The Competitors Fee of India (CCI) on Friday (Might 8, 2026) ordered an investigation into French liquor group Pernod Ricard for allegedly coming into into unique agreements with retailers that promoted its manufacturers at rivals’ expense, a regulatory order stated.
The watchdog has been investigating allegations since 2024 that Pernod, whose manufacturers embrace Chivas Regal and Absolut vodka, colluded with the New Delhi retailer to extend market share.
The criticism alleges that Pernod supplied bankers with a $24 million company assure in 2021 to assist town retailer safe financing, making certain the retailer comprised 35% of its retailer stock with Pernod manufacturers.
CCI stated there was benefit within the allegations, noting in its order that “not carrying rivals’ merchandise…is more likely to end in demand distortion by shifting retail demand away from competing manufacturers.”
In an announcement on Saturday (Might 9), Pernod stated:ReutersThe corporate “unequivocally denies any wrongdoing” and says it is going to cooperate with the CCI if authorities contact it.
“We function to the best requirements of compliance and governance and imagine that our enterprise practices are in full compliance with nationwide legal guidelines and laws. We take into account any allegations on the contrary to be with out benefit,” the corporate stated in an announcement.
The criticism was made by a person recognized solely by his first identify, Mohit, who has a historical past of submitting public curiosity litigation.
The incident poses additional challenges for Pernod in India, its largest market by quantity. The corporate competes with the likes of Diageo out there, with reported gross sales of 274.45 billion rupees ($3 billion) in 2024-25.
Pernod’s India workplace was raided in 2024 in a separate antitrust case. The corporate can also be contesting a $250 million federal tax invoice and faces a brand new investigation into alleged violations of New Delhi’s liquor coverage, which it denies.
Inner e mail
The CCI’s investigation wing will now examine the case intimately, however it could take a number of months earlier than remaining orders are handed.
Friday’s (Might 8) order cited an inside Pernod e mail from 2021 by which executives mentioned gaining a “strategic benefit” throughout the New Delhi zone and providing 23 million euros ($27 million) in help to retailers bidding for licenses.
CCI stated this amounted to distorting retail demand to learn Pernod.
“Slightly than conferring any profit to the top client, such actions are more likely to end in limiting the alternatives of the top client,” the CCI stated in its order.
An inside investigation by Pernod later discovered that senior executives in its India unit had colluded with the New Delhi retailer to violate the legislation, regardless that the corporate had denied wrongdoing in court docket and publicly. Reuters Reported in 2024.
