Investigation Launched into Pernod Ricard’s Business Practices in India
The Competition Commission of India (CCI) has initiated an investigation against Pernod Ricard, a French liquor company known for brands like Chivas Regal and Absolut vodka. The inquiry stems from allegations that Pernod engaged in exclusive agreements with retailers in New Delhi, potentially sidelining its competitors.
The investigation comes after claims surfaced in 2024, suggesting that Pernod had collaborated with local retailers to enhance its market presence. Reports indicate that the company provided significant financial support—around $24 million—in 2021 to help retailers obtain loans, with a stipulation that Pernod’s products would make up 35% of their inventory.
The CCI found the claims compelling, noting concerns that such practices could distort consumer demand by steering customers away from competing brands. Pernod has yet to respond to these allegations.
The complaint was filed by an individual named Mohit, known for pursuing public interest lawsuits. This investigation adds to the challenges faced by Pernod in India, which is its largest market based on sales volume. The company reported sales of approximately 274.45 billion rupees (about $3 billion) for the fiscal year 2024-25.
The scrutiny of Pernod Ricard is not new; the company’s Indian office was raided in 2024 in a different antitrust matter. Additionally, Pernod is contesting a significant federal tax demand and is under investigation for possible breaches of New Delhi’s liquor regulations.
The CCI will now conduct a thorough examination of the case, a process that may take several months before reaching a conclusion. Evidence cited in the CCI’s order includes a 2021 email from Pernod’s internal communications, which appeared to discuss strategies to enhance their competitive edge in New Delhi and included financial support to retailers seeking licensing.
The CCI stated that such actions might limit consumer choice rather than enhance it. An internal review by Pernod previously indicated that senior officials had acted unlawfully by coordinating with retailers, despite the company’s public denials of any wrongdoing.
As the investigation unfolds, the CCI’s findings could significantly impact Pernod’s operations in one of its most important markets.
