French premium spirits company Pernod Ricard’s India operations are trying to sail through troubled waters. The company is facing an antitrust probe following a complaint to the Competition Commission of India (CCI) by Radico Khaitan, a domestic drinks producer.
Radico Khaitan alleged that Pernod Ricard India colluded or conspired with the retailers in Telangana offering them ‘additional discounts and benefits’ if priority and favouritism was given to Royal whisky brand over 8PM whisky brand.
The brand and the retailers entered into a ‘Royal Stag Agreement’ to make sure that the brand got 70 percent share of shelf space, a media report cites.
But, this is not the only concerning factor for the French company. In January, Pernod Ricard disagreed with India’s Enforcement Directorate’s allegations that it swayed from the rules governing relationships with the retailers in Delhi.
It was claimed by the ED that the Indian operations of Pernod Ricard asked HSBC to provide loans to the retailers which was then used as a support to bid for store licences in the city.