Victorian retailers warned to dump tobacco as crime wave explodes
Victorian retailers have been urged to take a financial hit and pull tobacco products from their shelves in a bid to keep themselves safe as stores continue to be plagued by armed robberies.
Retailers have been warned the safest thing for their businesses and employees is to take a massive financial hit and totally remove tobacco from their shelves.
Rohan Pike, a crime consultant and former AFP detective, asked retailers at a conference in Melbourne on Friday morning whether the escalating cost of insurance, “constant” threat of robberies, falling sales and the cost of tobacco licences was “worth your substantial investment”.
“It would be difficult to let go of an income source that is underpinning much of your business for many years.”
“But in the current environment, with the health and safety of yourselves and employees as your priority de-stocking tobacco is probably the best preventive measure you could take.”
Mr Pike said that government policies had driven the growth of the illicit tobacco market, with the cost of cigarettes forcing “otherwise largely law-abiding citizens” into black markets — and leaving legal sellers holding the bag.
“With no significant government policy changes in sight, I would not be surprised if legitimate shopkeepers were considering whether there was any value in stopping tobacco in their stores.”
The warning was made at the Independent Retail Crime & Safety Forum hosted by Master Grocers Australia, which was held to bring together retailers, police and government to discuss the escalating retail crime crisis — including extortion, violence, and the illicit tobacco trade.
The same morning as the conference two teenagers were arrested over a string of cigarette burglaries and robberies across Melbourne.
Police arrested the 18-year-old and 16-year-old over five incidents at convenience stores and cigarette stores in mid-November, with cigarettes and vapes “frequently targeted” during the raids.
Shadow Police Minister David Southwick spoke at the conference and warned that on the current trajectory “we won’t have a legal tobacco industry in Australia” unless there were drastic changes.
“For you to be able to say that it’s safer to actually not sell tobacco in a regulated manner, than to actually do it and threaten your lives is surrendering to the crooks to the gangs.
“That is what these government has allowed to happen — state and federal.”
He urged a crackdown on organised crime activity, telling the audience that “crime does pay” and called for the government to “follow the money”.
“These kids were sent out to go out and commit crime.
“Follow the money and see where the people that are calling the shots, the Middle Eastern gangs that are running it and making a lot more money.”
A Victorian government spokesperson said the government was implementing tough laws to “smoke out the illegal tobacco trade”.
“Tobacco Licensing Victoria continues to assess licence applications ahead of the 1 February 2026 deadline when all licensed businesses will appear on a public register and businesses caught selling illicit tobacco can face fines of up to $1.8m or jail time.”
A licensing scheme will start in Victoria from February 1 2026, with new inspectors ready to start work by that date.
The inspectors will have the power to seize any illicit tobacco they find and sellers will face fines of up to $350,000 or up to 15 years in jail for an individual, and fines of up to $1.8 million for businesses.
