Why Aren't There Any Black Market Alcohol Shops Like There Are Cigarette Shops?

Black market imported cigarettes and tobacco are easily purchased at many shops for much less than legit tobacco as the price of legit ciggies has risen to the point that few can afford them.

With the alcohol excise increasing every year as well as Australia being one of the most expensive countries to buy alcohol in why aren't there shops around that sell home brewed beer or home distilled spirits.

I'd imagine there would be a massive market for cheaper beer and spirits.

Sure you can brew or distill your own, but you could also grow a plant in your backyard.

Raising the prices so that few people can legally obtain these items is clearly not working and the government is missing out on the GST from sales of legit products.

Comments

  • +8

    Are you the fuzz?

    Are you sure they don't exist?

    • +1

      Maybe you got lucky or I'm just not in the know…only been able to purchase the specified goods from mates of mates that occasionally distill a batch.

  • +2

    So you can buy methanol from them that tastes like Vodka?

    • +4

      That's the point.

      If alcohol price keeps going up people are going to look for alternative means to acquire it which may not meet health and safety standards.

      • -1

        which may not meet health and safety standards.

        Alcohol is classified as a Class 1 carcinogen. Is this the health and safety standard you're referring to?

        • +3

          Yes, and so is diesel exhaust. To which innocent people are forced to breathe the carcinogenic nano particles. The ceramic filters don't help with this. This has to be one of the best kept secrets for the last 40 years. Lets put 80% tax on all diesels and all their fuel and parts.

          • +1

            @Universal Constant: You haven't thought this one through. How has every item in your home including the home itself been brought there?

          • @Universal Constant:

            Lets put 80% tax on all diesels and all their fuel and parts

            Just increase everything but the wages by 79% and ban diesel :)

      • -1

        Or reduce/ stop drinking?

  • +6

    the government is missing out on the GST from sales of legit products.

    They're collecting more alcohol excise instead of more GST. And they're saving money on Medicare by avoiding paying for excessive numbers of liver disease treatments.

    • +1

      Yes, until the price gets too high.

      At that point people won't just quit they will go to the black market which will cause more medical issues buying alcohol from inexperienced distillers that just want to make a quick buck and have no regard for safety.

      • -1

        Sounds to me like they have it just about right atm, if OP is right that there isn't much of a black market.

        Whereas maybe they went too far with tobacco.
        However, Australia seems to have a better handle on smoking than most, so I'm happy with tobacco regulations too.

        Personally, I think the average decent citizen isn't going to risk drinking methanol, so they can follow the tobacco regulation model.

        • +1

          At the moment there isn't much need for a black market just as 10 years ago not many people were buying imported tabaco compared to today.

          • @BGK: Yeah, and like has been said here so many times, never likely to be.

            There might be a time in the future where there is a black market with quality controls so you're not risking your life to save some $$, but alcohol would have to get awfully expensive before I see that happening.

  • +1

    You're in Adelaide? There'll be an alleyway nearby with a cockfighting arena, unlicensed gambling house and crack den. You can get moonshine by the shot.

    • -2

      Participated in a few cock fights but they had nothing to do with poultry.

      • -2
        • Guess I'm not quitting my day job to become a stand up comedian then…

  • +6

    I wonder if it is because people aren’t really that brand loyal to their cigarettes, so as long as it has nicotine - that’ll do.

    Where as, if someone said, if you don’t want Jack Daniel’s, I can get you some Mack Baniel’s, people would rather pay for the brand.

    Especially in the current climate where those girls passed away from the ethanol/methanol? poisoning.

    • That's a fair point, brand loyalty would likely play a part.

      However is surely a demographic that would buy knockoff Jam Bim if it were at least 25% cheaper than store bought.

      • Jim Beam IS the cheap crap..

    • +6

      Nobody ever died from smoking chop-chop. OK millions died a slow, painful death. Just not immediately, so they don't care?

    • +1

      When I was a smoker, i was loyal to a brand and could taste the difference.

    • JD is going up in price in Canada.

  • how to sell whiskey? i have two bottles (unopen of course) cant sell on ebay…. :(

    • +2

      If you're selling it for cheaper than retail it might be best to ask a mate if they're interested.

