The Aryavarth Express
Agency (New Delhi): Pernod Ricard, the French spirits giant known for brands like Chivas Regal and Absolut vodka, is facing a new antitrust challenge in India. The Competition Commission of India (CCI) is examining claims that the company colluded with retailers in New Delhi to increase its market share. This inquiry adds to Pernod’s ongoing difficulties in India, including issues related to licenses, taxes, and previous antitrust allegations.
The allegations, brought forth in a confidential filing by an individual named Mohit, suggest that Pernod Ricard engaged in practices to manipulate market dynamics by providing financial incentives to retailers. Specifically, the company is accused of offering corporate guarantees to help retailers secure loans for bidding on store licenses, on the condition that they prioritize Pernod’s products in their inventory.
These practices allegedly involved Pernod committing $24 million in guarantees in 2021 to support bids for store licenses, with the expectation of generating substantial returns and strengthening market control. The case also references a Pernod internal communication that outlines strategies to “take control of retail shops” in the capital.
Pernod Ricard has responded to the allegations by asserting its commitment to complying with local laws, although it claims to have not been officially notified about the antitrust case. Meanwhile, the CCI has yet to decide whether to launch a full investigation or dismiss the claims.