Smuggling and Illegal Manufacturing

Smuggling and Illegal Manufacturing The Black market economy in beverage alcohol consists of primarily of the smuggling of spirits and illegal manufacturing of wine. Alcohol smuggling and illegal manufacturing have been growing in recent years and continue to grow exponentially. The illegal beverage alcohol market in Ontario is a multi-million dollar business with ties to organized crime. Criminals behind the illicit trade are professionals with sophisticated importation, manufacturing, distribution and sales networks. Profits from illegal …

…to individual consumers; and it is more profitable for owners of private stores to join the underground economy than to buy their merchandise legally. In the event of higher alcohol prices under privatization, the primary reason for black market activities will be reinforced. As a final point, law enforcement will become more difficult because of the increase in smuggling and the illegal manufacturing of alcoholic products and the increase in the number of retail outlets.