Pernod Ricard Faces Indian Anti-trust Investigation

Pernod Ricard’s Indian subsidiary is facing a formal anti-trust investigation over allegations it secured exclusive retail arrangements in New Delhi to favour its brands. The probe adds to a series of regulatory challenges facing the French spirits group in India. Pernod Ricard’s Indian subsidiary faces a formal anti-trust investigation over allegedly engineering exclusive deals with retailers in the Delhi region to promote its brands at the expense of rivals. The Competition Commission of India has ordered a probe into practices when the Delhi region switched from state-controlled distribution of alcohol to allowing private retailers into the sector in 2021. It reverted to the previous system two years later.

Allegations linked to retailer agreements

Since 2024 the commission has been investigating claims that Pernod Ricard colluded with retailers in New Delhi to boost its market share. The local authorities have refused to renew Pernod Ricard’s licence to trade in the New Delhi region until the case is resolved, a decision the French group has previously said accounts for less than 5% of its business in India. The complaint alleges that in 2021, Pernod provided guarantees totalling €23 million to its bankers to help secure loans to independent stockists, on the proviso that, in return, they would ensure that at least 35% of the stock they offered was Pernod Ricard brands.

Earlier raids and complaints

In December 2024 the national anti-trust body raided the Hyderabad office of Pernod Ricard as part of its investigation. The raid in Telangana state was prompted by a complaint filed in 2022 by rival Indian spirits manufacturer Radico Khaitan, which accused Pernod Ricard of colluding with retailers to its detriment.

Commission raises competition concerns

The commission now says it wants the allegations to be examined formally, noting in its order that "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 order for the anti-trust probe referred to a 2021 internal email discussing gaining a "strategic advantage" across New Delhi zones and smoothing the way for retailers bidding for alcohol licences. "Such an action is likely to result in restriction of choice to end consumers rather than benefit them in any manner," the commission said.

Pernod Ricard rejects allegations

In a statement to Reuters Pernod Ricard has rejected the charges, saying it "unequivocally denies any wrongdoing" and that it will cooperate with the 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 French group said.

Wider legal challenges continue

When the claims were first made, Pernod Ricard launched an internal probe which found that senior executives in India had violated the law by colluding with retailers in New Delhi, but the company has denied corporate wrongdoing both publicly and in court. Pernod Ricard is also contesting a long-running case over a US$250 million federal tax demand concerning the value of imported spirits.