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The Competition Commission of India (CCI) on Friday ordered an investigation into French liquor giant Pernod Ricard over allegations it entered into exclusive agreements with retailers in New Delhi to promote its brands, including Chivas Regal and Absolut Vodka, at the expense of rivals. The CCI found preliminary merit in claims that Pernod provided financial support worth $24 million in corporate guarantees to help retailers secure loans in 2021, in return for stocking at least 35% Pernod products.
The CCI cited a 2021 internal Pernod email discussing a "strategic advantage" in New Delhi and €23 million ($27 million) in support for retailers bidding for liquor licenses. The regulator said such conduct likely distorted retail demand, restricted consumer choice, and harmed competing brands. The complaint was filed by an individual named Mohit, known for public interest litigations, and has been under review since 2024.
Pernod Ricard denied any misconduct in a statement on Saturday, saying it operates with high standards of compliance and governance. "We unequivocally deny any wrongdoing and view these allegations as without merit," the company said, adding it would cooperate if contacted by the CCI. The investigation will now be conducted by the CCI's investigative unit, a process that may take several months.
This marks another regulatory challenge for Pernod in India, its largest market by volume, where it reported ₹274.45 billion ($3 billion) in sales for 2024-25. The company faces a separate $250 million tax dispute and an ongoing probe into alleged violations of New Delhi's liquor policy. A Pernod India office was raided in 2024 in a different antitrust case.
The CCI's investigation unit will now gather evidence and submit findings, after which the commission may issue a final order. The court will resume hearing on Tuesday.