Japan Raids Top Beer Makers Over Alleged Price-Fixing Cartel
Asahi, Kirin, and potentially Sapporo and Suntory, are under investigation for suspected violations of anti-monopoly laws.
Japanese authorities have raided the premises of the country's major beer producers, including Asahi and Kirin, on suspicion of forming a price-fixing cartel. The Japan Fair Trade Commission (JFTC) conducted the searches amid allegations that the companies colluded to raise beverage prices.
Asahi and Kirin have confirmed their facilities were searched and stated they would fully cooperate with the JFTC investigation. Reports indicate that Sapporo Breweries and Suntory Spirits may also have been subjected to raids, though these companies have not yet confirmed the searches.
The investigation reportedly focuses on price increases implemented by the companies in April of last year and again in October 2022. All four firms had announced price hikes, citing rising costs for raw materials, energy, and transportation.
Following the news of the investigation, shares for Asahi, Kirin, and Sapporo saw a decline on Wednesday. Suntory is a privately held company and therefore not publicly traded.
Kirin Holdings issued a statement confirming its subsidiary, Kirin Brewery Company, was searched for suspected violations of the Antimonopoly Act. The company stated it takes the matter seriously and is committed to cooperating with the JFTC. Kirin added that the impact on its financial results is currently undetermined and that material developments will be disclosed promptly.
Asahi Breweries also confirmed it was under investigation for suspected violations of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade, pledging full cooperation with the commission.