Police arrest alleged ringleader of Melbourne tobacco wars that's led to dozens of arson attacks

Police have arrested an alleged ringleader of Melbourne's criminal tobacco wars, which have seen dozens of arson attacks across the city in recent months.

A 25-year-old Epping man was arrested by detectives in Bundoora this afternoon, and is believed to have coordinated arson attacks on tobacco shops, restaurants and other businesses under the orders of an overseas crime boss.

Leading investigator Detective Inspector Graham Banks said while the arrest was "significant", it would likely not dismantle the illusive market.

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Detectives believe the man was responsible for organising multiple arson attacks on businesses last year, including a fire at a smash repair business in Williamstown North, a fire at a tobacco store in Glenroy, two fires at a Docklands restaurant, a fire at a reception centre in Tullamarine and a fire at another Docklands restaurant.

The incidents allegedly happened between October and December last year.

Detective Inspector Graham Banks said police believed the man was one of the ringleaders of the local syndicates, but was being directed by a crime leader from overseas.

"The head of this group is overseas and has directed much of the harm that's been part of this landscape for several months," Banks said.

"Today's arrest is a significant one for us as it directly relates to the commissioning of a number of suspicious fires across Melbourne."

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The man will also be interviewed over a threat against a tobacco store owner in Glenroy in September.

Taskforce Lunar currently has 31 active arson investigations, which include tobacco stores, vehicles, gyms, restaurants and private addresses across Melbourne.

Since October, the taskforce has executed almost 70 warrants at tobacco stores across the state believed to be involved in the sale of illicit tobacco.

They have seized 108,722 vapes worth $3.2 million, more than three million cigarettes worth $3.9 million and more than a tonne of tobacco worth $1.9 million.

Police have also seized illegal drugs including cannabis, cocaine, weapons and money that was proceeds of crime.

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Detectives believe the tobacco war was a result of criminal syndicates in conflict due to competition for profit derived from the illicit tobacco market.

The current conflict includes both the physical placement of illicit tobacco into stores, as well as demands for stores to sell the syndicate's illicit product and to pay a 'tax' per week to operate.

Police believe the syndicates are comprised of people from Middle Eastern Organised Crime groups and Outlaw Motorcycle Gangs, who are then engaging local networked youth, street gangs and other low-level criminal to carry out the offending.

"This particular syndicate is a worldwide network that relates to a massive market worth millions of dollars," Banks said.

"There's nothing that will stop this person from trying to control that market, but it will disrupt his particular business for some time."

The task force is working closely with regional police, as well as a range of external agencies such as the ABF, Australian Criminal Intelligence Commission, AFP and ATO.