EXCLUSIVE — A C-Store Owner Denounces The Resurgence Of Contraband Tobacco In Quebec

Owner of a well-known depanneur founded by his grandfather and located in Montreal’s Hochelaga-Maisonneuve district, Daniel Simard, of the famous Biscuiterie Oscar, does not mince words.

In his eyes, the issue of contraband tobacco persists. Worse, it is growing back again. And all this, while politicians, governments and authorities consider the problem largely solved and no longer care about it.

Recognized as an engaged retailer who often calls, gets involved and pushes retailer associations to increase pressure, he accepted this time to share openly his true feelings and thoughts to DepQuébec on the issue.

So without further due, here is the heartfelt interview conducted last Friday with Daniel Simard, a direct, honest and courageous c-store owner who basically dares to voice loudly what many others truly believe.

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DepQuébec : Daniel Simard, thank you for granting us this interview.

Contraband tobacco still exists, of course, but you will agree that it has declined significantly since 2008. It is estimated that it has gone from 40% to only 15% of the market today. For most politicians, the media and people in general, the problem is largely solved, namely through very high fines and penalties. But it is true that we still see a lot of seizures and arrests. Do you agree with this analysis?

Daniel Simard: Yes, there has been a lot of good things done since 1994, when retailers sold cigarettes on the street at some point to protest widespread contraband. Governments reacted by lowering taxes but several years later, they began raising them again.

In 2004, contraband tobacco resumed and retailers once again sounded the alarm to the government: they rallied and said loudly: “Hey, look, contraband is back again! Wake up!”

At some point, for a decade or so, there used to be a committee where the authorities, retailers and the government sat down together to deal with the problem, but all of that is gone.

Since 2004, retailer associations have done their job and they have been listened to by MNAs and ministers: we felt things were moving forward. Indeed, we have seen tougher laws adopted, fines increased, things like that – a lot of good things. But: there has always been a 10-15% contraband floor that remained and kept tolerated: it never got below this level.

And then, here we are in 2018 and sorry to say, but it is no longer 10-15%, it has become much more than that. I can tell you that for the past two or three years, the level of contraband tobacco has risen quite a lot in Quebec.

This year, I am down 15% from the previous year, which was down 20% from the year before, which was down 15% from the previous year.

“And still, it is up to us, retailers, to stand up for our rights and press the government to tackle this problem for the umpteenth time.” – Daniel Simard

DepQuébec: How do you know that contraband is behind weaker sales, and not other factors such as a decrease in smoking or the popularity of vaping, for instance?

Daniel Simard: Because I see it! It is all around us.

I have a customer the other day who came into my store to buy lottery and threw his pack of Native cigarettes into my garbage can!

I crossed a lady at a shop entrance – a homeless woman who opens the door to clients while asking for money – with a pack of Native cigarettes in her hand.

And there has not been 15% fewer smokers each year for the past three years, that’s not true.

We end up with the same problem all over again. We still face contraband tobacco, there are more and more of it and our sales are dropping significantly. 

“There is no magic solution: it just takes more forceful interventions from the police and the government, period.” – Daniel Simard

DepQuébec: Exactly, so what do you think governments should do from now on?

Daniel Simard: I know some retailers’ associations have approached MNAs recently and they felt no real interest from them. I ask that the government and the authorities take control of the situation and reduce contraband agressively in both Quebec and Ontario.

Yes, I understand that aboriginal people have the right to produce and consume tobacco.

But the only thing that has not been done yet and needs to be done is tackling distribution networks in Quebec and Ontario, starting by targeting the flow of vehicles coming out from Native reserves.

I’d like to see highly mediatized police arrests nearby and around Native reserves, in Quebec and Ontario – to show the public that contraband is not tolerated, put a stop to that illegal trade and restabilize the market .

“That’s what I’d like the police to do: highly mediatized arrests and seizures of vehicules coming out of Native reserves with contraband.” – Daniel Simard

DepQuébec: You seem quite fed up with the situation…

Daniel Simard: Politicians no longer listen to tobacco manufacturers, retailer associations, to the industry as a whole.

Small independent retailers like me are left to suffer.

And if plain packaging is implemented, the situation will get even worse because it will become quite easy to imitate legal products.

Yet, we do sell a legal product. We do a great job at keeping minors away from tobacco and at collecting and remitting all the taxes: I don’t see why we shouldn’t get more support from them.

DepQuébec: There are still a lot of fines, arrests and seizures going on right now.

Daniel Simard: There are lots of seizures by the authorities, yes, and they are very happy and proud to brag about them, but we all know that the more they seize, the more there are.

If they grab a piece of it, it’s absolutely certain that there are many, if not a lot more.

“Once again, we retailers are the ones raising a flag and telling them what to do.” – Daniel Simard

DepQuébec: What would you say to Premier Philippe Couillard if in a same room with him?

Daniel Simard: Is it now up to us, c-store retailers, to enforce the laws instead of the police?

Should I arrest someone with contraband myself?

“What are you waiting for to enforce the legislation?” – Daniel Simard

DepQuébec: In closing, why this heartfelt testimonial and why now? We seldom see a c-store retailer opening his heart like you just did on such a controversial issue.

Daniel Simard: Because I am the third generation of Simards owning and managing the Biscuiterie Oscar.

Three generations in our family so far, and my son is now interested in taking over.

I would like to leave him, as much as possible, a fair and levelled business environment where he can compete on equal terms.

And I’m pretty happy that the government has decided to legalize cannabis and sell it itself, because it will now see what it is like to face a strong illegal market.

“I hope they will grant us, retailers, the same means they will probably grant themselves to remove cannabis from the hands of organized crime.” – Daniel Simard

DepQuébec: Daniel Simard, thank you very much for your inspiring and courageous message.

Biscuiterie Oscar is located in the heart of the Hochelaga-Maisonneuve district, in Montreal (on the right side of the photo: click to explore the area)