Indian competition authorities have ordered an investigation into Pernod Ricard concerning suspected anti-competitive practices with alcohol retailers in New Delhi.
The Competition Commission of India (CCI) is investigating allegations that the French group entered into exclusivity agreements with certain distributors in order to favor its own brands at the expense of those of its competitors.
According to regulatory documents cited by Reuters, the investigation focuses in particular on financial guarantees of approximately $24 million granted by Pernod Ricard to banks in 2021 to help retailers obtain loans. In exchange, these retailers allegedly reserved about 35% of their inventory for the group's products.
The ICC believes there is sufficient evidence to continue the investigation, stating that the lack of marketing of competing products could lead to a distortion of demand in the Indian spirits market.
Pernod Ricard, owner of brands including Chivas Regal and Absolut, rejected the accusations and stated that it "categorically denies any wrongdoing".
India represents one of the most important and fastest growing markets for the French group, which generates a significant portion of its global sales there.
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