CCI raids Pernod and AB InBev in ‘price collusion’ crackdown on alcohol industry: report

The Competition Commission of India (CCI) raided the offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev (AB InBev) amid a probe into allegations of price collusion with retailers in a southern state, Reuters reported, citing sources.

The raids, which took place in Hyderabad and targeted retailers in Telangana, are among the largest industry crackdowns in recent years, according to the report.

Business today He was unable to independently verify the development.

“We take antitrust compliance 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.

“As a responsible corporate citizen, we abide by Indian laws. We are cooperating with and relying on the relevant authorities in this matter to demonstrate our good faith and compliance,” Pernod Ricard India said. Business today.

The recent raids on Pernod’s Hyderabad office stem from a case filed by local rival Radico Khaitan. Last year, Reuters reported that Radico had 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 the AB InBev case is linked to an investigation that began in July 2022, although details have not yet been revealed.

CCI raids 2018

In 2018, the CCI also raided the offices of major beer companies, including AB InBev, and launched an investigation into possible cartel behavior. Although the investigation’s findings are not a final ruling, they have raised concerns about the behavior of beer companies that dominate India’s $7 billion beer market, accounting for 88% of the industry.

In September 2021, the CCI concluded that companies like United Breweries Limited (UBL), Carlsberg India, SABMiller India (now part of AB InBev India), and All India Brewers Association (AIBA) were involved in the beer cartel.

These companies were found to have coordinated prices, restricted beer supplies in some states, market-sharing in Maharashtra, and coordinated distribution to premium establishments in Bengaluru. The CCI imposed a combined penalty of Rs 870 crore ($116.75 million) on UBL and Carlsberg India, while the AIBA was found liable for facilitating the cartel.

The case began when AB InBev used CCI’s “leniency programme” to disclose its discovery of a cartel while consolidating SABMiller’s operations in India. Later in 2018, UB and Carlsberg also submitted leniency requests.