The owner of the store, who did not want to be identified, said tobacco had become so in demand for criminals he knew it was just a matter of time before his store was robbed.
"Eventually we knew it was going to happen ... because the way things are going in Hawke's Bay. Every two or three days there's a robbery here," the man said.
"We are not protected at all. .. Something can happen at any moment and there is no way we can escape from the situation. There is no way we can protect ourselves."
The hold-up involved a gun being pointed at the shopkeeper. It cost the financially struggling small business around $5000 in lost tobacco stock, cash and repairs to security cameras.
The shop owner said he believed the substance was targeted mostly due to its annually increasing price.
Tax on tobacco products rises 10 per cent on January 1 each year.
In the wake of the hold-up, he considered notselling cigarettes due to the value and danger attached to them. However, he said the revenue was too large to give up.
"If this sort of thing is not going to improve, we might take a decision not to sell it ... Safety is our main concern."
A recently robbed dairy owner from the Bay of Plenty said tobacco was being stolen and re-sold to dishonest retailers at a cut price.
"[It's] unscrupulous small business owners who don't care about where the products have come from," the owner, who also didn't want to identified, said.
"These burglars are selling this tobacco on the black market to pay for drugs ... They're not stealing it for themselves - no one can smoke that much. I'm sure that's what is happening, It's not for self use, It's a large-scale thing."
There have been at least 128 known tobacco thefts on retail stores.
Hawke's Bay area prevention manager inspector Andrew Sloan said there was "some anecdotal evidence" suggesting tobacco and cigarettes were being targeted.
"We continue to work with large and small retailers and provide advice and support to help improve security and make their premises less attractive for thieves," Mr Sloan said.
"Any robbery, involving violence or threats of violence, are of serious concern to police and we continue to work with communities in addressing incidents of this nature.
"Members of the public ... should advise police at their first opportunity if approached to purchase cigarettes they know are stolen."