CCI orders probe into Pernod Ricard over alleged exclusive retail deals to boost market share in India 

INDIA – India’s Competition Commission of India (Competition Commission of India) has ordered an investigation into French spirits group Pernod Ricard over allegations that it entered into exclusive arrangements with retailers to promote its brands and restrict competitors in the Indian market. 

The regulator has been examining complaints since 2024 alleging that Pernod Ricard, whose portfolio includes Chivas Regal and Absolut vodka, colluded with retailers in New Delhi to increase its market share through preferential stocking agreements. 

According to the allegations, the company provided around US$24 million in corporate guarantees in 2021 to support retailers in obtaining bank loans. In return, retailers allegedly agreed to maintain shelf space where about 35% of stock consisted of Pernod brands, limiting visibility for competing products. 

In its order, the CCI stated that the alleged conduct “is likely to result in distortion of demand by way of moving retail demand away from the competing brands.” 

The regulator also noted that such arrangements could reduce consumer choice in the market. “Such an action is likely to result in restriction of choice to end consumers rather than benefit them in any manner,” the CCI added. 

Pernod Ricard has strongly denied the allegations. In a statement to Reuters, the company said it “unequivocally denies any wrongdoing” and would cooperate with authorities if contacted. 

“We operate to the highest standards of compliance and governance, and we are confident that our business practices fully adhere to the laws and regulations of the country. We view any allegations to the contrary as without merit,” the company said. 

The complaint was reportedly filed by an individual identified as Mohit, known for pursuing public interest litigation cases. 

The case adds to regulatory pressure on Pernod Ricard in India, its largest market by sales volume, where it competes with Diageo and other global spirits players. The company reported sales of 274.45 billion rupees (US$3 billion) in FY2024–25. 

Pernod Ricard’s India operations were previously subject to a 2024 antitrust raid, and the company is also facing a US$250 million tax demand and separate investigations related to alleged liquor policy violations, which it denies. 

The CCI investigation unit will now conduct a detailed review of the allegations, a process that may take several months before a final decision is issued. 

Internal documents cited in the order reportedly reference discussions among executives regarding a “strategic advantage” in New Delhi retail zones and financial support for retailers participating in licence bids. 

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