Japan beer giants raided over alleged price-fixing cartel

Japanese authorities have conducted searches at the headquarters of the country's leading beer producers, Asahi, Sapporo, Kirin, and Suntory, amid allegations of price-fixing. The Japan Fair Trade Commission (JFTC) confirmed the raids, stating that the companies would cooperate fully with the investigation. The beer giants dominate Japan's market, with their products widely available in supermarkets and convenience stores nationwide.

Shares of Asahi, Kirin, and Sapporo fell after the news of the probe broke on Wednesday. Suntory's beer division, not publicly-traded, is also under scrutiny. The JFTC's Secretary General, Iwanari Hiroo, declined to comment on the specifics, citing an ongoing preliminary review. The investigation appears to focus on price hikes in April 2021 and October 2022, with all companies citing increased raw material costs and other factors like energy and transportation as justification for price adjustments.

Kirin Holdings disclosed that its subsidiary, Kirin Brewery Company, was searched "on suspicion of a violation of the Antimonopoly Act." The company expressed its serious concern about the matter and pledged full cooperation with the JFTC. Suntory confirmed an on-site inspection linked to potential violations of Japan's Antimonopoly Act regarding alcohol trade practices, apologizing for any inconvenience caused to customers and partners, and promised full cooperation with the investigation.

Asahi also confirmed its involvement in the investigation, vowing to cooperate fully with the regulator. This follows a prior JFTC probe in June, which investigated alleged cartel activity among Japan's top ice cream producers, including Meiji and Pocky maker Ezaki Glico.