Illegal alcohol is increasingly entering parts of Victoria, with new research and enforcement findings suggesting that many bottle shops may be selling unregulated or illicit spirits. The issue has raised serious concerns over public health risks, tax losses, and possible links to organized crime.
On research from the National Drug Research Institute (NDRI), found that nearly 30 per cent of surveyed bottle shops were selling suspected illegal alcohol products.
Researchers discovered that no area in metropolitan or regional Victoria was completely free from retailers carrying such products. According to the study, the illegal alcohol market in Victoria is growing rapidly. More than 100 stores were examined over the past year, and at least 30 were found selling several unregulated alcohol products, with some stores stocking up to 14 different varieties.
Authorities are also investigating whether illegal alcohol networks could be linked to recent attacks on hospitality venues and a distribution centre in Melbourne, adding to concerns about the size and influence of the trade.
The Australian Tax Office (ATO) estimated that illegal alcohol activity cost Australia around $767 million in lost excise revenue during 2023–24, representing nearly 10 per cent of all alcohol duties collected.
Experts say the issue goes beyond financial losses and could pose serious health risks. Previous testing by the ATO identified harmful chemicals and industrial substances in suspected illicit alcohol products, raising concerns about consumer safety.
NDRI alcohol policy expert Dr Nic Taylor said illegal alcohol enters the market through smuggled imports, underreported domestic production, and unlicensed distilleries operating outside government regulations. He warned that products from unregulated distilleries pose the highest risk because retailers are often not required to verify where the alcohol comes from.
Consumer groups and industry representatives have also raised concerns that poor supply chain transparency allows unsafe products to mix with legitimate brands, making it difficult for customers to identify illegal products.
The Victorian Alcohol and Drug Association warned that unregulated alcohol could create a range of health problems, particularly because cheaply produced spirits may contain harmful contaminants.
Industry representatives say illegal alcohol is increasingly appearing in pubs, clubs, and other venues, with reports of people becoming sick after drinking such products.
Experts believe weak regulations and limited enforcement are contributing to the problem and are calling for stricter checks on alcohol sourcing. Consumers are also being advised to stay alert for warning signs such as unusually low prices, inconsistent bottle fill levels, and missing labels or safety information.