French liquor major Pernod Ricard faces CCI probe, antitrust watchdog examines retailer deals

In a fresh regulatory challenge for French liquor major Pernod Ricard in India, the Competition Commission of India (CCI) has ordered a detailed antitrust investigation into allegations that the company entered into exclusive arrangements with retailers in New Delhi to promote its brands at the expense of rival firms, according to a Reuters report.The Competition Commission of India (CCI) has been examining the allegations since 2024 against Pernod Ricard, whose brands include Chivas Regal and Absolut vodka.The complaint alleged that Pernod provided corporate guarantees worth about $24 million to bankers of retailers in 2021, enabling them to secure loans, while retailers allegedly ensured that around 35 per cent of the stock in their shops comprised Pernod brands.In its order, the CCI said it found merit in the allegations and noted 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 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, Reuters cited.Responding 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.The allegations were made by an individual identified only as Mohit, who has previously filed public interest litigations.India is Pernod Ricard’s largest market by sales volume. The company competes with players such as Diageo and reported sales of 274.45 billion rupees ($3 billion) in 2024-25.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.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 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.