India's antitrust regulator, the Competition Commission of India (CCI), has directed a detailed investigation into French spirits giant Pernod Ricard following allegations that the company struck exclusive arrangements with retailers in New Delhi to promote its own brands at the expense of competitors, according to a Reuters report.
Background of the Case
The CCI has been examining the allegations since 2024 against Pernod Ricard, the maker of popular brands like Chivas Regal whisky and Absolut vodka. The complaint, filed by an individual identified only as Mohit who has previously lodged public interest litigations, claimed that Pernod provided corporate guarantees worth approximately $24 million to bankers of retailers in 2021, enabling them to secure loans. In return, retailers allegedly ensured that around 35 percent of the stock in their shops comprised Pernod brands.
CCI's Observations
In its order, the CCI stated that it found merit in the allegations and noted that the non-dealing in competitors' products is likely to distort demand by shifting retail demand away from competing brands. The regulator observed that such practices could potentially restrict competition and reduce consumer choice in the market. "Such an action is likely to result in restriction of choice to end consumers rather than benefit them in any manner," the CCI said in its order, as cited by Reuters.
Pernod Ricard's Response
Reacting to the development, Pernod Ricard said it "unequivocally denies any wrongdoing" and would cooperate with the regulator 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 in a statement to Reuters.
Market Position and Other Legal Challenges
India is Pernod Ricard's largest market by sales volume. The company competes with rivals such as Diageo and reported sales of 274.45 billion rupees ($3 billion) in the 2024-25 fiscal year. The report noted that Pernod's India office was raided in 2024 in another antitrust case. The company is also contesting a $250 million federal tax demand and separately faces a probe linked to alleged violations of Delhi's liquor policy, allegations it has denied.
Internal Email Referenced
The CCI's order also referred to a 2021 internal email in which Pernod executives allegedly discussed gaining a "strategic advantage" across New Delhi zones and extending 23 million euros ($27 million) in support to retailers bidding for liquor licences. Reuters had earlier reported in 2024 that an internal probe by Pernod found senior executives at its India unit had violated the law by allegedly colluding with retailers in New Delhi, even as the company publicly denied wrongdoing.
Next Steps
The CCI's investigation arm will now conduct a detailed probe, a process that could take several months before a final order is issued. The regulator's decision marks a fresh regulatory challenge for Pernod Ricard in India, as the company faces multiple legal battles in the country.
