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Pernod loses appeal for New Delhi liquor licence
Pernod Ricard’s hopes of being allowed to resume trading in the Delhi region have been dashed, following its latest bid to have its licence restored.
The city’s authorities have rejected the French group’s latest bid to have its licence restored on the basis that investigations are ongoing into suspected violations of local alcohol sales laws.
The world’ second largest premium alcohol group is the subject of two antitrust cases in India and is also contesting a tax demand for nearly $250 million for alleged undervaluation of imports.
The company denies any wrongdoing.
In its appeal Pernod argued that it had fulfilled all requirements for the city licence and that officials were pre-empting the outcome of ongoing proceedings.
The Delhi dispute harks back to 2022 when the local state sales monopoly was dropped to allow approved independent retailers to sell alcohol.
Rescinded
Pernod’s licence was rescinded when it was charged with authorising bank loans to retailers in return for their stocking minimum levels of its brands.
The French group denies it acted illegally and the city has since reinstated its sales monopoly.
Pernod Ricard’s brands have not been available in the city since late 2022 after a previous licence application was rejected in April last year.
Key market
India is a key target market for Pernod Ricard which has a share of about 17% of all sales in the country, which in turn represents 10% of the group’s global business.
Delhi previously accounted for only about 5% of its sales in India but is a prime showcase, especially for the tourist market.
A spokesperson told db: “Pernod Ricard India will review its options in light of the recent decision.
“We are eager to re-start supplying to Delhi at the earliest opportunity. As a responsible corporate citizen, Pernod Ricard India is committed to being compliant with the laws of the country and we deny any alleged wrongdoing ascribed to us. Pernod Ricard’s business in India is a strong success story in spite of this situation in New Delhi city.”
Losses
It was reported by db last year that the French company was facing “massive losses” because its brands had not been available for purchase in India’s capital, New Delhi.
CEO Alexandre Ricard has declared India a “must win” as part of his global strategy for Pernod Ricard.
The company has been trading successfully in India for more than 20 years following its leading role in the takeover of the Seagram drinks empire, including its large interests in the country.
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