cartel. The Japan Fair Trade Commission (JFTC) carried out the searches, which target Asahi, Kirin, and Suntory Spirits, with reports indicating that Sapporo Breweries was also affected.

Asahi, Kirin, and Suntory confirmed to the BBC that their premises were searched and stated they would fully cooperate with the government agency. Sapporo Breweries, which was contacted for comment, has reportedly been included in the operation as well.

The investigation focuses on coordinated price increases implemented by the companies in April of last year and in October 2022. According to the Japan Times, the firms justified the hikes by citing rising costs for raw materials, energy, and transportation. However, regulators are examining whether these companies colluded to fix prices, potentially violating Japan’s Antimonopoly Act.

Following news of the probes, shares in Asahi, Kirin, and Sapporo all fell on Wednesday. Suntory Spirits, which is not publicly listed, did not see a market reaction but issued a statement confirming an on-site inspection related to a potential violation of competition laws regarding domestic alcohol trade practices.

In a statement, a spokesperson for Suntory apologized for any concern caused to customers and stakeholders, pledging full cooperation with the JFTC. Kirin Holdings described the situation as being taken “very seriously” and noted that the impact on financial results has not yet been determined, promising prompt disclosure of any material developments.

Asahi Breweries also confirmed it is subject to the JFTC’s investigation and committed to full cooperation. The JFTC has been approached for additional comment regarding the ongoing probe.