CCI Launches Investigation into Pernod Ricard for Exclusive Retail Deals in Delhi

The Competition Commission of India has initiated an investigation into Pernod Ricard, following allegations of exclusive agreements with Delhi retailers that may distort market competition. The inquiry stems from complaints that the company provided significant financial support to retailers in exchange for preferential treatment, potentially sidelining rival brands. This investigation adds to the legal challenges faced by Pernod in India, where it is already under scrutiny for other regulatory issues. The CCI's findings could have significant implications for the company's operations in its largest market by sales volume.

By Narendra Chaudhary May 9, 2026, 12:35 IST

Investigation Initiated by CCI

The Competition Commission of India (CCI) has initiated a comprehensive investigation into the French liquor company Pernod Ricard. This action follows allegations that the company engaged in exclusive agreements with retailers in Delhi, promoting its brands at the expense of competitors, as reported by a news agency. The CCI has been looking into these complaints since 2024, focusing on how Pernod Ricard, known for brands like Chivas Regal and Absolut, allegedly collaborated with liquor retailers in New Delhi to unfairly boost its market presence.

According to the allegations, Pernod Ricard provided approximately $24 million in corporate guarantees to banks in 2021, facilitating loans for Delhi retailers. In exchange, these retailers purportedly ensured that around 35% of their liquor inventory consisted of Pernod products. The CCI has determined that there are sufficient grounds to proceed with a formal investigation.

The regulator's order indicated that the exclusion of competitors' products could distort market demand by diverting retail interest away from rival brands. Pernod Ricard has yet to respond to inquiries regarding this matter.

The complaint was lodged by an individual named Mohit, who is recognized for initiating public interest litigation. This case adds to the mounting legal challenges faced by Pernod in India, the company's largest market by sales volume. Competing with Diageo, Pernod reported sales of Rs 27,445 crore in FY25. Additionally, the company's offices in India were raided last year as part of a separate antitrust inquiry. Pernod is also contesting a $250 million tax claim from federal authorities and is under investigation for alleged breaches of Delhi's liquor regulations, which the company has denied.

Details from Internal Communications

Internal Email Mentioned In CCI Order

The CCI's order referenced an internal email from Pernod dated 2021, where executives reportedly discussed strategies to gain a competitive edge in various liquor zones in Delhi. The email also indicated that the company planned to provide 23 million euros in support to retailers applying for liquor licenses. The CCI expressed concerns that such actions could hinder competition and limit consumer choices.

The regulator noted, “Such actions are likely to restrict consumer choice rather than enhance it.” Furthermore, a 2024 report indicated that an internal investigation by Pernod had revealed that some senior executives in its Indian operations had breached laws by colluding with retailers in Delhi, despite the company's public denial of any wrongdoing and its legal challenges against these allegations.

(With inputs from a news agency)