India’s antitrust regulator has ordered a formal investigation into French liquor company Pernod Ricard over allegations that it entered into exclusive arrangements with retailers in New Delhi to promote its brands at the expense of competitors, according to Reuters.
The Competition Commission of India (CCI) has been reviewing the matter since 2024 following a complaint alleging that Pernod Ricard, whose portfolio includes Chivas Regal whisky and Absolut vodka, worked with city retailers to strengthen its position in the market. Per Reuters, the complaint alleges that the company provided corporate guarantees worth $24 million to banks in 2021, helping retailers secure loans. In return, retailers allegedly agreed to ensure that 35% of their store inventory consisted of Pernod brands.
After reviewing the allegations, the CCI said there was sufficient basis to move forward with an investigation. In its order, the regulator stated that “the non-dealing in the product of the competitors … is likely to result in distortion of demand by way of moving retail demand away from the competing brands.”
The complaint was filed by an individual identified only as Mohit, who has previously pursued public interest litigation matters.
Pernod Ricard denied any misconduct. In a statement issued on Saturday, the company told Reuters it “unequivocally denies any wrongdoing” and said it would cooperate with the CCI if contacted by authorities.
“We operate to the highest standards of compliance and governance, and we are confident that our business practices fully adhere to the laws and regulations of the country. We view any allegations to the contrary as without merit,” the company said.
The latest case adds to a series of regulatory and legal challenges facing Pernod in India, its largest market by sales volume. The company competes with Diageo and reported sales of 274.45 billion rupees ($3 billion) in the 2024-25 financial year, according to Reuters.
Pernod’s India operations have already faced scrutiny in recent years. In 2024, company offices in India were raided in connection with a separate antitrust investigation. The company is also challenging a $250 million federal tax demand and is facing another probe linked to alleged violations of New Delhi’s liquor policy, allegations it has denied.
Friday’s order also cited a 2021 internal company email in which executives discussed gaining a “strategic advantage” across different New Delhi zones and providing 23 million euros ($27 million) in financial support to retailers applying for licences, per Reuters.
The CCI said the alleged conduct appeared to distort competition and reduce consumer choice. “Such an action is likely to result in restriction of choice to end consumers rather than benefit them in any manner,” the regulator said in its order.
Reuters reported in 2024 that an internal investigation by Pernod later found senior executives at its India unit had violated the law by colluding with retailers in New Delhi, even as the company has continued to deny wrongdoing in court and in public statements.
Source: Reuters.