The rise in consumption of contraband tobacco is the main reason behind the rapid increase of C-store closures across Canada. In 2009, 1 out of 10 convenience stores closed. Most of the closures occurred in Quebec, Ontario and the Atlantic provinces.
Every closure represents another community location being deprived of a vital retail service not to mention the loss of jobs and the huge tax losses sustained by the government.
This serious, illegal underground economic enterprise is eating away at our core businesses with devastating effect.
The facts speak for themselves: contraband cigarettes account for nearly 50% of all cigarettes sold in Ontario, and nearly one-third of all tobacco sales in Canada - a 98% increase since 2006. Contraband cigarettes have become especially popular among Canadian youth as they have easy access to the cheap tobacco. CCSA has studied the alarming occurrence of contraband tobacco at Canadian high schools for the past three years, and by their “butt studies” it is obvious that the distribution of illegal tobacco products is on the rise with youth. Contraband tobacco undermines the efforts of responsible retailers.
The OCSA Members have achieved a nearly 95% success rate in preventing minors from purchasing legitimate tobacco related products due to diligence put forth by store owners and employees with the We Expect ID program active in over 7,500 stores across Ontario. Our mission there is to never sell age-restricted products to minors. That includes ALL age restricted products in accordance with the law.
The contraband tobacco issue is getting worse. RCMP law enforcement reports indicate that over 100 different organized crime groups are involved in the smuggling and sale of illegal cigarettes. Police investigations find that the same criminal organizations that are involved in contraband tobacco are using the profits to smuggle other illegal products such as drugs and guns across the border into Canada.
The study on cigarette butts, as well as information on the campaign to reduce contraband to 10% can be found on www.10-2010contrabandobjective.com. Here you will find 10 Actions that you can encourage your local MP to take to fight contraband consumption in your area. The CCSA believes that if smuggling is reduced to 10 per cent, there will no longer be enough of a market to sustain the illegal trade.
CCSA is an active member of the National Coalition Against Contraband Tobacco.
CCSA and Contraband Tobacco in the Media
Click here for a selection of media coverage received from across Canada.
Contraband cigarette sales continue to rise. How are C-Stores dealing with this serious issue? On April 28, 2010 BNN spoke with Steve Tennant, CCSA Vice President. View interview: click here .
Focusing on the Female Perspective in C-stores
