The Competition Commission of India (CCI) has been looking into accusations since 2024 that Pernod, which owns brands like Chivas Regal and Absolut vodka, conspired with retailers in New Delhi to enhance its market share.
The complaint claims that in 2021, Pernod issued $24 million in corporate guarantees to bankers to assist city retailers in obtaining loans, with retailers ensuring that 35% of their stock featured Pernod brands.
The CCI indicated it found substantial evidence in the claims, highlighting in its order that “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.”
Pernod has not yet responded to a request for comment.
The allegations were brought forth by an individual known only as Mohit, who has a history of pursuing public interest litigations.
This case adds to the challenges faced by Pernod in India, its largest market by sales volume. The company competes with Diageo, among others, and reported sales of 274.45 billion rupees ($3 billion) in 2024-25.
A Pernod India office was raided in 2024 as part of a separate antitrust investigation. The company is also contesting a $250 million federal tax demand and faces an additional inquiry into alleged breaches of New Delhi’s liquor policy, which it denies.
Internal email
The CCI’s investigation unit will now thoroughly review the case, a process that could take months before reaching a final decision.
The order issued on Friday referenced a 2021 internal email from Pernod executives discussing the acquisition of a “strategic advantage” across various New Delhi zones and providing 23 million euros ($27 million) in support to retailers applying for licenses.
The CCI stated that this constituted a distortion of retail demand to favor Pernod.
“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 order.
An internal investigation by Pernod later discovered that senior officials in its India division had breached the law by collaborating with retailers in New Delhi, despite the company continuing to deny any wrongdoing in court and publicly, according to Reuters in 2024.
