India Initiates Antitrust Investigation Into Pernod Ricard Regarding Suspected Exclusive Retail Agreements
India’s competition regulator has initiated an investigation into Pernod Ricard regarding alleged agreements with retailers that could potentially disrupt competition in the liquor market.
India’s antitrust regulator has initiated a formal investigation into the French liquor giant. Pernod Ricard faces allegations regarding its exclusive agreements with retailers aimed at promoting its brands, potentially disadvantaging competitors.
On Friday, the Competition Commission of India (CCI) released a directive following an examination of allegations that Pernod Ricard engaged in collusion with liquor retailers in New Delhi to enhance its market dominance via preferential supply arrangements and financial support schemes.
The allegations, initially brought to light in 2024, focus on claims that Pernod Ricard extended approximately $24 million in corporate guarantees to assist retailers in obtaining loans, with the expectation that at least 35 percent of the products available in their stores would consist of Pernod brands, such as Chivas Regal and Absolut.
The CCI has indicated that the purported arrangement may disrupt consumer demand and unfairly put rival brands at a disadvantage in India’s intensely competitive liquor market.
“The non-dealing in the product of the competitors … is likely to lead to a distortion of demand by shifting retail demand away from the competing brands,” the regulator stated in its order.
The commission noted that such practices might limit consumer choice instead of providing advantages to buyers.
This case signifies yet another significant regulatory hurdle for Pernod Ricard in India, its largest market by sales volume, where it faces fierce competition from rivals like Diageo.
According to Reuters, the company achieved sales of approximately 274.45 billion rupees ($3 billion) in the financial year 2024/2025.
Friday’s order also mentioned a 2021 internal company email where executives reportedly talked about obtaining a “strategic advantage” in New Delhi retail areas by offering approximately €23 million in financial assistance to retailers pursuing liquor licenses.
The CCI expressed that the details of the communication highlighted worries regarding efforts to influence retail demand in favor of Pernod products.
The antitrust regulator’s investigation unit will now carry out a thorough examination, a process anticipated to span several months before arriving at a final decision.
The recent development contributes to the increasing legal and regulatory scrutiny confronting Pernod Ricard in India.
In 2024, authorities conducted a raid on one of the company’s offices in India as part of a distinct antitrust investigation. The liquor giant is currently challenging a $250 million federal tax demand and is under investigation for alleged violations of New Delhi’s liquor policy, claims that the company has refuted.
Reuters previously reported that an internal investigation at Pernod revealed that certain senior executives within its India unit may have breached competition rules by allegedly colluding with retailers, even though the company has publicly denied any wrongdoing.
