Tag: Eastern Co.

  • Eastern Studies E-cigs as Smoking Alternatives

    Eastern Studies E-cigs as Smoking Alternatives

    Photo: Lorendiz Gonzalez from Pixabay

    Eastern Co. is studying electronic cigarettes as an alternative to traditional combustible products, reports Egypt Today.

    In a statement to the Egyptian Exchange (EGX), Eastern Co. said it is consulting with manufacturers of electronic cigarettes in preparation for putting them on the market after obtaining the necessary licenses.

    The move is in line with the company’s strategy to expand and diversify its products.  

    Earlier in March, Eastern Co. announced that it is studying several new investment projects that will enhance its position in the field of smoking and tobacco alternatives.

    Eastern Co. operates within the food, beverage and tobacco sectors. It was established in July 1920 and currently holds a monopoly in the domestic tobacco market.

    Egypt has invited tobacco companies to bid for a license to manufacture cigarettes in the country, a move that could reduce Eastern Co.’s dominance of the local market.

  • Egypt Asked to Broaden Manufacturing Bid

    Egypt Asked to Broaden Manufacturing Bid

    Photo: Taco Tuinstra

    Nakhla Tobacco Co., Imperial Tobacco, British American Tobacco and Al-Mansour International Co. have asked Egypt to broaden the conditions of a prospective license to manufacture cigarettes in the country, reports Reuters.

    Egypt has invited tobacco companies to bid for a license to manufacture cigarettes in the country, which has been dominated for decades by the Eastern Co. state monopoly. The winning bid must include a plan to begin production within three years and at a rate of at least 15 billion cigarettes per year.

    The companies that were invited to bid said the license’s conditions were too narrow and asked the prime minister to halt the bid round until they could be made fairer.

    The bid deadline has been set for April 4, with the auction to be held on June 6.

    The cigarette industry contributes more than EGP60 billion Egyptian ($3.8 billion) to government coffers yearly, according to the state Industrial Development Authority.

     

  • Egypt Raises Cigarette Prices

    Egypt Raises Cigarette Prices

    Photo: Taco Tuinstra

    Egypt plans to increase cigarettes prices by EGP0.25 per pack in July 2021, reports The Daily News.

    The proceeds of the increase will contribute to funding for the Universal Healthcare Insurance program. When the program was launched in July 2018, the government increased cigarette prices by EGP0.75 per pack to raise funding.

    Under the program’s regulations, an additional EGP0.25 per pack will be added every three years until the total tax reaches EGP1.50/ per pack.

    Domestic market leader Eastern Co. said it expects the rises to be enforced as per schedule.

    The company is expected deliver a strong performance in fiscal year 2020-2021, on the back of higher production capacity and utilization rates. The company recently upgraded its production facilities, increasing the production capacity from 200 million cigarettes per day to 250 million cigarettes per day.

    Eastern’s performance is further boosted by the reduction in the retailer’s margin on cigarettes through indirect price increases, from EGP0.10 per pack to EGP 0.025 per pack in December 2020.

    The appreciation of the Egyptian pound will likely also enhance Eastern’s performance as it relies entirely on imports for raw tobacco, which make up more than 80 percent of raw materials.

  • Eastern signs deal with BAT

    Eastern Co.has signed a five-year cooperation agreement with British American Tobacco, reports Tegaranet.

    Under the deal, Eastern will produce Viceroy cigarettes in Egypt, while BAT will carry out the marketing and distribution.

    The deal is effective from 2014 through 2019.