Pernod Ricard: massive losses in India after federal investigation

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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.

 

Massive losses

 

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”.

 

Two sources close to the case revealed that the group’s brands, Chivas Regal, Blenders Pride, 100 Pipers and Absolut, are not currently available in New Delhi.

 

Federal investigation

 

A federal investigation is being conducted against Pernod Ricard for suspected violations of the Delhi government’s alcohol policy. A sales manager of the local subsidiary was arrested last November as a result of this investigation. Alcohol fraud and money laundering were mentioned.

 

The Indian authorities are also claiming the equivalent of 250 million euros from the local subsidiary of Pernod Ricard, for having underestimated the value of imports of concentrates for several years, in order to limit the amount of duties to be paid.

 

At present, the New Delhi authorities have not commented on this situation, and Pernod Ricard did not wish to comment on the subject.

 

Read also >Veuve-Clicquot: a voyage of discovery to learn more about champagne

 

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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.

 

Massive losses

 

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”.

 

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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.

 

Massive losses

 

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”.

 

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Thanks to its extensive knowledge of these sectors, the Luxus + editorial team deciphers for its readers the main economic and technological stakes in fashion, watchmaking, jewelry, gastronomy, perfumes and cosmetics, hotels, and prestigious real estate.

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