Key Facts
• Late May 2025: Kirin’s ‘Nama-cha’ (525ml) sold for 65 yen at a Tokyo drugstore.
• Suntory’s ‘Pepsi Nama’ (600ml) priced at 88 yen in a supermarket.
• Manufacturer suggested retail price (MSRP) for both products is 180 yen (tax excluded).
• Beverage companies have raised prices annually since 2022 due to rising raw material costs.
• Suntory increased prices for 188 items by 6–32% in October 2024.
• Another price hike for 234 items (6–25%) is planned for October 2025.
• Retailers use rebates to lower shelf prices, fearing product removal (‘shelf drop’).
• Kirin raised ‘Nama-cha’ MSRP by 20 yen in October 2024, but average retail price rose only 3 yen by May 2025.
• Industry-wide efforts are needed to stabilize pricing and improve product value perception.
Summary
Despite annual price hikes by beverage manufacturers like Kirin and Suntory due to rising raw material costs, products such as ‘Nama-cha’ and ‘Pepsi Nama’ are sold at significantly lower prices in retail stores. This is driven by intense competition among manufacturers to avoid ‘shelf drop,’ where products lose visibility and sales. Retailers leverage rebates and strategic pricing to attract customers, often undercutting MSRP. For instance, Kirin’s ‘Nama-cha’ saw its MSRP rise to 180 yen in 2024, but its average retail price only increased by 3 yen over a year. Industry leaders emphasize the need for collective action to address pricing challenges and enhance product value perception, as the current model of low-margin, high-volume sales undermines long-term sustainability.
