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CASTLE MALTING NEWS in partnership with www.e-malt.com Chinese
19 December, 2024



Brewing news India: India's antitrust body raids AB InBev, Pernod Ricard offices

India's antitrust body has raided some offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev as it investigates accusations of price collusion with retailers in a southern state, sources familiar with the matter said.

Wednesday's surprise raids by the Competition Commission of India (CCI) targeted offices in the city of Hyderabad, and some retailers in nearby Telangana state, the five sources said, in one of the biggest such industry crackdowns in recent years.

The sources spoke on condition of anonymity as they were not authorised to speak to the media.

In a statement, AB InBev, which makes Budweiser beer, said, "While we cannot comment on the specifics, we take antitrust compliance very seriously. We are working together in collaboration with the authorities."

Pernod, maker of brands such as Chivas Regal, said in a statement it complies with Indian laws and is cooperating with the authorities on the matter.

The CCI did not immediately respond to a request for comment on the matter, but its rules require details of raids and investigations in price collusion to be kept confidential until the conclusion of cases.

The biggest previous crackdown in the beer industry, in 2018 saw raids on Carlsberg, AB InBev and United Breweries in an investigation that ran for years.

Heineken-controlled United Breweries and Carlsberg were fined more than $100 million collectively in 2021, though both have repeatedly denied wrongdoing.

This week's raids at Pernod's Hyderabad office follow a case filed by local rival Radico Khaitan, three of the sources said.

Last year, Reuters reported that Radico accused Pernod of violating antitrust laws by entering into pacts with retailers in Telangana that offered them "discounts and benefits" to abstain from selling Radico's 8PM whisky brand.

The sources said the AB InBev raid was related to an investigation triggered in July 2022, details of which are not public.

The case was based on an anonymous complaint that accused retailers in Telangana of entering into some "cartel-like" agreements on beer purchases, boycotting all brands other than AB InBev's, leading to a market share surge for the company, according to a Reuters review of case papers.

The CCI's initial assessment said the case merited investigation as there was evidence of "sudden decline" in market shares of companies other than AB InBev, the document showed.

Some state retailers were also raided this week in relation to the cases, the sources added.

In 2023, Pernod had a share of 16% by volume in India's $35- billion spirits market, Euromonitor says. AB InBev holds a share of roughly 17% in a beer market that amounts to 3 billion litres a year, second to Heineken's United Breweries.

The latest CCI raids add to Pernod's regulatory challenges in India.

Pernod is battling a $250-million federal tax demand for allegedly undervaluing imports, faces two antitrust cases and cannot sell its alcohol in New Delhi, on grounds of an investigation into violations of its liquor policy.

Pernod has denied wrongdoing in all cases.





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