Japan’s antitrust watchdog raids four breweries controlling more than 90% of the domestic beer market over suspected price-fixing

The Japan Fair Trade Commission raided Asahi, Kirin, Suntory, and Sapporo over suspected price-fixing, targeting the four breweries that dominate the country’s beer market.

The four firms together control more than 90% of Japan’s domestic beer market, making any coordination among them a matter of acute concern for regulators. JFTC Secretary General Iwanari Hiroo confirmed an investigation was underway but declined to give details. “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,” Iwanari said, according to local media.

Coordinated price increases under scrutiny

The investigation centres on price increases in April last year and October 2022, and also covers price increases in October 2023. Sales managers and other executives from the breweries are suspected of meeting secretly over a prolonged period to coordinate the timing and scale of retail price increases ranging from several yen to several dozen yen, according to Japanese media reports. The companies had raised prices citing the rising cost of raw materials, energy, and transportation. The commission suspects the breweries bypassed proper pricing competition and collaborated to ensure profit, per the Mainichi Shimbun. The commission judged the case particularly serious given its impact on consumers, and the probe could result in a criminal complaint. It is the first investigation of its kind involving the food and beverage industry.

Breweries pledge cooperation

The companies said they would cooperate with authorities. Kirin Holdings said its subsidiary Kirin Brewery Company was searched on suspicion of violating the Antimonopoly Act. “At present, the impact of this matter on the company’s financial results has not been determined,” Kirin Holdings said. “The company will promptly disclose any material developments as they arise.” Suntory confirmed an on-site inspection relating to domestic alcohol trade practices. “We sincerely apologise for any concern or inconvenience this situation may cause to our customers, business partners, and other stakeholders,” a Suntory spokesperson said. “We will cooperate fully with the JFTC’s investigation.” Suntory’s beer business is not publicly listed.

Share prices of Asahi, Kirin, and Sapporo fell after news of the raids broke on Wednesday.

Shrinking market, widening probe

Japanese alcohol sales reached ¥3.8tn ($24.3bn) in 2024, with beer accounting for 30% of the total and happoshu and third-category beer combined at 11.9%. Alcohol consumption in Japan has declined due to depopulation and changes in drinking habits among younger people, making the alleged coordination over prices all the more sensitive for a market under long-term contraction.

The raids followed a separate JFTC investigation into alleged cartel activity by Japanese ice-cream makers in recent months. That investigation involved six makers including Meiji and Ezaki Glico.