New Delhi city rejects Pernod liquor licence appeal, shows document

New Delhi city rejects Pernod liquor licence appeal, shows document

Pernod Ricard's latest attempt to obtain a licence to sell alcohol in India's capital has been rejected, with New Delhi authorities citing investigations into suspected violations of the city's liquor policy, an excise department order shows.

The rejection adds to Pernod's India woes, with the French drinks group facing two antitrust cases in India while it also contests a tax demand for nearly $250 million for alleged undervaluation of imports.

Pernod's brands, including Chivas Regal and Absolut vodka, have not been available in the city since late 2022 after a previous licence application was rejected in April last year.

The company has denied any wrongdoing and said it is eligible for a licence.

India is a key market for Pernod, where it has a 17% share and competes with rival Diageo. As an urban tourist hub, New Delhi serves as a showcase market for premium brands, making it critical for any liquor company.

But in Tuesday's 24-page order, which was not public but has been seen by Reuters, New Delhi Excise Commissioner Krishna Mohan Uppu rejected Pernod's appeal against the rejection of its previous licence application, noting the investigations against the company.

Pernod did not respond to a request for comment.

Tuesday's order showed that Pernod's appeal argued that the company had fulfilled all requirements for the city licence and that city officials were pre-empting ongoing criminal proceedings.

The order cited an ongoing investigation by India's federal financial crime agency, which has accused Pernod of illegally profiting by giving false information to Delhi officials in 2021 and violating rules by financially supporting retailers in exchange for them stocking more of its brands.

Pernod has repeatedly denied wrongdoing.

India accounts for 10% of Pernod's group sales. The Delhi business has in the past accounted for 5% of Pernod's sales in India, CFO Helene de Tissot said last year.