Contraband Tobacco Plagues Western Canadian C-Stores

Western Convenience Store Association study reveals that illegal tobacco is on the rise in Alberta and Manitoba, while rates are the lowest in Saskatchewan.

November 07, 2016

VANCOUVER, BC – The Western Convenience Store Association released findings from its 2016 Contraband Studies, which examined discarded cigarette butts in Alberta, Saskatchewan and Manitoba to determine if illegal (contraband) cigarettes were being purchased and smoked.

The study found that illegal tobacco is on the rise in Alberta, with the average rate of illegal tobacco use at tested sites reaching 12.3%, a big jump from 9.8% in 2015.

“Two things have happened in Alberta since last year,” said Andrew Klukas, WCSA president. “First, Alberta’s economy is in recession. Second, the Government of Alberta increased tobacco taxes by $10 per carton in 2015: by $5.00 in March and another $5.00 in October. Alberta now has an environment where smokers are actively seeking cheaper tobacco products and products that the government restricted access to, such as menthol cigarettes. It’s the perfect recipe for illegal tobacco sellers.”

In Manitoba, convenience store retailers are deeply concerned following the release of a study which shows the rate of illegal tobacco in communities across the province is growing. The average rate of illegal tobacco use at sites tested across Manitoba was 14.7%, suggesting illegal cigarettes are widely available across the province. The illegal tobacco rate in 2015 was 12.7%.

“Illegal tobacco is once again a growing problem in Manitoba,” said Klukas, adding that illegal tobacco “is easily accessible at schools and in communities across the province.”

In Saskatchewan, the news is a bit more encouraging. The WCSA study found that the province has the lowest rate of illegal tobacco in western Canada.

“Saskatchewan has a relatively low tobacco tax rate and it does not regulate flavored tobacco,” said Klukas. “We believe these two factors keep the illegal tobacco rate lower in Saskatchewan than in other western provinces.” He added that Saskatchewan’s “clear regulatory, tax and enforcement frameworks are easy for retailers and consumers to understand. This simple approach makes buying illegal cigarettes less appealing.”

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