CCI probes Pernod Ricard: French liquor group Pernod Ricard has reportedly landed in hot soup over alleged exclusivity with New Delhi retailers.

CCI orders antitrust probe into Pernod's dealings with retailers

Antitrust watchdog Competition Commission of India (CCI) has ordered an investigation into Pernod Ricard over alleged exclusive deals with retailers to promote its brands at the expense of rivals, Reuters reported, citing a regulatory order.

The CCI has been reviewing allegations since 2024 that Pernod, whose brands include Chivas Regal and Absolut vodka, colluded with retailers in New Delhi to boost its market share.

What is the complaint?

The complaint alleges that Pernod provided USD 24 million in corporate guarantees to its bankers in 2021 to help city retailers secure loans, with retailers in turn ensuring 35 per cent of ⁠the stock in their shops comprised Pernod brands.

The CCI said it found merit in the allegations, 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 allegations were made by an individual identified only by the first name Mohit, who has a record of taking up public interest litigations.

Case adds to challenges for Pernod in India

The case adds to challenges for Pernod in India, its largest market by sales volume. The company competes with Diageo among others in the market and ‌reported sales ⁠of 274.45 billion rupees (USD 3 billion) in 2024-25.
A Pernod India office was raided in 2024 in a separate antitrust case. The company is also contesting a USD 250 million federal tax demand and faces another probe into alleged violations of New Delhi's liquor policy, which it denies.

Internal mail

The CCI's investigation unit will now examine the case in detail, a ⁠process that can take months before a final order.

Friday's order referred to a 2021 internal Pernod email in which executives discussed gaining a "strategic advantage" across New Delhi zones and providing 23 million euros (USD 27 million) in support to retailers bidding ⁠for licences.

The CCI said this amounted to distorting retail demand to benefit Pernod.
"Such an action is likely to result in restriction of choice to end consumers rather than benefit them in any manner," CCI ⁠said in its order.

An internal probe by Pernod later found senior executives at its India unit had violated the law by colluding with retailers in New Delhi, even as the company has denied wrongdoing in court and publicly, Reuters reported in 2024.