TOKYO: Shares of Japanese beer makers fell after the nation’s competition authority started investigating them over suspected price fixing.
The Japan Fair Trade Commission yesterday began inspecting Asahi Breweries, Kirin Brewery, Sapporo Breweries and Suntory Spirits, according to a person familiar with the matter.
The regulator is suspecting the brewers have been coordinating the timing and level of price increases of their products, said the person, who asked not to be identified because the proceedings are private.
Sapporo shares erased earlier gains to decline as much as 3.7% in Tokyo, with Kirin Holdings Co and Asahi Group Holdings Ltd dropping as much as 3% and 2.5%, respectively.
The four brewers said they’re fully cooperating with the regulator.
Together, they dominate the vast majority of the Japanese beer market.
The probe comes as brewers shift their focus to higher-margin products following a liquor tax reform that took effect this month. The final stage of the reform lowered levies on beer, raising expectations for stronger demand.
Producers have also been facing challenges including Japan’s shrinking population, which weighs on long-term alcohol consumption. — Bloomberg
