Japan raids beer giants over alleged price cartel

TOKYO - Japanese authorities raided four major beer manufacturers on Oct 7 over suspicions they colluded to hike beverage prices in a violation of anti-monopoly laws, a source familiar with the matter and the firms said.Under investigation are Asahi Breweries, Kirin Brewery, Sapporo Breweries, and Suntory – four giants that reportedly make up around 90% of Japan’s beer market share.In a first, the Japan Fair Trade Commission (JFTC) conducted on-site inspections to probe “the allegations regarding a wholesale beer pricing cartel”, the source, requesting anonymity, told AFP.The price-fixing has likely been unfolding over the past few years, during which representatives from the four companies are believed to have met up periodically to discuss pricing and the timing of the hike, the source said.Recent years have seen these firms raise beer prices on multiple occasions, citing the rising costs of raw material and logistics, Japanese media said.All four companies confirmed they are under investigation, pledging their intention to “fully cooperate”.Suntory, for one, said in a statement that it is “undergoing an on-site inspection by the Fair Trade Commission on suspicion of breaching the anti-monopoly act in relation to its alcohol trading activities.”The raid follows a similar cartel probe by the JFTC in June into the country’s six major ice cream firms.They allegedly coordinated price hikes for years beyond what was justified by a spike in raw ingredient costs. AFP