Pernod Ricard Loses Appeal For Liquor License in India’s Capital After Antitrust Investigations and Other Legal Woes

Reuters reported on Tuesday that Pernod Ricard lost an appeal to re-obtain its liquor license and sell spirits like Chivas Regal and Absolut Vodka in the Indian capital of New Delhi. This latest incident adds to a long list of legal woes for the company, including two antitrust probes from India's "competition watchdog" claiming the spirits giant offered $24 million in "support" for retailers in bidding on liquor store licenses. The company additionally faces a demand from the Indian government that it pay almost $250 million after Indian authorities claimed Pernod Ricard undervalued imports for a decade, according to Reuters. The outlet reported on the antitrust investigation in May , claiming that an individual who went simply by the name of "Mohit" filed against the entity in March. The Competition Commission of India  is reviewing Mohit's claims that Pernod promised liquor licenses to retailers in order to increase market share in the territory Pernod Ricard denies any wrongdoing in the country. When it appealed the country's denial of its liquor license, the distributor alleged it met all the requirements for a liquor license in New Delhi, and that authorities were moving forward with legal action against the company. Reuters reported that India is a key market for Pernod Ricard and accounts for 10% of its sales. Delhi is a particularly lucrative market, as sales within the city amounted to 5% of that total. Pernod's efforts to recapture its liquor license have been ongoing since July 2023. The New Delhi High Courts rejected the license and accused the company of money laundering. One of Pernod Ricard's employees, an individual named Binoy Babu, ended up facing prison time. The New Delhi High Courts charged Pernod Ricard with helping specific retailers garner loans from HSBC banks so long as the prospective retailers guaranteed they would stock their shelves with Pernod products like Jameson, Ballantine's and other brands. Pernod challenged the ruling, but the courts denied it. Authorities believed Pernod Ricard played a fairly active role in the scam, and cite this as their reason for not renewing the company's license within New Delhi. Yet, the brand maintained its innocence and claimed that one employee's actions should not cast a negative light on the spirits supplier as a whole.

"[Pernod Ricard] cannot be equated with a criminal," a statement from the company read.

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