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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 rigging with retailers in a southern state, it reported. Reuters, citing sources.
According to the report, the raids, which took place in Hyderabad and targeted retailers in Telangana, are among the biggest crackdowns on the industry in recent years.
“We take compliance with antitrust laws very seriously and are cooperating with authorities,” AB InBev, maker of Budweiser beer, told Reuters in its response. Pernod Ricard, known for brands such as Chivas Regal, did not immediately respond to a request for comment.
Business today was unable to independently verify the development.
The recent raids on Pernod’s Hyderabad office stem from a case filed by local competitor Radico Khaitan. Last year, Reuters reported that Radico accused Pernod of violating antitrust laws by striking deals with retailers in Telangana, offering them “discounts and benefits” in exchange for not selling Radico’s 8PM whiskey brand.
The investigation into AB InBev is linked to an investigation that began in July 2022, although the details remain undisclosed.
2018 ICC raids
In 2018, the CCI also raided the offices of major beer companies, including AB InBev, and launched an investigation into possible cartel behaviour. Although the investigation’s findings are 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 found that companies such as United Breweries Limited (UBL), Carlsberg India, SABMiller India (now part of AB InBev India) and All India Brewers’ Association (AIBA) were involved in a beer cartel.
These companies were found to have coordinated pricing, restricting supply of beer in certain states, sharing the market in Maharashtra and coordinating distribution to premium institutions in Bengaluru. The CCI imposed a combined fine of Rs 870 million ($116.75 million) on UBL and Carlsberg India, while AIBA was found responsible for facilitating the cartel.
The case was triggered when AB InBev used CCI’s “leniency program” to reveal that it had detected a cartel while integrating SABMiller’s operations in India. Later in 2018, UB and Carlsberg also submitted leniency applications.
