Illicit Trade in Alcohol
Illicit trade in alcohol is widespread, representing significant percentages of alcohol consumption worldwide and stripping governments of billions of dollars in tax revenues. According to Euromonitor’s 2018 Global Study on Illicit Alcohol, 1 in 4 alcohol bottles are illicit, representing 25.8% of all global consumption.
In addition to the serious health risk for consumers, the illicit trade in alcohol results in substantial losses in tax and duty revenue for governments. According to the Euromonitor report, the fiscal loss to governments in these countries is as much US$ 3.6 billion every year. These findings correspond to a 2016 report by the EU Intellectual Property Office that estimated counterfeit spirits and wine drain €1.2 billion (US$1.4 billion) in government revenues in Europe, of which €739 million (US$843 million) are excise duties. For industry, the main impact relates to lost market shares, costs related to intellectual property theft, reputational damage and lost consumer trust. What is Illicit Alcohol?
Illicit trade in alcohol encompasses a wide variety of illegal activity that is typically characterized as:
Featured reports
FEATURED VIDEOS Country studies
Reports prepared by Euromonitor International
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FEATURED ISSUE TRACIT encourages Laos to improve regulation of alcohol markets, stop consumption of deadly illicit beverages
Laos - Text about the report.
Media article 1 Media article 2 FEATURED EVENTS TRACIT encourages LATAM governments to tighten controls on ethanol for illegal use
Esteban Giudici, Director of Programs, TRACIT
3 July 2024, Santa Cruz, Bolivia - During the 9th Congress of the Alianze Latinoamericana Anticontrabando (ALAC), Esteban Giudici, TRACIT Director of Programs presented to delegates an overview of TRACIT's Ethanol Control Toolkit. He explained that the diversion of ethanol for illegal use in the alcoholic beverage sector can happen in developed and developing countries. He urged government officials throughout the region to tighten controls on the ethanol supply chain.
TRACIT presents report to OECD Working Party on Countering Illicit Trade
Monica Ramirez, Global Director, Corporate Affairs, Anheuser-Busch InBev
5 April 2024, Paris - During a session on securing supply chains from illicit trade, Monica Ramirez, Global Director, Corporate Affairs at Anheuser-Busch InBev, provided OECD delegates with an overview of TRACIT's Ethanol Control Toolkit. She explained that the diversion of ethanol for illegal use in the alcoholic beverage sector can happen in developed and developing countries. She urged government officials to tighten controls on the ethanol supply chain and offered to brief national governments and intergovernmental agencies on how to implement the best practices delineated in the Toolkit.
TRACIT presents Ethanol Control Toolkit to Illicit Trade Summit of Customs Directors-General, Americas Region
Monica Ramirez, Global Director, Corporate Affairs, Anheuser-Busch InBev
27 March 2024, Panama City - Today TRACIT presented findings from its latest report, the Ethanol Control Toolkit, which promotes the use of ethanol control programs as an effective measure to counter illicit trade in alcohol. During the Summit, Monica Ramirez, Global Director, Corporate Affairs at Anheuser-Busch InBev presented the report to 25 Customs Directors-General, urging them to legislate and enforce ethanol control measures to mitigate the production of illicit alcoholic beverages, disrupt illicit alcohol networks and protect public health.
The Global Illicit Alcohol Trade Washington, D.C., November 5, 2018 
Learn how illicit alcohol impacts the achievement of the UN Sustainable Development Goals
From smuggling, counterfeiting and tax evasion, to the illegal sale or possession of goods, services, humans and wildlife, illicit trade is compromising the attainment of the UN SDGs in significant ways, crowding out legitimate economic activity, depriving governments of revenues for investment in vital public services, dislocating millions of legitimate jobs and causing irreversible damage to ecosystems and human lives.
The TRACIT report Mapping the Impact of Illicit Trade on the Sustainable Development Goals investigates illicit trade in 12 key sectors that participate significantly in international trade and are most vulnerable to illicit trade. For each sector, the negative impacts of illicit trade are mapped against the 17 UN SDGs. The full report is available here. Read the chapter: SDGs and illicit trade in alcohol 
WHAT ARE THE RISKS ASSOCIATED WITH ILLICIT ALCOHOL?
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