Sell illegal cigarettes, sell up, or close down: Three choices facing Victorian tobacconists

Tobacco retailers are selling their shops en masse, terrified they’ll be torched if they don’t sell illegal cigarettes, as Victoria’s tobacco wars continue to rage. See the map.

The illegal tobacco war raging across Victoria is forcing tobacconists store owners to either sell up or deal in illegal cigarettes at discount prices as organised crime gangs continue to muscle into the market, a Herald Sun investigation has found.

More than 75 tobacco retailers have listed their businesses for sale, with the majority of the listings coming from metropolitan Melbourne, as tit-for-tat firebombings of tobacconist stores rock the suburbs.

Australian Association of Convenience Stores chief executive Theo Foukkare said he was “not surprised” tobacco store owners wanted to sell up.

“Tobacconists who are only operating in the legal market have been losing revenue,” Mr Foukkare said.

“Illegal cigarettes are going for as cheap at $13 a pack, where for legal retailers it is nearly $40.”

The aftermath of an arson attack on a Chapel St convenience store on June 6. Picture: Andrew Henshaw

Mr Foukkare said there had been a “perfect storm” for tobacco retailers with restrictions on the sale of vapes, pressure from illegal tobacco and the lack of a tobacco licensing system in Victoria.

“It’s a really difficult environment for these retailers to continue,” he said.

“They are losing revenue and labour and insurance costs are going through the roof.

“Legal businesses just cannot compete.”

Since March last year serious organised crime gangs have been involved in an illegal cigarette turf war resulting in more than 75 firebombings.

A Carlton tobacconist said he was selling his store to “avoid any trouble” with the organised crime gangs.

“I live in the back of my store,” the man, who was too terrified to provide his name, said.

“Every day I am fearful I will get a knock on my door that will end up in my shop being destroyed.

“I don’t want to be in danger, so it’s not worth it anymore.”

The owner said he had been attempting to sell his store for several months.

“It has been very hard to sell,” he said.

“People have seen the news, and I don’t want to be in this industry, why would anyone else?”

Police have made dozens of arrests in relation to the tobacco wars. Source: Victoria Police

A Victoria Police spokeswoman encouraged shop owners to continue to work with police to help stop the illicit tobacco trade.

“Assistance and information from store owners, staff, other shop owners and members of the community remains critically important to dismantling these syndicates,” she said.

“The intelligence they can provide may be crucial in preventing an arson attack or holding those involved in serious criminality to account.

“We encourage any store owners with information or other concerns to contact police.”

80 people involved in the illicit tobacco trade have been arrested since October last year.