Pernod Ricard launches inquiry after raid on its warehouse in Rajasthan

Pernod Ricard launches internal probe after Rajasthan officials find Ballantine's labels on bottles of cheaper local liquor during a warehouse raid

Pernod Ricard has launched an internal inquiry in India after a raid on one of its warehouses, ‍which local officials said had found ​its Ballantine's whisky labels stuck to bottles of cheaper local liquor.

In a statement to Reuters late on Thursday, Pernod Ricard noted the incident occurred at one of its marketing warehouses and said it had launched an internal inquiry to determine how the bottles came to be present at that location.

"Pernod will cooperate fully with the relevant authorities ​as required. We are confident that the matter will be clarified," the French drinks group added.

Officials in the state of Rajasthan, one of India's most populous states and a top tourist destination, said an employee had been arrested after the raid on a warehouse in the city of Bhilwara, prompted by an anonymous tip-off.

 

ARRESTED EMPLOYEE RELEASED ON BAIL

The raid adds to Indian challenges for the maker of Chivas Regal and Absolut Vodka, which is already facing antitrust cases and a high-profile case where authorities allege suspected violations of New Delhi's liquor regulations. Pernod denies any wrongdoing.

Reuters reported in 2024 that the company sacked at least six mid-level employees in Rajasthan after an internal investigation into alleged diversion of discount funds for personal use.

The state investigation officer in the ‌latest case, Dhola Ram Bishnoi, told Reuters the ​employee who was arrested had been released on bail, adding that the investigation into the case was ongoing. Many loose Ballantine's labels were also found in the raid.

"Labels cannot be separately given by the company to an employee. This is not allowed," ‍he said, adding the state plans to write to Pernod Ricard to gather more details that can aid its investigation.

Rajasthan's high-end heritage luxury hotels have hosted many ‍celebrity ‌events such as ​the wedding of Priyanka Chopra and Nick Jonas, while ‍pop star Dua Lipa spent New Year in Jaipur.

Pernod is one of India's biggest ‍liquor ‍players and competes ‌with Diageo in the alcohol market.

(Reporting by Arpan Chaturvedi abd Saurabh Sharma; Editing by Aditya Kalra and David Holmes)