India’s competition watchdog has ordered an investigation into claims Pernod Ricard illegally colluded with retailers to boost sales.
The Competition Commission of India (CCI) has examined allegations the spirits giant breached rules in its dealings with retail customers in Delhi.
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The claims, which stem from a complaint made in 2024, allege Pernod “proposed financial assistance” worth Rs2bn ($21m) to retailers “in the form of corporate guarantee” for loans. In return, it is alleged retailers would ensure more than a third of their stock was Pernod brands.
In a filing published by the CCI, the Commission cites an alleged email from 2021 that is said to have been shared among Pernod staff. The email, it is claimed, said the distiller was looking for a “strategic advantage” in the city and would provide €23m ($27.1m) to back retailers bidding for licences.
The CCI said it is “of the view that such conduct is likely to have [an] appreciable adverse effect on competition”.
The Commission added “the non-dealing in the product” of competitors as a result of the alleged arrangements “is likely to result in distortion of demand by way of moving retail demand away from the competing brands to Pernod Ricard, artificially, thereby leading to a situation of driving existing competitors out of the market”.
Just Drinks has contacted Pernod for comment. The Absolut and Jameson owner had not responded at the time of publication.
In a statement attributed to Pernod and published by Reuters, the company said it “unequivocally denies any wrongdoing”.
It added: “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.”
In Pernod’s 2024/2025 financial year, the company generated 13% of its €10.96bn in net sales in India.
In December 2024, the CCI raided offices of Pernod and Anheuser-Busch InBev in the Indian city of Hyderabad, reportedly looking into claims of colluding with retailers on price.
That same month, Pernod denied claims executives broke liquor laws in Delhi through collusion with retailers.
