In a fresh regulatory challenge to French liquor major Pernod Ricard in India, the Competition Commission of India (CCI) has ordered a detailed antitrust probe into allegations that the company entered into exclusive arrangements with New Delhi-based retailers to promote its brands at the expense of rivals, according to a Reuters report.The Competition Commission of India (CCI) has been examining allegations since 2024 against Pernod Ricard, whose brands include Chivas Regal and Absolute vodka.The complaint alleged that Pernod provided corporate guarantees worth approximately $24 million to retailers’ bankers in 2021, enabling them to secure loans, while the retailers allegedly guaranteed that approximately 35 percent of the inventory in their stores consisted of Pernod’s brands.In its order, the BCCI said it found merit in these allegations and noted that “non-dealing in competitors’ product… is likely to distort demand by shifting retail demand away from competing brands”.The regulator noted that such practices could lead to restricted competition and reduced consumer choices in the market.“Such an action is likely to restrict choice for end consumers rather than benefit them in any way,” the CCI said in its order, quoted by Reuters.
In response to this development, Pernod Ricard said he “unequivocally denies any wrongdoing” and will cooperate with the regulator if contacted by authorities.The company said in a statement to Reuters, “We operate in accordance with the highest standards of compliance and governance, and we are confident that our business practices fully comply with the country’s laws and regulations. We consider any allegations that contradict this to be baseless.”The allegations were made by a person identified only as Mohit, who has previously filed public interest litigation.India is Pernod Ricard’s largest market in terms of sales volume. The company competes with players like Diageo and recorded sales of 274.45 billion rupees ($3 billion) in 2024-25.The report indicated that Pernod’s office in India was raided in 2024 in another antitrust case. The company is also vying for a $250 million federal tax claim, and is separately facing an investigation linked to alleged violations of Delhi’s liquor policy, allegations the company has denied.The ITC’s Investigation Division will now conduct a detailed investigation, a process that could take several months before a final order is issued.The regulator’s order also refers to a 2021 internal email in which Pernod executives allegedly discussed gaining a “strategic advantage” across New Delhi’s regions and offering €23 million ($27 million) to support retailers bidding for liquor licences.Reuters had previously reported in 2024 that an internal investigation by Pernod found that senior executives at its India unit had violated the law by allegedly colluding with retailers in New Delhi, even as the company publicly denied any wrongdoing.