The Competition Commission of India (CCI) has raided the offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev (AB InBev) amid an investigation into allegations of price fixing with retailers in a southern state, Reuters reported, citing sources.
The raids in Hyderabad and targeting retailers in Telangana are among the biggest industry crackdowns in recent years.
Business today The development could not be independently confirmed.
“We take antitrust compliance very seriously and will cooperate with the authorities,” Budweiser beer maker AB InBev told Reuters in its response. Pernod Ricard, known for brands such as Chivas Regal, did not immediately respond to a request for comment.
“As a responsible corporate citizen, we will comply with Indian laws. We are cooperating with the competent authorities in this matter, and we rely on them to demonstrate our good faith and compliance,” Pernod Ricard India said. Business today.
The recent raids on Pernod's Hyderabad office stemmed from a lawsuit filed by a local competitor, Radico Khaitan. Last year, Reuters reported that Radico had accused Pernod of violating antitrust laws by dealing with retailers in Telangana, offering them “discounts and benefits” in return for not selling Radico's 8PM whiskey brand.
The investigation into AB InBev is linked to an investigation that began in July 2022, but the details have not been released.
2018 CCI Raids
In 2018, the CCI also raided the offices of major beer companies, including AB InBev, and launched an investigation into potential cartel conduct. While the inquiry's findings were not a final verdict, they raised concerns about the conduct of brewers, who dominate India's $7 billion beer market, which accounts for 88% of the industry.
In September 2021, the CCI concluded that companies such as United Breweries Limited (UBL), Carlsberg India, SABMiller India (now part of AB InBev India), and the All India Brewers' Association (AIBA) were involved in a beer cartel.
These companies were found to have coordinated pricing, restricted supply of beer in certain states, shared the market in Maharashtra and coordinated distribution to premium establishments in Bengaluru. The CCI imposed a joint fine of Rs 870 crore ($116.75 million) on UBL and Carlsberg India, and found AIBA liable for facilitating the cartel.
The case began when AB InBev used the CCI's “lenience program” to uncover a cartel in the merger of SABMiller's operations in India. Later in 2018, UB and Carlsberg also filed relaxation applications.