Japan's antitrust regulator searched the offices of the country's four largest beer makers on Wednesday over suspicions they coordinated wholesale price increases.
Zoom in: The Japan Fair Trade Commission conducted on-site inspections at Asahi Breweries, Kirin Brewery, Sapporo Breweries and Suntory Spirits, all based in Tokyo. A source told AFP it is the first time the regulator has opened a compulsory probe into a wholesale beer pricing cartel.
- The four firms account for roughly 90% of Japan's beer market.
The backstory: All four raised prices repeatedly in recent years, citing the rising cost of raw materials, energy and transport. Investigators believe company representatives met periodically to discuss pricing and the timing of increases, and the Japan Times reports the inquiry centers on hikes in April last year and in October 2022.
What they're saying: "I do not deny that an investigation is being conducted today, but I'd like to refrain from commenting on the details as a preliminary review is underway," JFTC Secretary General Iwanari Hiroo said, according to local media.
- Kirin Holdings said its brewing subsidiary was searched "on suspicion of a violation of the Antimonopoly Act" and that it takes the matter very seriously. Suntory apologised for any concern caused and pledged full cooperation.
Yes, but: Kirin added that the impact on its financial results has yet to be determined. Shares in Asahi, Kirin and Sapporo fell after the news broke, while Suntory's beer business is privately held.
The big picture: The raid follows a June cartel investigation by the same regulator into six major Japanese ice cream makers, also over price increases that allegedly ran beyond what ingredient costs justified.
Why it matters: Japanese shoppers paid those increases at supermarkets and convenience stores, and the inquiry tests whether rising input costs were the real reason or a shared cover story for companies that supply nine in ten beers sold in the country.
