This morning, Booker revealed its tobacco sales in the first quarter had been hit by the illicit trade.

In the 12 weeks to 21 June like-for-like tobacco sales in Booker depots fell 2.5%, it said. In its newly acquired Makro business tobacco sales fared even worse – down a whopping 20.8% on a like-for-like basis.

“Tobacco sales, as expected, have been depressed by the growth of illicit tobacco,” said CEO Charles Wilson.

It probably didn’t help either that Makro’s tobacco business was relatively small anyway, that being classed as a retailer rather than a wholesaler meant it was forced to cover up its tobacco displays last year, and as revealed by The Grocer last month, Booker has also increased its tobacco prices to align them with its own.

But the stand-out point here is that the UK’s biggest cash & carry wholesaler, with a turnover of £4bn, is being hit by the illicit trade.

There have been repeated warnings across the industry – from retailers, wholesalers, trade associations and manufacturers – that the illicit trade is getting ever cockier and that increased regulation on tobacco will only fuel this.

After all, if a £4bn company’s sales are down because of the illicit trade, what affect is it having on its much smaller counterparts?

All eyes will therefore be on Europe today and tomorrow as the European Parliament ENVI committee votes on the EU Tobacco Products Directive, which has the potential to shake the tobacco sector to its core. As The Grocer revealed on Saturday, the directive could ban 10-packs, menthols, slims and the most popular sizes of roll-your-own – 20g and 40g packs.

Tobacco may be an addictive product that can cause serious health problems, but it is also a legal product that is bought by adults who have taken the decision to smoke. The sector needs regulation, but too much could play straight into the hands of the counterfeit market. And no one wants that.

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