Japan beer cartel probe: section chiefs met to set prices by product size, sources say
In short
Sales section chiefs at Asahi Breweries, Kirin Brewery, Suntory and Sapporo Breweries were the main attendees at meetings where shipping prices were discussed, people familiar with the matter said on October 8. Prices appear to have been set by product size, and Tokyo Shimbun and Nishi-Nippon Shimbun reported that participants shared a price list. The Japan Fair Trade Commission searched the four companies' head offices on October 7 under its criminal investigation powers.
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Section-chief-level employees, mainly from sales, were the main participants in meetings where Japan's four largest brewers discussed shipping prices, people familiar with the matter said on October 8. Asahi Breweries, Kirin Brewery, Suntory and Sapporo Breweries are under compulsory investigation by the Japan Fair Trade Commission on suspicion of a price cartel in violation of the Antimonopoly Act. Prices appear to have been coordinated by product size, according to the same sources. [ 1 , 2 , 3 ]
Tokyo Shimbun and Nishi-Nippon Shimbun reported that the companies' sales staff appear to have held their discussions on shipping prices while sharing a list of prices. Sankei Shimbun's report did not mention the price list but said prices are believed to have been set by product size. [ 1 , 2 , 3 ]
According to people familiar with the matter, the four companies are suspected of coordinating shipping prices of beer-type beverages, including happoshu and so-called third beer, for at least several years. Sales section chiefs reportedly gathered separately after regular meetings of the Tokyo-based industry group Biru Shuzo Kumiai (beer brewers' association), holding what were described as 'back meetings' where they set prices. At some companies, the content of these discussions was reported to management. [ 1 , 3 ]
On October 7 the commission searched the head offices and other sites of the four companies, using its criminal investigation powers, which allow it to seize evidence with court warrants. Sankei Shimbun reported that the commission is investigating with a criminal referral to prosecutors in view and that it also entered the industry association as a related party. [ 1 , 3 ]
The commission is analysing the materials it seized to establish how the timing of price revisions and the size of price increases were decided, the outlets reported. None of the reports included a response from the companies. [ 1 , 2 , 3 ]
Why it matters
The four companies are suspected of coordinating shipping prices of beer-type drinks, including happoshu and so-called third beer, for at least several years. Sankei Shimbun reported that the Fair Trade Commission is investigating with a possible criminal referral to prosecutors in view, which would raise the stakes for the brewers involved.
Key facts
- The Japan Fair Trade Commission is investigating Asahi Breweries, Kirin Brewery, Suntory and Sapporo Breweries over a suspected price cartel in breach of the Antimonopoly Act. [ 1 , 2 , 3 ]
- The meetings where shipping prices were discussed were attended mainly by section-chief-level employees, according to people familiar with the matter. [ 1 , 2 , 3 ]
- Prices appear to have been coordinated or set by product size. [ 1 , 2 , 3 ]
- Participants appear to have shared a price list during the discussions, Tokyo Shimbun and Nishi-Nippon Shimbun reported. [ 1 , 2 ]
- The four companies are suspected of coordinating shipping prices of beer-type beverages, including happoshu and third beer, for at least several years. [ 1 , 3 ]
- Sales section chiefs reportedly gathered separately in 'back meetings' after regular meetings of the Tokyo-based industry group Biru Shuzo Kumiai (beer brewers' association). [ 1 , 3 ]
- On October 7 the commission searched the four companies' head offices and other sites under its criminal investigation powers, with court warrants. [ 1 , 3 ]
- The commission is analysing seized materials to establish how the timing and size of price increases were decided. [ 1 , 2 , 3 ]
Confirmed by several sources
- The Japan Fair Trade Commission has conducted a compulsory investigation of the four major brewers over a suspected price cartel. [ 1 , 2 , 3 ]
- Mainly section-chief-level employees took part in the price meetings, according to people familiar with the matter. [ 1 , 2 , 3 ]
- Prices appear to have been set or adjusted by product size. [ 1 , 2 , 3 ]
- Participants appear to have shared a price list while discussing shipping prices. [ 1 , 2 ]
- Sales section chiefs met separately after regular meetings of the brewers' industry association to set prices. [ 1 , 3 ]
- Some companies reported the content of the discussions to their management. [ 1 , 3 ]
- The commission searched the head offices of Asahi Breweries, Kirin Brewery, Suntory and Sapporo Breweries on October 7 under its criminal investigation powers. [ 1 , 3 ]
Still unclear
- Whether the commission will file a criminal complaint with prosecutors. Only Sankei Shimbun reports that the commission is investigating with a criminal referral in view; no decision is reported.
- Whether the commission also entered the brewers' industry association. Only Sankei Shimbun reports that investigators entered the association as a related party.
- Which companies reported the discussions to their management. The documents say only that some companies did so, without naming them.
- How long the alleged coordination lasted. The documents say 'at least several years' and give no start date.
- How the four companies respond to the allegations. None of the documents includes a response from the companies.
What local media are saying
Timeline, local time
- Tokyo Shimbun reports that section chiefs shared a price list and coordinated prices by product size. [ 1 ]
- Nishi-Nippon Shimbun carries the same report on the section-chief meetings and price list. [ 2 ]
- Sankei Shimbun reports the section chiefs' role and adds that the commission is weighing a criminal referral and entered the industry association. [ 3 ]