Islamic State blamed for Iraq’s cigarette sales fall

Slump: Supplies cannot get through to customers in war-ravaged land

Jihadist terrorist organisation Islamic State is causing Iraqis to stop smoking.

Cigarette sales in Baghdad, Mosul and other northern regions in the warravaged country have slumped because supplies can’t get through to customers.

UK cigarette giant Imperial Tobacco yesterday reported: “Underlying tobacco volumes were down by 5%, held back by Iraq where the deteriorating political and security situation has significantly impacted industry volumes.”

The company added that trading in Iraq “reduced significantly against a backdrop of a worsening political and security situation in territories where we have a high presence”.

Sales have been suffering due to distribution problems in parts of Iraq controlled by Islamic State (IS).

An Imperial Tobacco spokesman added: “It is an inevitable consequence of a turbulent and unstable environment in being difficult to get our products around the country.

“All companies dealing in consumer goods will be having similar issues.”

The company sold 138.2 billion cigarettes (actual and loose tobacco equivalent) worldwide over the six months to March 31. The Iraq situation cost 2% of sales – equating to almost three million cigarettes.

Imperial Tobacco first highlighted the Iraq issue last year but its latest report on performance to March 31 contains its first detailed comments.

The rapid advance across Syria and Iraq last year by militant fighters from IS threw the region into chaos.

The jihadist group, which has fighters from across the world, announced the establishment of a caliphate – an Islamic state – stretching from Aleppo in Syria to Diyala in Iraq.

The US assembled a coalition to fight the militants and has so far launched more than 1,900 air strikes against IS targets in Iraq. The UK launched its first air strikes in September last year.

Iraq is one of Imperial Tobacco’s 14 growth market countries, where individual sales are less than 15% but offer the greatest growth potential.

Together they account for 59% of the company’s tobacco net revenue.

The UK is one of Imperial Tobacco’s returns markets where the focus is on “safeguarding market share”.

The company has hailed a good performance over the six months, which it said it was on track to maintain.

IS militants have made a rapid advance across Syria and Iraq, throwing the region into chaos.