Asahi raises beer prices for first time in 10 years

Asahi will increase the price of its bottled beers and kegs for the first time in 10 years in 2018, citing a rise in distribution costs and new regulations as the reason for the price hike.

Japanese brewing giant Asahi is set to raise the prices of its beer for the first time in 10 years. The change will come into effect on 1 March 2018 and will be applied to bottled and keg beers.

The price of Asahi’s canned beers remains unchanged.

The move was prompted by “rising distribution costs” and will effect beer sold at “producer prices”.

According to the Japanese site Jiji Press, Asahi is also planning on increasing the prices of its beers sold at supermarkets and convenience stores with prices of its large 633ml beer bottles reportedly expected to rise by 10%.

To explain the move, Asahi has said that new regulations, which came into force in June, now restrict the sale of alcohol at a price below “gross cost of sales”. It also cited increased costs in an “increasingly difficult distribution environment” as another reason for the change.

In a statement, the company said that “shipment volumes of bottled products and keg products in 2016 were approximately 40% and 8% lower, respectively, than the 2008 levels”.

In addition, it claims that the rising distribution costs arise from a shortage of trucks and drivers. Explaining how this affects bottles and kegs rather than cans, Asahi said that returnable containers (bottles and kegs) unlike cans have the added and increasing “cost burden” associated with collecting, washing and storing.

The company added that it will also revise the prices of liqueurs and shochu sold in kegs, which are also experiencing falling profitability.