Beverage Giants Pernod Ricard and Anheuser-Busch Reportedly Raided by India’s Antitrust Group

A competition watchdog in India performed raids on some of Pernod Ricard and Anheuser Busch’s offices. (Photo: AP Photo/Gurinder Osan)

Reuters reported on Thursday that some of the offices of two major alcohol distributors, Pernod Ricard and Anheuser-Busch InBev, were raided by the Competition Commission of India. Per Reuters, an anonymous source shared that Indian antitrust organization raided offices in Hyderabad and shops in Telangana state.

The outlet reports the CCI’s actions marked one of the largest “industry crackdowns” within the last few years.

AB InBev is one of the largest beer suppliers, with a portfolio that includes Corona Extra, Michelob Ultra, Budweiser and Stella Artois. Pernod Ricard is the distributor behind brands like Jameson, Malibu Rum, The Glenlivet, Absolut Vodka and Plymouth Gin.

“While we cannot comment on the specifics, we take antitrust compliance very seriously,” said AB InBev in a statement. “We are working together in collaboration with the authorities.”

According to Reuters, Pernod Ricard issued a statement claiming it is “cooperating with the authorities on the matter” and denies the accusations.

News of Pernod Ricard’s antitrust probe first made headlines in May, when the entity was accused of providing $24 million in “support” for retailers in New Delhi and additional accusations of lowering the value of imported spirits.

The company faced other accusations, which included using pay-to-play tactics by offering retailers assistance in securing liquor licenses if they put Pernod Ricard’s spirits on shelves.

Pernod Ricard’s woes in India have been on the rise for a couple of years now. The country was once the largest market for the distributor until July 2023.

That month, Pernod Ricard had its L-1 liquor license rejected by India’s New Deli High Court, making the distributor unable to sell liquor in that territory. Pernod challenged the ruling, yet the judge remained firm. To add to Pernod’s legal woes, one of the company’s employees was sent to prison.

The CCI raid took place after the organization discovered what Reuters reported was a “sudden decline” in market shares of other companies excluding AB InBev.

Other Global Crackdowns on Big Liquor

It seems like giant liquor conglomerates around the world are under increased scrutiny from watchdog organizations.

On Dec. 12, the Federal Trade Commission announced it was filing a complaint against America’s largest distributor of wine and spirits, Southern Glazer’s Wine and Spirits. The government watchdog is accusing Southern Glazer’s of partaking in price discrimination and favoring big box retailers over “mom and pop” stores.

“When local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices — and communities suffer,” FTC Chair Lina M. Khan expressed, according to a news release. “The law says that businesses of all sizes should be able to compete on a level playing field.”