The raids, which took place in Hyderabad, are among the largest industry crackdowns in recent years.
The Competition Commission of India (CCI) has raided offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev (AB InBev) amid an investigation 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.
Pernod, maker of brands like Chivas Regal, did not immediately respond to a request for comment.
In a statement, InBev, which makes Budweiser, said:
"While we cannot comment on the specifics, we take antitrust compliance very seriously. We are working together in collaboration with the authorities".
CCI 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 stems from an anonymous complaint accusing retailers in Telangana of forming "cartel-like" agreements to boycott all beer brands except AB InBev's, resulting in a surge in its market share. The CCI's initial assessment indicated that the case warranted further investigation due to evidence of a "sudden decline" in the market shares of other companies. Several state retailers were also raided in connection with the investigation.
In 2023, Pernod held a 16% share of India's $35 billion spirits market, while AB InBev had about 17% of the beer market, second only to Heineken's United Breweries.
The latest raids add to Pernod's ongoing regulatory troubles in India, where it is also facing a $250 million federal tax claim for alleged undervaluation of imports, two antitrust cases, and a ban on selling alcohol in New Delhi due to an investigation into liquor policy violations. Pernod has denied any wrongdoing in all matters.
Source: Reuters, The Economic Times
