Pernod Ricard Faces India Antitrust Probe over Retail Deals

Legal Risks in India's Market Transition: Pernod Ricard Accused of Market Manipulation via Exclusive Agreements

The Indian subsidiary of the French spirits group Pernod Ricard is facing a formal antitrust investigation by the Competition Commission of India (CCI) for allegedly adopting exclusive retail agreements in the New Delhi region. The agency alleges that Pernod Ricard used improper means to ensure priority promotion for its brands, suppressing the market space for competitors. The investigation stems from the 2021 transition period when the region's liquor distribution system moved from government control to privatization; although it lasted only two years, the actions during that time have raised legal concerns.

Internal Emails Reveal Strategy: 35% Inventory Commitment for Guarantees

According to the complaint, Pernod Ricard allegedly provided €23 million in guarantees in 2021 to help independent retailers obtain loans. In exchange, retailers were required to commit that at least 35% of their inventory would consist of Pernod Ricard brands. Regulators believe this move limited consumer choice and distorted market competition by manipulating retail demand. The investigation also uncovered a 2021 internal email discussing how to gain a "strategic advantage" in New Delhi and facilitating retailers' bids for liquor licenses.

Antitrust Agency Conducts Searches; $250 Million Customs Duty Lawsuit Pending

The case was triggered by a 2022 complaint from Indian domestic distiller Radico Khaitan, alleging that Pernod Ricard colluded privately with retailers to damage competitors' interests. In December 2024, the Indian national antitrust agency searched the group's office in Hyderabad, Telangana. As the case remains open, New Delhi authorities have refused to renew Pernod Ricard's trade license. While the affected business accounts for less than 5% of its total revenue in India, the group still faces an import duty lawsuit involving $250 million, adding uncertainty to its development.

In response to the allegations, Pernod Ricard issued a statement denying any wrongdoing, emphasizing that the company adheres to high standards of compliance and governance, and pledged full cooperation with the investigation. Although internal investigations at the group once suggested that some high-level Indian executives might have been involved in illegal collusion with retailers, the company has denied any systematic corporate-level violations in public and in court. Pernod Ricard reiterated that all business activities strictly comply with the law and considers the allegations baseless. The group is currently taking active legal action to defend its commercial reputation and long-term interests in India.

📅 Release Date: 2026-05-11

🔗 Source: https://www.thedrinksbusiness.com/2026/05/pernod-ricard-faces-indian-anti-trust-investigation/