India Orders Antitrust Probe Into Liquor Giant Pernod's Dealing with Retailers
The watchdog said exclusive retailer deals may have distorted demand and limited consumer choice, citing allegations of $24 million in guarantees and 35% stock targets.
- On Friday, the Competition Commission of India ordered an investigation into French liquor giant Pernod Ricard over allegations of exclusive retail deals designed to unfairly boost its brands at competitors' expense.
- Investigators cited a 2021 internal Pernod email where executives discussed gaining a "strategic advantage" by providing €23 million in support to retailers bidding for New Delhi licenses.
- Pernod's market share grew from 15 percent to 35 percent after this assistance, with plans to reach 47 percent over three years. The Competition Commission said such action "is likely to result in distortion of demand" away from competing brands.
- This probe adds to mounting challenges for Pernod in India, its largest market by sales volume. The company is already contesting a $250 million federal tax demand and faces separate investigations into alleged liquor policy violations.
- The Competition Commission investigation unit will now examine the case in detail, a process that can take months before a final order. Pernod did not immediately respond to requests for comment.
13 Articles
13 Articles
India orders antitrust probe against liquor giant Pernod Ricard
NEW DELHI, India—India has ordered a probe into French spirits giant Pernod Ricard over allegations of striking exclusive deals with retailers to unfairly boost its products over competitors. The company, whose brands include Absolut vodka, Chivas Regal whisky and Beefeater gin, is alleged to have “proposed financial assistance of 200 crore rupees (about $22 million) to retailers in the form of corporate guarantees” in 2021. The complaint allege…
CCI orders antitrust probe into liquor major Pernod Ricard, seven others
The Competition Commission of India (CCI) has ordered an investigation into French liquor major Pernod Ricard over allegations that it entered into exclusive arrangements with retailers in Delhi-NCR to boost sales of its brands and restrict rival products.
Coverage Details
Bias Distribution
- 66% of the sources lean Right
Factuality
To view factuality data please Upgrade to Premium
