For years, illicit alcohol in Australia was treated as a fringe issue. Something limited to backyard stills, counterfeit spirits overseas, or dodgy imports intercepted at the border.
That is no longer the case!
Recent investigations in Victoria have found counterfeit vodka being sold openly through licensed bottle shops, pubs and nightclubs. Laboratory testing reportedly detected methanol and plastic contaminants in some products. Researchers estimate the illicit alcohol trade is now worth hundreds of millions of dollars annually in lost excise revenue. (ABC News)
More concerning is the growing evidence that organised crime is moving into the alcohol market in the same way it moved into illicit tobacco. Violence, extortion and firebombings linked to black-market supply chains are now being discussed openly by police and industry bodies. (News.com.au)
At the production end, legitimate distillers are reportedly being approached to manufacture undeclared spirit at commercial strengths around 37% ABV. In simple terms, this is a spirit produced outside the excise system and sold into the market illegally.
The overwhelming majority of Australian distillers reject this outright.
The Australian Distillers Association and its members have repeatedly condemned illicit alcohol production and called for stronger enforcement.
Legitimate distillers spend years building compliant businesses, paying excise, meeting food safety standards and protecting their reputations.
Illegal operators undercut that system entirely. (ABC News)
Consumers should understand that the difference between legal and illicit alcohol is not just the tax.
Does it have traceability?
A legal producer can identify raw materials, production records, batch numbers and quality controls. Illicit alcohol has none of that.
In the worst cases, contaminated spirit can cause blindness, organ damage or death.
Methanol poisoning is not theoretical; it is well-documented internationally and has already been identified in seized products here in Australia. (News.com.au)
There is also a broader industry impact.
Small independent distilleries already operate under high energy costs, packaging costs and one of the highest alcohol excise systems in the world.
When untaxed product enters the market at artificially low prices, legitimate producers cannot compete on price alone without compromising quality or compliance.
Consumers can help by avoiding suspiciously cheap spirits, checking for proper labelling, batch identification and legitimate retailer sourcing. If a bottle looks questionable, it probably is.
Australia has spent years watching organised crime expand through illicit tobacco.
The alcohol industry does not want to see the same mistake repeated with spirits. (UNSW Sites)
Several key points:
- Australia’s craft distilling sector operates within one of the most highly regulated production environments globally.
- Legitimate Australian spirits producers comply with rigorous standards covering food safety, production, storage, labelling and excise obligations
- Strong enforcement against illicit operators must be matched with sustainable policy settings that support compliant businesses rather than unintentionally strengthening the black market.
Remember, if it’s cheap, it’s probably illegal.
Duncan Harris is a professional distiller with 20 years of experience.