Published by Global Banking & Finance Review®
Posted on January 6, 2025
3 min readLast updated: January 27, 2026
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Pernod Ricard is being investigated by India's CCI for colluding with retailers to promote its whisky brand, following a complaint by Radico Khaitan.
By Aditya Kalra
NEW DELHI (Reuters) - Indian antitrust investigators raided Pernod Ricard's office in December after finding the French liquor giant colluded with a state's retailers to promote its whisky brand and ignore a rival's, according to a government document seen by Reuters.
In the biggest liquor sector crackdown in recent years, Pernod's office in southern Telangana state was raided in December by Competition Commission of India (CCI) officers. The case was triggered by a 2022 complaint by Indian rival Radico Khaitan, which accused Pernod of colluding with retailers not to stock a Radico whisky brand.
The investigation and the raids are the latest regulatory and legal challenge for Pernod in India, its biggest market globally by volume. Pernod is contesting a $250 million India tax demand for allegedly undervaluing imports and also faces an investigation into violations of New Delhi city's liquor policy.
In the latest CCI complaint, Radico in its submissions had relied on an undated and unsigned business agreement that promised some retailers "special discounts" if they did not sell Radico's brand, but the investigators have found Pernod was behind the arrangement, the government document shows.
Ahead of the December raid, CCI's investigation unit found the alleged anti-competitive agreement was "facilitated and coordinated" by Pernod India, according to the document detailing initial findings of the investigation unit.
Pernod further made incentive payments to retailers to promote its brand through an agent, a local marketing agency in Hyderabad city, the document added.
"Incentive to retail licensees were being paid by Pernod ... through its agent," said the document, contents of which Reuters is the first to report.
Pernod, maker of brands such as Chivas Regal, did not respond to Reuters queries. After the December raids, it told Reuters it complied with Indian laws and was cooperating with the authorities.
The CCI did not respond on Monday, and as per its policy, keeps details of raids and investigations of collusion cases confidential. The ongoing investigation may take several months to complete and Pernod can challenge its findings.
In a separate New Delhi city, federal investigators accused Pernod of similar practices, accusing it of offering financial support to New city retailers in exchange for ensuring 35% of stock in their shops is Pernod's. The company has repeatedly denied any wrongdoing.
In the Telangana CCI case, it is alleged Pernod asked some retailers to achieve a 70% market share for its brand, earning discounts and royalties for doing so.
The December raids were aimed at collecting evidence, such as meeting records or copies of agreements, that may help the CCI investigation unit develop its case, according to the government document.
If found guilty, Pernod Ricard India may be liable to a penalty amounting to up to three times its profit for each year during which the collusion took place, or 10% of its turnover for each year of wrongdoing, whichever is higher.
Pernod's 2023-24 India sales were $3.1 billion.
(Reporting by Aditya Kalra; Editing by Bernadette Baum)
The investigation was triggered by a complaint from Radico, which alleged that Pernod colluded with retailers to promote its whisky brand.
If found guilty, Pernod Ricard India may face penalties amounting to up to three times its profit for each year of collusion or 10% of its turnover for each year.
The Competition Commission of India raided Pernod's office in Telangana to collect evidence related to the alleged anti-competitive agreements.
Pernod allegedly made incentive payments to retailers through a local marketing agency to promote its brand and achieve a specified market share.
Pernod Ricard is the largest liquor company in India by volume, with sales of $3.1 billion in the 2023-24 fiscal year.
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