Japanese authorities have launched an investigation into the country’s four largest breweries over allegations of colluding to fix prices on beer and other beverages. Officials from the Fair Trade Commission (FTC) conducted raids this week at the offices of Asahi Breweries, Kirin Brewery, Suntory Beer, and Sapporo Breweries, which collectively hold more than 90% of Japan’s beer market.

The FTC suspects the companies of violating Japan’s anti-monopoly law by coordinating price increases for their products. While the commission’s secretary general, Hiroo Iwanari, confirmed that an investigation is underway, he declined to provide further details. The four breweries have stated they will cooperate fully with the authorities.

According to reports, the investigation focuses on the possibility that sales managers and other executives from the breweries met secretly over an extended period to coordinate the timing and amounts of retail price hikes. These increases reportedly ranged from a few yen to several dozen yen per unit. The commission is concerned that such coordination could have led to higher prices for consumers by preventing genuine competition between the companies.

Beer and related beverages, including happoshu—a low-malt alcoholic drink—and third-category beer with little or no malt, have experienced several price increases in recent years. The breweries have attributed the rises, which occurred simultaneously across the four companies, to higher costs for raw materials and distribution. The latest price adjustment took place in April 2025, following similar increases in October 2022 and October 2023.

Despite declines in overall alcohol consumption in Japan due to demographic shifts and changing consumer preferences among younger generations, sales in the beer and malt beverage category remained strong, reaching ¥3.8 trillion ($24.3 billion) in 2024. Beer alone accounted for approximately 30% of total alcoholic beverage sales, with happoshu and third-category beer comprising nearly 12%.

The FTC reportedly considers the case particularly serious because of the potential impact on consumers and the broader market. Media sources suggest the probe could lead to a criminal complaint against the companies involved. Following the raids, shares in all four breweries experienced declines.

This investigation marks the first of its kind targeting Japan’s food and beverage sector. It follows a similar probe three months earlier when the FTC raided six ice-cream manufacturers amid cartel allegations. The ongoing scrutiny underscores heightened regulatory attention to anti-competitive practices within Japan’s consumer goods industries.