Japan's competition regulator raids beer makers over price rises they all blamed on costs

The leadership question starts with the brewers' own explanation. Each announced its increases citing the rising cost of raw materials, along with energy and transportation ^[5]. The allegation is that the companies worked together to raise prices ^[1]. A cost explanation can account for the rise without showing that each company set its price alone. Kirin said its brewing subsidiary, Kirin Brewery Company, was searched "on suspicion of a violation of the Antimonopoly Act" ^[7].

The commission had not commented when the BBC reported the searches ^[13], so it has not said what prompted them or how much weight it gives a shared rationale. I think the exposure comes from moving in step with competitors, and the cost language is the part of that move outsiders can see. The record shows the same stated reasons from all four companies ^[5].

Suntory's wording covers more than beer. A spokesperson confirmed "an on-site inspection" had taken place "in connection with a potential violation of Japan's Antimonopoly Act relating to domestic alcohol trade practices" ^[10]. Asahi said it was "subject to investigation by the Japan Fair Trade Commission regarding a suspected violation of the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade" ^[12].

The brewers' case, as they made it at the time, was that their input bills had gone up ^[5]. That may still be how this ends, because so far the commission has only carried out searches and made no finding. Asahi, Kirin and Suntory each said they would cooperate fully ^[2], and Kirin said it takes the matter "very seriously" ^[8]. Suntory also apologised: "We sincerely apologise for any concern or inconvenience this situation may cause to our customers, business partners, and other stakeholders." ^[11]

A company raising prices this quarter has two ways to explain the increase, and the choice is a trade-off. The industry-wide account is the one competitors will also give, as all four brewers did ^[5]. A company-specific account of its own costs, and of when and how it decided, takes more work to put together. In my view it is also easier to tell apart from a coordinated line.