Pernod Ricard has suffered heavy losses in New Delhi, where its brands are now unavailable. A federal investigation was conducted last November against the French wine and spirits giant, suspected of violations of the Indian capital’s alcohol policy.
According to a report conducted by Reuters, French spirits giant Pernod Ricard is experiencing significant financial losses in India due to the unavailability of its brands in the city of New Delhi for the past six months.
This situation is due to a licensing issue, which prevents the group from selling its products in bars and liquor stores in the city. Pernod Ricard, which has been operating for more than 20 years in India, a crucial market for the group, has to obtain licenses issued by each state individually, which have to be renewed every year, in most cases.
In a court document dated March 27, Pernod Ricard said it applied for a license in August 2022 from the New Delhi decision-making authority and has yet to receive a response.
This situation has a significant impact on the company’s financial results. The document states that the group is suffering “massive losses” and a “loss of market share and revenue”. Although the amount of the losses has not been quantified, the group says they are “increasing daily”.
Featured photo : © Pernod Ricard