Asahi to hike price of beer, the first time in a decade

Is this a preemptive step to avoid being fined? Asahi Breweries will raise the wholesale price of beer delivered mainly to bars and restaurants by about ten percent in March 2018, the company’s first price hike since 2008, Japan’s media reported on 4 October 2017.

The increase will apply to bottles and kegs of the flagship Asahi Super Dry brand and other labels, including Asahi’s near-beer products. Reportedly, the price for beer in cans will remain unchanged.

Asahi decided to raise the price of beer because of higher distribution costs caused by a labour shortage, company officials told media.

However, the real reason for the price hike may have been changes to the excise law that took effect on 1 June 2017, which entail curtailing sales of beer and other alcoholic beverages at prices below cost.

According to commentators, Asahi has been facing an increasing risk of being penalised for excessively cheap prices under the revised law unless it raises its wholesale prices.

It cannot be ruled out that the move by the leading company in the domestic beer and quasi-beer market will prompt rivals to follow suit – whether they too risk penalisation or not.

Reports say, in 2016, sales of bottled beer decreased by about 40 percent over the figure in 2008. On-premise sales of keg beer declined by eight percent over the same period.