      If it's a vintage or collectible whiskey maybe take a look at an auction site that has a liquor license.

    • Auction houses take alcohol. Expect to pay some hefty fees though.

  • +10

    People who are addicted to alcohol already have plenty of ways to acquire it for cheap, can get 4L of 10% cask wine/goon for $10 at most stores, or $35 for a 700ml bottle of cheap vodka or whiskey. Or the cheap hand sanitiser at Bunnings if you're that far gone.

    Hard to make much profit on cheap black market alcohol given the crappy stuff is already cheap, perhaps counterfeiting expensive brands alcohol would be though.

    No such alternatives for cigarettes, so the black market thrives. Much easier to smuggle as well.

    • Actual logical answer. Nice work

  • +2

    I have also been thinking it would go this way. I guess you can already brew your own beer and ferment other things legally, tobacco cannot be grown legally.
    This is a stupid tax, it's already hit the spot where it is only for the rich. Prohibition didn't work 100 years ago, pricing people out of something just gives crims a decent wage.

    • +4

      They only have to look at what happened when they did a 'soft ban' on vaping.

  • +1

    Fortified wine is very cheap considering the alcohol content. You can get a 750ml 16% bottle for as little as $5, I'd spend a bit more and get one that doesn't give you a bad hangover.

    If you don't mind a salty drink then cooking wine is even cheaper, I've seen a bottle of 29% for $3. Totally undrinkable, although I'm sure there's a way.

    • If you're in a pinch that will do, however if you want something that tastes halfway decent that just doesn't cut the mustard.

      • +2

        Home brew is good option if you like beer and have the time/skill/patience.

        • Home-brew is a fair bit cheaper. The coopers kits work out to roughly $35 for 23L of beer.

  • When I was a young'un, a few shops (e.g. "Re" store) legally sold "Hoyts essence" for $5/bottle.
    It was 80% ethanol, 375ml or so, equivalent to a full bottle of spirits. Flavours included raspberry, peppermint, almond, vodka, rum, brandy, …
    It went on for years, in plain sight. I had a full cocktail cabinet.

    Actually they still exist, but only 50ml bottles ;-( https://hoytsfood.com.au/essences/

    • +1

      the president of the Science Students club at uni had drunk these at high school.
      he wanted to run events at uni for the club with as low budget as possible.

      Mexican / Taco Tuesday involved buying as many "tequila" Hoyts bottles as we could find, clearing out all the shops for miles around campus, and mixing / bottling them in his mums kitchen the night before. I also refused to eat whatever they were passing off as tacos.

      Pretty sure they also ran another event using "vodka" but I don't recall the theme for that one.

  • +2

    Ive seen some real alcoholics, they are disproportionately in liver and multi organ failure compared to most.

    Alcohol is cheap enough. You can get metho and sprite, or something more palatable 2-3 goon bags a day. The cheapest kind. You do not need to get illicit kind when the legal ones are plenty and cheap. $12 for 5L, cheaper than some bottled water

    • Isn't there a bittering agent added to metho though to discourage drinking it? I don't think sprite would hide that taste.

    • Cheap wine exists but there is no cheap alternative for spirits or beer apart from home brew.

      • by the time they reach that point they switch from beer or spirits, to wine. its a lifestyle choice.

  • +6

    You're out there somewhere, Beer Baron! and I'll find you!

    • +12

      ⁿᵒ ʸᵒᵘ ʷᵒⁿ'ᵗ

  • +3

    Smokes concentrate a lot of money into a small mass and volume. They're easy to move for the money they can fetch.

  • +1

    Brewcraft will sell everything you need to make your own spirits. You just can't buy it all at once, so they need to ring it up in different transactions. It's easier to just buy it though than still your own. You do get a lot more popular when you can sell people cheap spirits. But there's a danger of methanol poisoning if you're not careful so there's a chance of prison.

  • +1

    Cigarettes from overseas are very easy to get into the country. They’re small so it’s easy to get enough quantity to sell at your tobacco store. Try that with alcohol. You’d need to smuggle in pallets worth somehow to make it worth it, as your odd bottle here and there isn’t going to cut it.

