{"id":553523,"date":"2021-12-07T03:59:39","date_gmt":"2021-12-07T03:59:39","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/07\/tobacco-tender-is-back-on\/"},"modified":"2021-12-07T03:59:39","modified_gmt":"2021-12-07T03:59:39","slug":"tobacco-tender-is-back-on","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/07\/tobacco-tender-is-back-on\/","title":{"rendered":"Tobacco tender is back on"},"content":{"rendered":"

<\/a> Bringing a new tobacco competitor into the market, take three:<\/strong> The Industrial Development Authority (IDA) has relaunched a tender for a license to manufacture cigarettes, potentially ending the historical monopoly by state-owned Eastern Company, Masrawy<\/a> reports. The license would allow for the establishment of Egypt\u2019s second major tobacco company, entering a space that is currently occupied entirely by Eastern.<\/p>\n

Who\u2019s biting?<\/strong> As of yesterday, none of the four tobacco companies with local operations \u2014 Philip Morris, JTI-Nakhla Tobacco, British American Tobacco Egypt, and Al Mansour International Distribution Company \u2014 had purchased the booklet, Federation of Egyptian Industries\u2019 (FEI) cigarettes division Head Ibrahim Embaby told Enterprise. British Tobacco intends to take out the booklet within the next couple of days<\/strong>, a company representative told us. The IDA has set this coming Thursday as the deadline for companies interested in the license to purchase the conditions booklet for the tender, which outlines the revised terms for the license. The IDA will review offers on 23 January.<\/p>\n

What\u2019s different this time around? Nobody really knows.<\/strong> JTI-Nakhla, British American Tobacco, and Al Mansour had previously requested<\/a>, among other things, that the tender should only cover traditional tobacco products (rather than also including e-cigarettes and heated tobacco). The companies had also complained about tender terms that would protect Eastern\u2019s market share, suggesting that any new market entrant wouldn\u2019t be given a fighting chance. It\u2019s currently unclear whether, or how, the new tender addressed these concerns. The tender may have been re-issued without any changes at all, Embaby suggested in comments to Masrawy. It\u2019s also unclear why the IDA decided to issue a fresh tender, rather than opting to amend the terms of the original tender booklet, the British Tobacco representative told us.<\/p>\n

So what changed? Good lobbying, we suspect<\/strong>, including a visit to Egypt in early November by a senior delegation from BAT to discuss with government officials \u201cthe company's ambitious strategy and plan to achieve an impactful change in tobacco and nicotine products.\u201d The company issued a statement (pdf)<\/a> that was heavy on the praise for the government\u2019s management of the economy and investment environment \u2014 and called on the government to \u201cissue multiple new manufacturing licenses for traditional cigarettes and new products separately<\/strong>.\u201d BAT played up its GBP 20 mn investment in heated tobacco here this year and noted that it has \u201cprovided more than 1k jobs.\u201d<\/p>\n

Background:<\/strong> First introduced in March, the tender has been the subject of much drama, receiving strong backlash from several tobacco players who argued that the terms of the license would create an e-cigarette monopoly and provide preferential treatment to Eastern Company. Under the first tender<\/a>, the new market entrant would have had to price its products 50% higher than Eastern, and allow the state company to own a 24% stake.<\/p>\n

