Japan Fair Trade Commission Investigates Four Major Brewers Over Cartel Allegations

時事通信··JP·Read original
3▲0 ▼2Impact / 5
Summary · why it matters

The Japan Fair Trade Commission has opened a probe into suspected cartel activity among four major brewers. The four companies have long battled fiercely over product development and sales, but suspicions have surfaced that they quietly joined hands and moved in lockstep on pricing. An industry that had hoped to revitalize the market on the back of an October beer tax cut now finds its momentum blunted at the starting line. The four brewers have a long history of intense competition for market share. After World War II, Kirin Brewery at one point held just over 60 percent of the market, but the landscape shifted in 1987 when Asahi Breweries launched Super Dry, and in 1998 Asahi seized the top spot in annual beer shipments. From the 1990s onward, competition intensified over low-malt and so-called third-category beers, with Suntory's Hops, Sapporo Breweries' Draft One, and Kirin's Nodogoshi Nama arriving in quick succession. As Japan's domestic beer market continues to shrink amid a declining population and as raw material and logistics costs soar, the companies may have sought to secure profits by avoiding price competition and quietly colluding with rivals. The industry saw the beer tax cut on the first of this month as a prime opportunity to boost sales, and Asahi President Kazuo Matsuyama had said he was eager to energize the market and to keep promoting beer's appeal. The allegations could damage the industry's credibility and brands, and management is likely to face questions over its responsibility.

Impact on assets 2

Consumer Staples▼
Asahi Group Holdings Ltd
2502
▼ NegativeRegulationrelevance

Asahi is among the four brewers being investigated by the JFTC over alleged cartel pricing, blunting its post-tax-cut market push.

Suntory Beverage & Food Ltd.
2587
▼ NegativeRegulationrelevance

Suntory is one of the four brewers under Japan Fair Trade Commission probe for suspected cartel pricing, threatening credibility and brand.

Off-coverage companies 2

Kirin Brewery Company, Limitedi
Private▼ NegativeRegulationrelevance

Kirin is one of the four major brewers targeted by the JFTC cartel probe into lockstep pricing.

Sapporo Breweries Ltd.i
Private▼ NegativeRegulationrelevance

Sapporo is among the four brewers under JFTC investigation for suspected collusion on pricing.