Australian Association of Convenience Stores demands action on illegal tobacco

Legitimate convenience stores have slammed the state government for sitting on its hands while the tobacco wars that have swept across Melbourne march towards Sydney.

Fears the tobacco wars that have swept across Melbourne are on the brink of arriving in Sydney has led to calls for Premier Chris Minns to create a taskforce to get ahead of the problem, before it is too late.

The sale of illegal cigarettes and tobacco has exploded in Australia in recent years, with cost-of-living pressures leading smokers to go to the black-market varieties imported from Asia and sold under the counter at tobacconists.

But the growth in demand for illegal tobacco has also seen it become a popular income for organised crime gangs, resulting in violent turf wars in which underworld figures have been shot dead and more than 70 tobacconists firebombed in Victoria since 2023.

Theo Foukkare, director of the Australian Association of Convenience Stores, told The Daily Telegraph the same scenario will soon unfold on the streets of Sydney unless the NSW government invests in stopping the problem.

“I am 100 per cent confident the tobacco turf wars in Victoria are coming to NSW — it’s not a matter of are they going to come, it’s simply when are they going to arrive,” Mr Foukkare said.

The turf wars that have hit Melbourne tobacconists could be headed for Sydney. Picture: Andrew Henshaw

“I’ve told the NSW government previously that they need to move to a new licencing model and they need a dedicated taskforce, with trained people, to address this issue before it is too late. But we’re not seeing any action whatsoever in NSW and we’re continue seeing illegal stores open.

“So politicians can talk a big game, ‘we’re going to crack down on these people, they’re a scourge on society, they’ve got links to people with drugs and weapons’ … but nothing happens.”

Police seize 1.6 million black market cigarettes, worth an estimated $2.5 million, outside Dubbo last month. Picture: NSW Police

NSW Police have for some time been monitoring the temperature of the tobacco turf wars in Melbourne, and while the problem has been largely contained to the southern state, in the past few months there have been several large seizures of illegal tobacco in NSW.

One of the biggest was the seizure of 1.6 million black market cigarettes, worth an estimated $2.5 million, outside Dubbo in June.

There have also been firebombings, with a tobacconist at Taree destroyed by suspected arsonists.

Supporting the view the issue is no longer confined to Victoria was the setting alight of three tobacco stores in Brisbane on Wednesday and the recent announcement by the South Australian government of a $16 million investment to stopping the sale of illegal cigarettes and vapes.

Currently in NSW the role of cracking down on the sale of illegal tobacco and vapes falls to inspectors from NSW Health.

Australian Association of Convenience Stores director Theo Foukkare. Picture: Sam Ruttyn

However Mr Foukkare — who represents the interests of legitimate convenience stores like 7/11 — said his members had reported stores found to be selling illegal tobacco during raids, to be back doing so within hours.

“As a legal retailer, you’re doing everything in your power to play by the rules,” he said.

“But we know that when an illegal operator opens up in a close proximity, within a week those stores will see a 30 to 50 per cent drop in sales.

“If the illegal stores do get reported and then subsequently raided, and they get a fine, and the product is confiscated, sometimes they are back open and trading within two hours.

“That’s the worst case I’ve heard of, but generally it is within 24 hours.

“What’s incredible is this isn’t a hidden black market, it’s a visible black market.”

In a statement, a NSW government spokesperson said they would continue to have police and health officials work with federal agencies to target illegal tobacco.

“The NSW government in last year’s budget invested $25 million on tobacco and e-cigarette control,” the spokesperson said.

“The government remains committed to reducing the supply of illegal tobacco with enforcement and seizures undertaken on a regular basis.”

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