Drinks giant Pernod Ricard has been suffering from massive losses in its Indian operations because its brands have not been available in the national capital, New Delhi, for the past six months. It is due to the delay in its licence application for the Delhi city regulatory authority, which hasn’t been approved yet. Since August 2022, when the application was made, Pernod has been left out of city’s bars and liquor stores. The issues have also led to a significant decrease in the company’s market share and revenues.
Pernod Ricard is a French spirits group and alcoholic beverages company with popular brands like Chivas Regal, Blenders Pride, 100 Pipers and Absolut vodka. As a key growth market, the company has been facing regulatory challenges in India for months. It is currently facing $250 million tax demand for importing undervalued products, and a federal investigation for alleged violations of Delhi city’s liquor policy in 2021.
Mayank Bhatt is the CEO of Impresario Entertainment & Hospitality which runs restaurants and eateries like Social and Smoke House Deli, and he explained the lack of Pernod’s brands in the city has been a huge setback for consumers and businesses. With the absence of their favorite good, customers have had to settle for lesser known and lower premium brands, which affects their guest experience.
The Delhi High Court has asked the local government to decide within two weeks on whether it will issue the license to Pernod Ricard. Both Pernod and customers across India await the decision to see if Pernod will once again be available across the country.