Competition Commission of India Launches Antitrust Investigation into Pernod Ricard's Business Practices

India's Antitrust Watchdog Orders Investigation into Pernod Ricard

The Competition Commission of India (CCI) has ordered an investigation into French liquor group Pernod Ricard over allegations of exclusive deals with retailers to promote its brands at the expense of rivals. The regulatory order, issued on Friday, marks the latest challenge for the company in its largest market by sales volume, India.

The CCI has been reviewing allegations since 2024 that Pernod Ricard, whose brands include Chivas Regal and Absolut vodka, colluded with retailers in New Delhi to boost its market share. The complaint alleges that the company provided $24 million in corporate guarantees to its bankers in 2021 to help city retailers secure loans. In return, retailers ensured that 35% of the stock in their shops comprised Pernod brands.

According to the CCI order, the alleged non-dealing in products of competitors is likely to result in distortion of demand by moving retail demand away from competing brands. The investigation unit will now examine the case in detail, a process that can take months before a final order.

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Pernod Ricard competes with Diageo among others in the Indian market, where it reported sales of 274.45 billion rupees ($3 billion) in 2024-25. The company is also contesting a $250 million federal tax demand and faces another probe into alleged violations of New Delhi's liquor policy, which it denies.

The allegations against Pernod Ricard were made by an individual identified only by the first name Mohit, who has a record of taking up public interest litigations. The case adds to the company's challenges in India, following a raid on its India office in 2024 in a separate antitrust case.

Comparison of Sales Figures

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The CCI'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 ($27 million) in support to retailers bidding for licences. The CCI said this amounted to distorting retail demand to benefit Pernod.

An internal probe by Pernod Ricard 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.