The government then conceded and redrafted the license terms, but companies were still unhappy<\/strong> with what they said were unfair conditions. Tobacco giant Philip Morris was the only company to take part<\/a> in the bidding round for the new license in August, while the three other tobacco companies filed grievance letters to the Madbouly cabinet and requested a deadline extension until 1 December.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bringing a new tobacco competitor into the market, take three: The Industrial Development Authority (IDA) has relaunched a tender for a license to manufacture cigarettes, potentially ending the historical monopoly by state-owned Eastern Company, Masrawy reports. The license would allow for the establishment of Egypt\u2019s second major tobacco company, entering a space that is currently […]<\/p>\n","protected":false},"author":1,"featured_media":553524,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7255],"tags":[2114,1978,247,72,289,3048,3040,131],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-553523","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-british-american-tobacco-egypt","tag-competition-watch","tag-eastern-company","tag-enterpriseam","tag-industrial-development-authority","tag-jti-nakhla-tobacco","tag-mansour-group","tag-manufacturing","wpautop","entry"],"acf":{"mongo_id":"d9ddc8fb-651a-42f8-9482-2702c816abc2","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/12\/243.jpg","photo_position":"above","related_issue":[553515],"teaser":"","voice_url":""},"yoast_head":"\nTobacco tender is back on - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2021\/12\/07\/tobacco-tender-is-back-on\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tobacco tender is back on\" \/>\n<meta property=\"og:description\" content=\"Bringing a new tobacco competitor into the market, take three: The Industrial Development Authority (IDA) has relaunched a tender for a license to manufacture cigarettes, potentially ending the historical monopoly by state-owned Eastern Company, Masrawy reports. 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The conditions booklet for the tender \u2014 which is set to end Eastern Tobacco\u2019s historical monopoly over the sector \u2014 has been redrafted\u2026","rel":"","context":"In "COMPETITION WATCH"","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/6\/46.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":554088,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/20\/tobacco-tender-boycott-take-two\/","url_meta":{"origin":553523,"position":1},"title":"Tobacco tender boycott, take two?","author":"enterpriseam admin","date":"20 December 2021","format":false,"excerpt":"Three major tobacco companies have reportedly chosen not to bid for a license to manufacture cigarettes: International tobacco producers JTI-Nakhla Tobacco, British American Tobacco Egypt and Al Mansour International Distribution Company will not be taking part in the renewed tender from the Industrial Development Authority (IDA), Akhbar El Youm reports.\u2026","rel":"","context":"In "Manufacturing"","block_context":{"text":"Manufacturing","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/manufacturing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/12\/399.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":561074,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/24\/are-things-getting-ugly-in-the-tobacco-industry\/","url_meta":{"origin":553523,"position":2},"title":"Are things getting ugly in the tobacco industry?","author":"enterpriseam admin","date":"24 March 2021","format":false,"excerpt":"The tender for a license to establish Egypt\u2019s second major tobacco company could face an antitrust probe after several tobacco players filed a formal complaint with the Egyptian Competition Authority (ECA) on the sale conditions, Masrawy reports, citing unnamed sources it says are in the know. Four major tobacco distributors\u2026","rel":"","context":"In "COMPETITION WATCH"","block_context":{"text":"COMPETITION WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/3\/295.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":610196,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/11\/16\/tobacco-distributors-file-antitrust-complaint-against-eastern-and-its-new-uae-shareholder\/","url_meta":{"origin":553523,"position":3},"title":"Tobacco distributors file antitrust complaint against Eastern and its new UAE shareholder","author":"enterpriseam admin","date":"16 November 2023","format":false,"excerpt":"Eastern is allegedly refusing to manufacture their products","rel":"","context":"In \"competition watch\"","block_context":{"text":"competition watch","link":"https:\/\/enterpriseam.com\/egypt\/tag\/competition-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2023\/11\/331.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":558272,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/03\/smoke-drama\/","url_meta":{"origin":553523,"position":4},"title":"Smoke drama","author":"enterpriseam admin","date":"3 August 2021","format":false,"excerpt":"Here\u2019s why tobacco companies are still unhappy with the recently-amended terms of the license to set up Egypt\u2019s second tobacco company: JTI-Nakhla Tobacco, British American Tobacco Egypt and Al Mansour International Distribution Company filed two separate letters \u2014 copies of which were obtained by Masrawy \u2014 to the Madbouly cabinet,\u2026","rel":"","context":"In "Manufacturing"","block_context":{"text":"Manufacturing","link":"https:\/\/enterpriseam.com\/egypt\/category\/industries\/manufacturing\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/72.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":558237,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/02\/good-news-for-fdi-watchers\/","url_meta":{"origin":553523,"position":5},"title":"Good news for FDI watchers","author":"enterpriseam admin","date":"2 August 2021","format":false,"excerpt":"Tobacco giant Philip Morris is among several tobacco companies with local operations that are said to be interested in bidding for a license to set up Egypt\u2019s second tobacco company, Federation of Egyptian Industries\u2019 (FEI) cigarettes division Head Ibrahim Embaby told Al Mal. The period during which companies could submit\u2026","rel":"","context":"In "Investment Watch"","block_context":{"text":"Investment Watch","link":"https:\/\/enterpriseam.com\/egypt\/category\/investment-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/8\/51.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/553523","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=553523"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/553523\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/553515"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/553524"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=553523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=553523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=553523"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=553523"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=553523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}