Japan: Asahi Breweries to increase beer prices 3-5% for the first time in 18 years due to higher raw material costs

Japan's biggest beer maker Asahi Breweries Ltd. said it will increase its retail beer prices 3-5 percent effective March 1, joining the list of Japanese brewers planning price hikes because of higher raw material costs, Associated Press reported November 30.

The increase will be the first time Asahi has raised prices in 18 years, excluding revisions that followed liquor tax increases.

The current average store price for a 350-milliliter can of regular beer in Japan is 207 yen (US$1.88)

Asahi, Japan's largest brewery in terms of beer shipments per year, said higher costs for imported malt and packaging materials such as aluminum cans and cardboard have exceeded what it can control through cost reduction and other steps.

Last month, rival Kirin Holdings Co. said its brewing unit will raise its beer prices on Feb. 1.

30 November, 2007