New Delhi: India’s antitrust regulator has ordered a detailed investigation into French liquor giant Pernod Ricard over allegations that it entered into exclusive arrangements with liquor retailers in Delhi to unfairly promote its brands, including Chivas Regal and Absolut.
The order was issued by the Competition Commission of India (CCI), which said it found sufficient grounds to launch a formal probe into the company’s business practices in the national capital.
According to reports, the regulator has been examining complaints against Pernod Ricard since 2024.
Allegations linked to exclusive retailer arrangements
The complaint alleged that Pernod Ricard provided corporate guarantees worth nearly $24 million to banks in 2021, enabling certain liquor retailers in Delhi to secure loans.
In return, the retailers allegedly ensured that around 35 per cent of the liquor stocked in their stores consisted of Pernod Ricard brands.
The CCI stated in its order that such arrangements could potentially distort market competition by reducing the visibility and availability of rival liquor brands.
“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 reportedly observed.
The competition watchdog added that such practices could negatively impact consumer choice in the retail liquor market.
Internal email cited in investigation
The CCI order also referred to an internal 2021 email allegedly exchanged among Pernod Ricard executives.
According to the regulator, the email discussed gaining a “strategic advantage” across various Delhi liquor zones.
The communication reportedly also mentioned providing financial support worth 23 million euros to retailers bidding for liquor licences in the city.
The regulator stated that these actions could amount to anti-competitive conduct and unfair market influence.
“Such an action is likely to result in restriction of choice to end consumers rather than benefit them in any manner,” the CCI noted in its observations.
Pernod Ricard yet to respond publicly
Pernod Ricard did not immediately issue a public response to the latest CCI order.
The complaint in the matter was reportedly filed by an individual identified as Mohit, who is known for filing public interest litigation cases.
The investigation adds to a series of regulatory and legal challenges currently faced by Pernod Ricard in India, which remains the company’s largest market globally by sales volume.
The liquor giant competes aggressively with Diageo in the Indian alcoholic beverages market.
According to reports, Pernod Ricard recorded sales of around Rs 27,445 crore in FY25.
Previous investigations and tax disputes
The company has already been facing multiple investigations and regulatory proceedings in India over the past few years.
Last year, Pernod Ricard’s India offices were reportedly raided in connection with another antitrust investigation.
The company is also contesting a tax demand worth approximately $250 million issued by federal authorities.
Additionally, Pernod Ricard is facing a separate investigation linked to alleged irregularities in Delhi’s liquor policy.
The company has consistently denied wrongdoing in previous cases and has challenged several allegations in court.
Competition concerns under scrutiny
The latest probe highlights increasing scrutiny by Indian regulators on alleged anti-competitive practices in the liquor retail and distribution sector.
Experts believe the investigation could have wider implications for how liquor companies structure partnerships with retailers and distributors in regulated state markets such as Delhi.
The CCI’s detailed probe is expected to examine financial arrangements, retailer agreements, internal communications and market impact before any final conclusions are reached.
Further proceedings in the case are likely to continue over the coming months.