Japan raids beer giants over alleged price cartel

Japanese authorities conducted raids on four leading beer companies on Wednesday, suspected of colluding to raise beverage prices in violation of anti-monopoly laws, according to a source familiar with the investigation. The Japan Fair Trade Commission (JFTC) is probing Asahi Breweries, Kirin Brewery, Sapporo Breweries, and Suntory, which reportedly hold around 90% of the country's beer market share.

This marks the first instance of a wholesale beer pricing cartel investigation by the JFTC. The price-fixing is believed to have occurred over the past few years, with the four companies reportedly meeting periodically to discuss pricing and timing. Beer prices have been raised multiple times in recent years, with companies citing rising costs of raw materials and logistics as justification.

While all four firms confirmed they are under investigation and intend to cooperate fully, Suntory stated it is undergoing an on-site inspection by the Fair Trade Commission regarding suspected breaches of the anti-monopoly act in connection with its alcohol trading activities. This follows a similar cartel probe earlier this year by the JFTC into Japan's six major ice cream firms, which were accused of coordinating price hikes beyond what was justified by a surge in raw ingredient costs.