The Competition Commission of India (CCI) has raided the offices of alcohol giants Pernod Ricard and Anheuser-Busch InBev (AB InBev) over price collusion with retailers in a southern state, Reuters reported citing sources.

According to the report, the raids on traders in Hyderabad and Telangana are among the biggest crackdowns on the industry in recent years.

Business Today could not independently verify the development.

"We take antitrust compliance very seriously and are cooperating with the authorities," AB InBev, the maker of Budweiser beer, said in its response to Reuters. Pernod Ricard, known for brands such as Chivas Regal, did not immediately respond to a request for comment.

"As a responsible corporate citizen, we comply with the laws of India. We are cooperating with the relevant authorities in this regard and rely on them to demonstrate our good faith and compliance," Pernod Ricard India said. Business Today.

The latest raids on Pernod's Hyderabad office stemmed from a case filed by local competitor Radico Khaitan. Last year, Reuters reported that Radico had accused Pernod of violating antitrust laws by striking deals with Telangana retailers, offering them "discounts and perks" in exchange for not selling Radico's 8PM whiskey brand.

The investigation into AB InBev is linked to a probe that began in July 2022, although details have not been disclosed.

2018 CCI raids

In 2018, the CCI also raided the offices of major beer companies, including AB InBev, and launched an investigation into possible cartel conduct. While the findings of the study are not a final verdict, they have raised concerns about the behavior of brewers who dominate India's $7 billion beer market, accounting for 88% of the industry.

In September 2021, the CCI concluded that United Breweries Limited (UBL), Carlsberg India, SABMiller India (now part of AB InBev India) and the All India Brewers' Association (AIBA) were involved in a beer cartel.

These companies coordinated prices, restricted the supply of beer in certain states, shared the Maharashtra market and distributed to premium establishments in Bangalore. The CCI imposed a joint penalty of Rs 870 crore ($116.75 million) on UBL and Carlsberg India, and held AIBA responsible for facilitating the cartel.

The case came after AB InBev disclosed that it had used the CCI's "laxity program" to catch a cartel while integrating SABMiller's operations in India. Later in 2018, UB and Carlsberg also submitted applications for protection.