What the Raids on Japan's Four Big Brewers Mean for Beer Drinkers

Japan's antitrust regulator has searched the offices of the country's four biggest brewers over suspicions that they coordinated beer price increases, a practice media reports said may have made drinkers pay more than they should. The Japan Fair Trade Commission (JFTC) carried out the raids on Wednesday, according to the BBC and The Guardian.

Asahi, Sapporo, Kirin and Suntory confirmed the searches to the BBC and said they would cooperate fully. The Guardian reported that the four firms together control more than 90% of the domestic market.

What the regulator is investigating

The companies are suspected of violating Japan's anti-monopoly law. JFTC Secretary General Hiroo Iwanari confirmed an investigation was under way but declined to give details, saying a preliminary review was in progress, according to local media cited by the BBC.

The Japan Times, cited by the BBC, reported that the inquiry centers on price rises in April last year and in October 2022. The Guardian said prices also rose in October 2023. All four companies announced increases and pointed to higher costs for raw materials, energy and transportation.

Japanese media, quoting unnamed sources, reported that sales managers and other executives were suspected of meeting secretly over a long period to coordinate the timing and size of retail price increases. According to The Guardian, those increases ranged from several yen to several dozen yen at a time. The Mainichi Shimbun reported that the commission suspects the brewers sidestepped normal price competition to protect their profits. The companies have not accepted those claims; they have said only that they will cooperate.

Why it matters for shoppers and drinkers

The four firms' products are a common sight in supermarkets and convenience stores across Japan, the BBC noted. The Mainichi said the commission began the case because of the possible effect on prices after wholesalers pass products on to supermarkets, convenience stores, bars and restaurants. Japanese media also reported that the commission regards the case as particularly serious because of its potential effect on consumers.

No finding of wrongdoing has been announced, and the sources do not say whether prices will change as a result. Kirin Holdings said the effect on its financial results had not been determined.

The market is large. The Guardian reported that alcohol sales in Japan reached ¥3.8tn ($24.3bn) in 2024, with beer making up 30% of the total. Happoshu, a low-malt beer, and third-category beer, which has little or no malt, together accounted for 11.9%.

Reaction from the companies and investors

Kirin said its subsidiary, Kirin Brewery, was searched on suspicion of violating the Antimonopoly Act, that it takes the matter very seriously, and that it would promptly disclose any material developments. Suntory confirmed an on-site inspection related to a potential violation of the law on domestic alcohol trade practices and apologized for any concern caused. Asahi said it was subject to the investigation and would cooperate.

Shares in Asahi, Kirin and Sapporo fell after news of the investigation broke, the BBC said. Suntory's beer business is not publicly listed. The Guardian described the case as the first investigation of its kind involving the food and beverage industry.

What could happen next

Japanese media, citing sources, reported that the probe could result in a criminal complaint. The JFTC has not said how long the investigation will take. The BBC said it had contacted the regulator for comment.

The raids come after the commission's action in June against ice cream makers. The BBC named Meiji and Ezaki Glico, the maker of Pocky, among those investigated over alleged cartel activity, while The Guardian said six ice cream makers were raided about three months ago.

Sources: BBC News, The Guardian