JOINT PROVINCIAL EFFORTS SET NEW STANDARD IN FIGHT AGAINST CONTRABAND TOBACCO: IMPERIAL TOBACCO CANADA COMMENDS ONTARIO AND ALBERTA'S LEADERSHIP

MONTREAL, Nov. 27, 2025 /CNW/ - Imperial Tobacco Canada (Imperial) congratulates the governments of Ontario and Alberta for their decisive action against contraband tobacco, reinforcing their commitment to public safety and the protection of government revenues.

Contraband tobacco continues to undermine public safety and drain government revenues nationwide. In Ontario, illicit tobacco accounts for nearly 40% of the market, translating to an estimated $557 million in annual lost tobacco tax revenue--more than half a billion dollars that could otherwise support essential public services. In Alberta, nearly 30% of the market is illegal, resulting in $185 million in lost tax revenue.

Beyond fiscal losses, law enforcement agencies frequently report that illegal tobacco busts are linked to organized crime. The RCMP estimates that 175 organized crime groups are involved in the contraband tobacco trade, often using profits to fund other criminal activities. Seizures frequently include cocaine, fentanyl, and weapons, underscoring the broader threats associated with this illegal market.

"Ontario and Alberta have shown real leadership in tackling contraband tobacco," said Eric Gagnon, Vice President, Corporate and Regulatory Affairs at Imperial Tobacco Canada. "These measures are critical to protecting communities and reducing the influence of organized crime. Imperial is committed to working closely with governments, law enforcement, and stakeholders to deliver effective, long-term solutions."

Imperial is encouraged by tangible steps taken in both provinces, including:

• Alberta's introduction of two new administrative penalties under the Tobacco Tax Act targeting the purchase, storage, and sale of contraband tobacco – a major step forward creating real consequences for illegal operators and closing enforcement gaps.
• Alberta's move to require all enforcement agencies to report seizures of illegal tobacco, ensuring consistent provincial data collection and enabling more strategic, intelligence-driven enforcement.
• Ontario's continued commitment to enforcement and policy consultation, including exploring collaborations with law enforcement, stakeholders, and First Nations partners, and reviewing authorities and potential amendments to support police officers with the training and education needed for timely and legally sound roadside searches for suspected contraband tobacco.

Federal Leadership Is Needed Now

Unfortunately, these efforts will continue to be undermined by a Federal Government that has been silent on illicit tobacco since 2015, despite it being one of the most lucrative organized crime activities in Canada.

Both provinces have demanded federal action, particularly around online sales of contraband tobacco, but also other products like vapes and nicotine pouches. These are issues provinces cannot effectively address alone because of jurisdictional limits. The Federal Government must take a leadership role; continued inaction is costing provinces hundreds of millions in lost revenue and fueling unsafe communities across the country.

"Provinces are doing their part, but Ottawa must step up and enforce existing laws--not just on tobacco, but also on vapes and nicotine pouches. Canadians deserve better protection from the negative impacts caused by the illegal market," concluded M. Gagnon.

About Imperial Tobacco Canada

Imperial Tobacco Canada is the leading tobacco and nicotine company in Canada, part of the global BAT group. Our mission at BAT is to create A Better Tomorrow™ by promoting a Smokeless World. We envision a future where smokeless products replace cigarettes, encouraging smokers to make a Switch to Better.

Imperial is committed to advancing THR through transparency, innovation, and collaboration. One such initiative is Omni™, a platform developed by our parent company BAT, to support education and stakeholder engagement around THR. Omni™ serves as a dynamic resource for those working toward a smoke-free future.

SOURCE Imperial Tobacco Canada

For more information or interview requests, please contact: Mary Moniz, Torchia Communications, 647-278-0152, [email protected]; Nancy Ibrahim, Imperial Media Relation, [email protected]