News On Japan

Japan Faces 200 Yen Vending Machine Drinks

NAGOYA - The wave of price increases continued into October, with more than 3,000 items, including beverages and food, set to rise in price, leaving supermarkets and retailers grappling with how to respond.

According to Teikoku Databank, food manufacturers reported 3,024 items subject to price hikes in October, surpassing 3,000 for the first time since April. In Nagoya, the Wodai Plus supermarket noted that about 300 products, including beverages and packaged rice, would be affected, though the store has been delaying price adjustments by stockpiling goods. Floor manager Manabu Makino explained that the store has been holding extra inventory and relying on wholesalers to maintain lower prices for as long as possible, with the aim of keeping pre-hike prices for at least another month.

Customers, however, are increasingly feeling the pinch. An 80-year-old shopper said, "It’s really difficult. Food is something we need every day, and we can’t just give it up." A woman in her 30s added, "The coffee price increase hurts. I drink it every morning."

Alcohol and beverages account for more than 70 percent of the October hikes. Coca-Cola’s 500-milliliter bottle, for example, is rising from 180 yen to 200 yen before tax.

The impact extends beyond supermarkets to vending machines. Sun Company, based in Toyohashi, Aichi Prefecture, which operates machines mainly in the Higashi-Mikawa region, says it is struggling to keep up. President Tatsuya Nagata noted, "Prices are rising so sharply that we can hardly keep pace. Some drinks are approaching 200 yen." The company has responded by removing products that would exceed 200 yen and replacing them with lower-priced alternatives, but Nagata warned that if trends continue, 20 to 30 percent of roadside vending machines across Japan could disappear as they lose competitiveness against supermarkets and drugstores.

From October, Sun Company’s machines will gradually increase prices on products such as Wilkinson soda water and Welch’s grape juice by 10 yen. Nagata cautioned that the viability of vending machines as a sales channel is now in question: "Raw material costs and exchange rates may be unavoidable, but if this continues, vending machines may not survive."

Households are also searching for ways to cope. Home economics advisor Kikuno Yano outlined three strategies to protect family budgets. First, avoid buying items simply because they appear cheap, as unused food often ends up wasted. Second, even at convenience stores, choose private-brand products, which are increasingly available at competitive prices. Finally, maximize savings through layered loyalty programs. At stores like Matsumoto Kiyoshi, shoppers can simultaneously earn points across multiple systems, from store-specific rewards to credit card miles, effectively quadrupling benefits.

As prices climb, both retailers and consumers are being forced to adapt, while the era of 200 yen vending machine drinks is quickly becoming a reality.

Source: Nagoya TV News

News On Japan
POPULAR NEWS

Large Typhoon No. 25 was moving northwest over waters south of Japan at 3 p.m. on September 19 and is forecast to strengthen as it approaches Kanto and the Izu Islands from September 20 through September 21, bringing the risk of torrential rain, violent winds and further damage in areas still recovering from last year's typhoon.

A black bear has been spotted near one of the most popular hiking trails on Mount Takao in western Tokyo, prompting authorities to urge visitors to take precautions ahead of the five-day Silver Week holiday and the approaching autumn foliage season.

Starbucks is considering selling a majority stake in its Japanese business, potentially valued at as much as $3 billion, or about 470 billion yen, as the U.S. coffee chain seeks to concentrate management resources on its struggling North American operations.

Japan's Halloween Jumbo Lottery went on sale nationwide on September 16, offering a combined top payout of 400 million yen for the first prize and its adjacent-number prizes.

A new top-tier "Supreme Class" offering fully private compartments above the level of Green Car service will debut on the Tokaido and Sanyo Shinkansen on October 1, with passengers able to experience the new seating at a demonstration booth at Shin-Osaka Station.

MEDIA CHANNELS
         

MORE Business NEWS

The yen strengthened by more than 1 yen against the dollar in a short period late on September 18 after the Bank of Japan conducted a rate check, a step commonly taken in preparation for possible intervention in the foreign exchange market.

Tokyo stocks rose sharply on September 18, with the Nikkei 225 climbing to around 65,350 in afternoon trading after the Bank of Japan raised interest rates to 1.25%, as the yen weakened and investors bought artificial intelligence and semiconductor-related shares.

The Bank of Japan raised its policy interest rate from 1.0% to 1.25% on September 18, lifting borrowing costs to their highest level in 31 years as policymakers moved to contain growing inflation risks, but the yen weakened sharply after the decision as markets focused on two dissenting votes and uncertainty over the pace of further increases.

A market spread is generally the difference between two market prices. Most commonly, traders use the term to describe the bid-ask spread: the difference between the highest price a buyer is currently prepared to pay and the lowest price a seller is prepared to accept.

Tokyo stocks rose on September 17, with the Nikkei 225 closing at 64,136, up 213.25 points, as investors bought selected technology, pharmaceutical, insurance and consumer-related shares after the Federal Reserve’s rate hike, though gains were capped by a stronger dollar, renewed yen weakness and caution before the Bank of Japan’s policy decision.

Hakone, one of the Kanto region's most popular tourist destinations, has been left with just two operating gas stations after a series of closures, prompting the town to provide more than 10 million yen in subsidies to help reopen a shuttered facility.

Japan's Halloween Jumbo Lottery went on sale nationwide on September 16, offering a combined top payout of 400 million yen for the first prize and its adjacent-number prizes.

Japan's National Tax Agency is preparing a major overhaul of the way unlisted shares are valued for inheritance tax, a reform that could significantly affect business succession at profitable, asset-rich companies and would mark the first fundamental revision of the rules since they were introduced in 1964.