CCI Orders Probe into Pernod Ricard Over Alleged Retailer Exclusivity Deals in Delhi

The Competition Commission of India (CCI) has ordered a detailed antitrust investigation into Pernod Ricard India over allegations that the company entered into exclusive arrangements with retailers in New Delhi, providing financial support in exchange for preferential shelf space for its brands, including Chivas Regal and Absolut vodka. The CCI found the allegations credible, stating such practices could distort demand and restrict consumer choice.

According to the CCI order, Pernod Ricard allegedly provided corporate guarantees worth $24 million to retailers' bankers in 2021, helping them secure loans, while retailers committed to stocking around 35% Pernod products. An internal email from 2021 also referenced a plan to extend 23 million euros ($27 million) in support to retailers bidding for liquor licences, with executives discussing gaining a 'strategic advantage' across Delhi zones.

Pernod Ricard has denied any misconduct, stating it 'unequivocally denies any wrongdoing' and operates under strict compliance standards. The company said it would cooperate with authorities if contacted. The complaint was filed by an individual named Mohit, a known public interest litigant.

The probe adds to a series of regulatory challenges for Pernod Ricard in India, its largest market by volume, where it reported sales of 274.45 billion rupees ($3 billion) in 2024-25. The company's India office was raided in 2024 in a separate antitrust case, and it is contesting a $250 million tax demand and a probe into alleged violations of Delhi's liquor policy.

The CCI's investigation unit will now conduct a detailed inquiry, a process expected to take several months before a final ruling is issued.