India Orders Antitrust Probe Into Pernod Ricard Over Alleged Exclusive Retail Deals
India’s competition regulator orders investigation into Pernod Ricard over alleged retailer agreements that may distort liquor market competition.
India’s competition regulator orders investigation into Pernod Ricard over alleged retailer agreements that may distort liquor market competition.
India’s antitrust regulator has ordered a formal investigation into French liquor giant Pernod Ricard over allegations that it entered into exclusive arrangements with retailers to promote its brands at the expense of competitors.
The Competition Commission of India (CCI) issued the directive on Friday after reviewing claims that Pernod Ricard colluded with liquor retailers in New Delhi to strengthen its market dominance through preferential supply arrangements and financial support schemes.
The allegations, first raised in 2024, centre on claims that Pernod Ricard provided about $24 million in corporate guarantees to help retailers secure loans, with the understanding that at least 35 per cent of products stocked in their outlets would comprise Pernod brands, including Chivas Regal and Absolut.
According to the CCI, the alleged arrangement could distort consumer demand and unfairly disadvantage rival brands in India’s highly competitive liquor market.
“The non-dealing in the product of the competitors … is likely to result in distortion of demand by way of moving retail demand away from the competing brands,” the regulator stated in its order.
The commission added that such practices could restrict consumer choice rather than benefit buyers.
The case represents another major regulatory challenge for Pernod Ricard in India, its largest market by sales volume, where it competes aggressively with rivals such as Diageo.
Reuters reported that the company recorded sales of about 274.45 billion rupees ($3 billion) in the 2024/2025 financial year.
Friday’s order also referenced a 2021 internal company email in which executives allegedly discussed gaining a “strategic advantage” across New Delhi retail zones by providing about €23 million in financial support to retailers seeking liquor licences.
The CCI said the contents of the communication raised concerns about attempts to manipulate retail demand in favour of Pernod products.
The investigation unit of the antitrust regulator will now conduct a detailed probe, a process expected to take several months before a final decision is reached.
The latest development adds to mounting legal and regulatory scrutiny facing Pernod Ricard in India.
In 2024, authorities raided one of the company’s Indian offices in a separate antitrust investigation. The liquor giant is also contesting a $250 million federal tax demand and faces another probe linked to alleged violations of New Delhi’s liquor policy, allegations the company has denied.
Reuters had previously reported that an internal Pernod investigation found some senior executives at its India unit violated competition rules by allegedly colluding with retailers, despite the company publicly denying wrongdoing.