  • +1

    There is no need. Ive seen bottles of wine for $3 and boxes of wine for $10.

    Also making your own booze is legal and simple. Growing tobacco and making your own cigarettes is a long difficult process which is illegal.

    • Maling spirits is ilegal without a license, however you do have to pay excise tax on what you make.

      • do you have to pay excise tax on what you make

        Even for personal consumption?

  • I think cheap alcohol (cask wine, port, $30 vodka, etc) is still well within people's budgets. Cigarettes not so much

  • +1

    Make way more money in tobacco as it's very light to ship and bikies are organised.

  • -1

    Gotta save cash when deleting a liver. Dodgy backyard moonshine is the quickest way.

    • Well this is Ozbargain.

      • -1

        Did not go well for those 2 girls in SE Asia recently.

  • +1

    why aren't there shops around that sell home brewed beer or home distilled spirits.

    Good try ATO/cops!

    Well they dont advertise themselves for a reason.

  • +2

    I've never met a drunk that knows how to keep their mouth shut.

  • Black Market Alcohol and tobacco have always existed, even back in the 80's and 90's when a pack of cigarettes wasn't insanely expensive. people will always search for cheaper even if the tax is relatively low it is always too much.

    • back in the 80's and 90's

      at one point I ran a small Tobacco ring.
      the boys in the bottle-o were tasked with using the cigarette machine for drive-through customers.
      it was an old run-down machine. we worked out if you pushed the button just right you could get a pack of ciggies and not get charged.

      put in twenty, push button carefully, get winnie blues, get twenty back.

      i got so good at it, one time i got seven packs, for twenty bucks.
      we were selling packs to locals in the public bar for half price.
      told the boss, he didn't care, it wasn't his machine. he just wanted a share of the profits.

  • obvious answer: poisoning
    creative answer: yOu Have tO teLl mE if yOurE a cOp. swEar oN the bibLe!

    • If you ask a cop if he’s a cop then he has to tell you. It’s in the Constitution.

  • +2

    Alcohol isn't really that expensive. What's expensive is drinking alcohol at a licensed venue.

    • And some of the staff were STILL not paid for hours worked correctly.

      Plenty of venues manage OK strangely.

  • goonbags are cheap even with tax…people on welfare can afford them. seems like a lot to risk to making a few bucks with home made moonshine and ending up with manslaughter charges, even if you can find someone stupid enough to buy them

  • Probably because you can buy cheap alcohol legitimately whereas all legit ciggas are an absolute ripoff. A pack of 25 that cost $7 25 years ago is now almost $60.

  • Brother, just drink Rakija!

  • -1

    Eighteen cents a pack of ten, for smokes when I was 15. Two cents for a box of matches.

    • I remember when you used to be able to get a Hershey for a nickel!

      • eldest brother carried twenty cents emergency money traveling to school alone when he was five.
        one day the older kids told him school was cancelled while they were waiting for the train.
        he believed them and on the way home he spent his emergency money on a large bag of dims sims. (6 or 8?)

  • You gotta have mates that have a hobby still.

    Someone I knew had a still while in uni, made out of a 50L beer keg with a residental hot water system element threaded in. Full on fractioning still, had the temp probe in the column & controlled it with an arduino & relays. Was pushing the edges of what you could do without dessicants/wacky lab grade stuff.

    Problem is it takes effort to do right so if you are poor enough to want cheap booze you end up just buying goon bags instead. Plus the cleaning. You are constantly cleaning everything. Its a huge PITA. There would be enough margin to do black market booze if you were competing only against spirits, but you are competing against goon.

    Its a niche for the kind of people who run a still for fun or are poor for now like uni students.

    • i waiting for my chemical engineer mate to finally retire so he gets serious about his plan to make vodka.

  • lots of home brew beer kits around cost about $1 litre the batch i made so about 40c stubby, coopers even sell kits in supermarkets, not sure at that price how much of a market exists for black market beer, beer ….. black market beer for 30c stubby vs 40c legal home brewed ? doubt black market can make if for 30c a stubby due to cost of the barley.

  • cole and woolie have been removing coopers beers and other kits around my area.

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