After Apple was fined $38 billion, a French wine and spirits giant fell into the same trap and was fined $600 million by India.

By Wang Xinxǐ Following Apple’s $38 billion fine, it is now the turn of the French wine and spirits giant. After turning India into its largest single market globally, the ‘pig-slaughtering scheme’—a term used locally to describe sudden, heavy regulatory penalties—has finally landed on Pernod Ricard, the French酒业 giant behind Chivas Regal, Absolut Vodka, Royal Salute, and The Glenlivet. According to a Reuters report, court documents filed with the Delhi High Court at the end of May 2026 revealed that Indian tax authorities demanded the company pay approximately $314 million (nearly ₹30 billion) in back import duties. If it loses the case, the total penalty could exceed $600 million. This sum amounts to roughly three times Pernod Ricard’s annual profit. Moreover, India has recently launched an antitrust investigation against the spirits giant. Given Apple’s $38 billion antitrust fine in India, Pernod Ricard’s $600 million penalty may only be the beginning—larger fines could follow. Pernod Ricard’s troubles were sown over a decade ago. India is a country with high tariffs and a complex tax regime. Multinational corporations entering India often resort to related-party transactions to reduce tax liabilities. Domestic Indian distillation technology lags, and low-end alcoholic beverages suffer from poor quality; the premium market is entirely dominated by imported whiskies. To protect its domestic liquor industry, India imposes some of the world’s highest punitive tariffs on imported spirits—up to 150%. As a result, importing finished products fully compliant with tariff obligations leaves virtually no room for profit. All foreign liquor companies—including Pernod Ricard and Diageo—adopt a uniform model in India: importing semi-finished products and bottling them locally. Specifically, they import whisky concentrate (‘new make spirit’ or bulk concentrate) from their overseas parent factories, then blend, bottle, and sell in India. This model is legal per se. However, Pernod Ricard’s Indian subsidiary purchases whisky concentrate from its UK-based subsidiary Chivas Brothers—and sets the internal transfer price unilaterally. According to Indian authorities, the company uses internal codes instead of disclosing objective information such as age statements, malt grades, maturation methods, and quality classifications for the imported concentrates. During subsequent verification and evidence collection, Indian investigators found that Pernod Ricard’s declared import prices were 67.5% lower than fair market value. The lower the declared import value, the less duty payable. Hence, the $600 million penalty comprises unpaid duties accrued over more than a decade, plus interest and penalties for non-compliance. Clearly, India had been keeping meticulous records—and waited for the right moment to levy a massive fine. As early as 2022, Reuters reported that Indian customs had issued Pernod Ricard a tax warning amounting to approximately $244 million. At the time, Pernod Ricard announced it would halt all new investments in India and even sent a direct letter to Prime Minister Modi via media channels, warning that tax disputes were impeding new investment. Thereafter, not until the second half of 2025 did Indian investigative agencies conclude—in September—that Pernod Ricard had “deliberately complicated” its reporting information. A government court filing dated January 24, 2026 further accused the company of failing to disclose the age, composition, and specific ingredients of bulk Scotch whisky concentrate imported from its UK subsidiary Chivas Brothers. Pernod Ricard was alleged to have undervalued these imported concentrates by approximately 67.49%.

Chobani invests in expanding its coffee factory; Wanchen Group responds to the expiration of its IPO prospectus.

- IPO Update - Wanchen Group Responds to Expiration of Its Hong Kong IPO Prospectus Recently, Wanchen Group—the A-share-listed “first listed discount snack retailer” behind the popular brand Haoxianglai—filed its Hong Kong Main Board IPO prospectus on September 23, 2025. That document has now officially expired. Yesterday, Wanchen Group’s Securities Department responded: “Our Hong Kong IPO remains ongoing. Following the expiration of the prospectus, the application has not yet been accepted. Should we make further progress, we will announce it publicly.” (Xiao Xiang Morning News) Editor’s Note: As the first A-share-listed discount snack retailer, Wanchen’s Hong Kong listing aims to broaden financing channels and enhance international visibility—supporting its ‘10,000-store race’ against competitor Mingming Huan. Yet the prospectus’ expiration reflects either intensified regulatory scrutiny or shifting market conditions, requiring updated financial data and business progress before resubmission. - Brand Updates - Danone Establishes Dairy Joint Venture in Argentina Danone Group recently announced the formation of a joint venture in Argentina with confectionery manufacturer Arcor Group, targeting growth potential in high-margin dairy categories and improved operational efficiency. The JV integrates Danone Argentina’s dairy business with Mastellone Hermanos’ dairy operations—including flagship brand La Serenisima—and its logistics arm, Logística La Serenisima. The combined business will be jointly controlled by Danone and Arcor Group, with goals to accelerate innovation, expand market coverage, and drive development across high-value dairy categories including cheese, butter, cream, yogurt, and desserts. (DairyReporter) Editor’s Note: This move unlocks growth potential in high-margin categories, leveraging Arcor’s local distribution networks and brand recognition to accelerate market penetration while improving operational efficiency. For Danone, the asset-light model reduces investment risk in South America, allowing focus on higher-value-added products. Diageo Sells Stake in Cricket Team Diageo recently announced that its Indian subsidiary, United Spirits, plans to divest its 100% ownership of Royal Challengers Sports Private Limited for ₹166.6 billion (approximately RMB 12.226 billion). The entity operates men’s and women’s cricket teams in India. The transaction requires approval from the Board of Control for Cricket in India (BCCI) and other relevant regulators. The buyer consortium includes Blackstone’s Permanent Capital Partners, German venture capital firm Bolt Ventures, and India’s Aditya Birla Group and The Times of India Group. If distributed as a special cash dividend, Diageo’s 55.9% stake would yield proceeds slightly exceeding $1 billion. (Wall Street Journal, Bloomberg) Editor’s Note: This marks Diageo’s complete exit from sports-related assets, refocusing squarely on its core spirits business. Proceeds will be used for debt repayment and shareholder returns. The buyer consortium intends to leverage the IPL’s massive traffic and brand exposure to explore synergistic business models integrating sports and consumer goods. EssilorLuxottica and Dolce & Gabbana Extend Eyewear Licensing Agreement to 2050 Global eyewear leader EssilorLuxottica and Italian luxury brand Dolce & Gabbana recently announced the extension of their existing eyewear licensing agreement through 2050. The two parties will continue collaborating on the development, manufacturing, and global distribution of eyewear products.

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