In the glittering world of high-end spirits, Pernod Ricard stands as a colossus, its brands like Absolut, Jameson, and Ricard synonymous with sophistication and conviviality. But behind the sparkly façade of corporate responsibility and sustainability lies a darker reality – a reality of legal battles, employee suffering, and ethical missteps that would make even the most hardened cynic raise an eyebrow.
Legal Quagmires in India
Let’s kick off with India, a market crucial to Pernod Ricard’s global ambitions. Here, the company’s been caught in a shitstorm of legal and regulatory nightmares. India’s Enforcement Directorate accused Pernod Ricard India (PRI) of illegally pocketing $23 million by feeding Delhi authorities bogus price info to jack up retail approvals. And that’s just the amuse-bouche.
They’re also alleged to have orchestrated a campaign with 4,000 emails to tilt New Delhi’s 2021 liquor policy towards privatisation, lining the pockets of private retailers. Then there’s the $24 million in corporate guarantees to HSBC for loans to retailers bidding for liquor licences – all to juice Pernod’s market share with prime stock placement. Internal docs even bragged about plans to “take control of retail shops” and build flagship stores, spitting in the face of Delhi’s Excise Policy. It’s a masterclass in corporate fuckery, and the fallout could see execs like Rajesh Mishra and Benoy Babu swapping their plush offices for a cell.
Pernod Ricard calls it all “factually incorrect,” but with a court date pending and potential fines or 3-7 year jail terms, they’re sweating. Toss in a $250 million tax dispute for undervaluing shipments and a stalled Delhi licence renewal, and their Indian dream’s a bloody nightmare.
A Toxic Drinking Culture
Back in France, the beating heart of Pernod Ricard’s empire, it’s a different kind of ugly. Former employees describe a workplace where the pressure to drink was as thick as the pastis fumes in a Marseille dive bar at last call. Sales staff were allegedly forced to knock back up to 12 glasses a day during promo gigs in bars, clubs, and even bullfighting festivals. One ex-salesman, Julien, had a breakdown so bad he landed in a psych ward. Another, Amélie, fought hallucinations and alcoholism.
Julien took it to the French labour court in 2019, claiming his job trashed his health – an expert backed him up, calling it a “certain, direct, and exclusive” link. Pernod Ricard shrugged it off, saying their code of conduct bans such bullshit. But the ghosts of those boozy days still haunt their HQ. This ain’t new either – back in 2011, they sued author Max Coder over his book Dealer Légal for calling out forced drinking. The Paris Court of Appeal sided with Coder, hinting there’s fire behind that smoke.
Marketing Missteps and Ethical Lapses
On the marketing front, Pernod Ricard’s tripped over its own feet more times than a pissed-up punter at a wedding. Their 2024 sponsorship deal with Paris Saint-Germain (PSG) was a clusterfuck from the off. Misread as involving Ricard, it pissed off Marseille fans over regional beef and ran afoul of France’s tight booze ad laws. They scrapped it, but not before showing how out-of-touch they can be.
Then there’s the Absolut Vodka ad from 2008 – a map of Mexico swallowing chunks of the U.S. with “In an Absolut World.” It lit up American outrage like a Molotov cocktail, with boycott calls louder than a tequila hangover. Tone-deaf doesn’t even cover it.
Ethically, they’ve got blood on their hands too. Until 2020, they bankrolled bullfighting in France – a brutal, outdated mess that’s got no place in the 21st century. Public backlash from groups like the Anti-Corrida Alliance forced them to ditch it, but the stench of that cash lingers.
Russia, Recalls, and Responsibility
In 2023, Pernod Ricard restarted exports to Russia, saying it was to shield staff from legal heat and stop black-market sales. Big mistake. Protests erupted in Sweden – Absolut’s turf – and Finnish firms called for boycotts. It was a PR shitshow that made them backpedal fast, proving profit sometimes bows to morals.
Even their products fuck up. In 2024, they recalled Skrewball Peanut Butter Whiskey in Australia over an undeclared sesame allergen. A sloppy oversight that could’ve screwed over allergic drinkers, it’s a red flag on their quality control.
They’ve got their shiny side – sustainability wins from the UN and CDP. But in a world of greenwashing, are they hiding more than they’re showing? It’s a tightrope act between truth and spin. Health-wise, they take the usual heat for flogging booze but push back with “Drink More Water” campaigns. CEO Alexandre Ricard bangs on about educating consumers to cut abuse, but does that wash away the industry’s sins?
The Verdict
So, what’s Pernod Ricard? A beacon of conviviality and green vibes, or a corporate titan drowning in legal muck and moral quicksand? It’s the messy middle. They’ve cleaned up some act – ditching bullfighting, pausing Russia exports, preaching responsible drinking. But the India fiasco and employee scars cast long shadows. Pernod Ricard’s the spirits game in a nutshell: intoxicating, tangled, and packing plenty of demons.
Lee Thompson – Founder, The Cummins Accountability Project
Sources:
- Reuters: Exclusive: Indian agency accuses Pernod Ricard of more policy violations
- The Guardian: Pernod Ricard staff allege firm’s ‘drinking culture’ made them ill
- The Drinks Business: Pernod Ricard drops PSG deal amid controversy
- The Drinks Business: Swedish politicians call for boycott of Pernod Ricard products
- The Shout: Product recall for some Skrewball Peanut Butter Whiskey
- Marketing Week: Pernod Ricard on ’empowering’ its marketers to communicate on sustainability
- Euractiv: Pernod Ricard CEO: Informed consumers will make healthier choices
- Campden FB: Pernod Ricard rebuffs criticism with growth, board revamp and acquisitions