During his opening remarks at the Atlantic Forum on Contraband Tobacco in Moncton Tuesday, New Brunswick’s minister of Public Safety said illegal tobacco doesn’t make the headlines the way the fentanyl crisis or copper wire theft does.
“But it’s a serious problem in New Brunswick,” said Robert Gauvin. “There’s money in it for organized crime and they know it.”
The two-day conference brings together public, private and government sectors to discuss the magnitude of the issue and to try to find solutions to fight it.
According to the Department of Justice and Public Safety, more than 3.4 million illegal cigarettes destined for the New Brunswick market were seized in 2023-2024.
That represents a provincial tax value of more than $830,000.
In 2024-2025, more than 2.1 million illegal cigarettes were seized, representing a provincial tax value of more than $536,000.
“The impact of this crime is significant,” said Gauvin. “It cuts provincial revenue, it hurts small businesses and hampers provincially funded smoking cessation programs.”
Mike Hammoud, vice president, Atlantic Canada for the Convenience Industry Council of Canada (CICC), also called it a significant problem in the region.
“Based on recent information that we’ve received, New Brunswick is actually leading the way,” said Hammoud.
A recent report commissioned by the CICC states contraband tobacco likely accounted for 52 per cent of the sales in New Brunswick and 38.4 percent in Nova Scotia in 2023.
The report estimates the provincial tobacco tax revenue loss may have been over $42 million in New Brunswick and $54 million in Nova Scotia for the same year.
Danny Fournier is the manager of illicit trade prevention at Rothmans Benson and Hedges and a former Quebec provincial police officer who spent decades fighting illicit trade.
Fournier said most people don’t realize illegal tobacco distribution networks are led by organized crime.
“Organized crime does not care about the commodity. If there is money to be made on any commodity, they will get to that business and contraband tobacco is not any different than drugs or other commodities,” said Fournier.
He said New Brunswick does not produce contraband cigarettes, but in order to get the finished product in the province, a solid distribution network run by a serious criminal organization with deep pockets is needed.
“Keep in mind every time organized crime gets involved in the trafficking of any commodity, they always bring violence to our communities. They always have, they always will. That won’t change. That’s their business model, if you will,” said Fournier.
Hammoud is encouraged with steps the government is taking to put a dent in the black market.
“We know that they’ve got a pretty good task force that’s trying to combat this. Our ask would be to maybe give them some more resources so that they can take a bigger role and try to figure out a way to fight this. It’s had very, very negative impacts on not just retailers, but communities as well,” said Hammoud.
Fournier said there’s no silver bullet to stop black market tobacco, vaping products and cannabis because tackling the supply chain is difficult, but he’s encouraged by the progress he’s seen by law enforcement and government in New Brunswick.
For Gauvin, there’s a simple solution to curbing the problem.
“Stop buying contraband cigarettes,” said Gauvin. “If we encourage illegal activity, you get more illegal activity.”
For more New Brunswick news, visit our dedicated provincial page.
