{"id":554088,"date":"2021-12-20T04:05:17","date_gmt":"2021-12-20T04:05:17","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/20\/tobacco-tender-boycott-take-two\/"},"modified":"2021-12-20T04:05:17","modified_gmt":"2021-12-20T04:05:17","slug":"tobacco-tender-boycott-take-two","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/12\/20\/tobacco-tender-boycott-take-two\/","title":{"rendered":"Tobacco tender boycott, take two?"},"content":{"rendered":"

<\/a> Three major tobacco companies have reportedly chosen not to bid for a license to <\/strong>manufacture cigarettes:<\/strong> 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<\/a> reports. In a letter to the Federation of Egyptian Industries\u2019 (FEI) cigarettes division, a copy of which Akhbar El Youm said it has obtained, the companies said they were \u201csurprised\u201d by the IDA\u2019s decision to re-launch the tender this month and would decline to participate, citing continued concerns over the tender\u2019s allegedly unfair conditions.<\/p>\n

\u201cNew\u201d terms fail to assuage monopoly concerns: <\/strong>The trio of tobacco-makers said that the latest set of conditions<\/a> for the tender, issued by the IDA in December, would \u201ccreate a situation resembling a monopoly in Egypt\u2019s cigarette market,\u201d adding that the authority had not taken into account changes proposed by the companies over the summer to address their concerns.<\/p>\n

The three companies didn\u2019t take part in the last bidding round in August either. <\/strong>Tobacco giant Philip Morris was the only company to take part<\/a> in an August bidding round for the new license, while the three other tobacco companies filed grievance letters<\/a> to the Madbouly cabinet and requested a deadline extension until 1 December.<\/p>\n

Companies should not be expected to take a \u201csupporting role\u201d<\/strong> for another company that owns a large portion of the local cigarette industry, FEI cigarettes division head Ibrahim Embaby told Akhbar El Youm in a veiled reference to Philip Morris, whose market share exceeds 24%.<\/p>\n

Why are the companies displeased? <\/strong>The new booklet maintains the stipulation that the new market entrant will have to take EGX-listed, state-owned tobacco giant Eastern Company on board as a 24% shareholder. The new license will also still authorize the distribution of e-cigarettes and \u201cheated tobacco\u201d products, which companies previously argued would create a monopoly and put other cigarette companies at a disadvantage.<\/p>\n

Reminder: The new entrant would be required to approach Eastern to reach a commercial agreement to make a product <\/strong>for domestic distribution<\/strong> in the \u201clow-tax\u201d cigarette segment<\/strong> on a toll-manufacturing or joint-venture basis at Eastern\u2019s facilities, a senior executive at the state-owned player told Enterprise previously<\/a>.<\/p>\n

Background:<\/strong> Earlier this month, the IDA relaunched its tender<\/a> to allow a second company to enter the tobacco market as a manufacturer and seller of traditional and electronic cigarettes. The new conditions booklet for the license is largely unchanged from those back in March of this year<\/a>, which earned backlash from tobacco players, who argued that the terms of the license would give preferential treatment to Eastern. The terms have now been redrafted three times.<\/p>\n","protected":false},"excerpt":{"rendered":"

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. In a letter to the […]<\/p>\n","protected":false},"author":1,"featured_media":554089,"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":[2114,72,3048,3040,131,7401],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-554088","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-manufacturing","tag-british-american-tobacco-egypt","tag-enterpriseam","tag-jti-nakhla-tobacco","tag-mansour-group","tag-manufacturing","tag-tobacco","wpautop","entry"],"acf":{"mongo_id":"023f4634-226f-4734-8f83-4f842972bafd","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2021\/12\/399.jpg","photo_position":"above","related_issue":[554080],"teaser":"","voice_url":""},"yoast_head":"\nTobacco tender boycott, take two? - 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\/20\/tobacco-tender-boycott-take-two\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tobacco tender boycott, take two?\" \/>\n<meta property=\"og:description\" content=\"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. 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The license would allow for the establishment of Egypt\u2019s second major tobacco company, entering\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\/243.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":562706,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/06\/03\/the-tobacco-license-tender-may-be-back-on-again\/","url_meta":{"origin":554088,"position":1},"title":"The tobacco license tender may be back on again","author":"enterpriseam admin","date":"3 June 2021","format":false,"excerpt":"Revised terms for the license to establish Egypt\u2019s second major tobacco company have been handed to four local tobacco companies, according to a document seen by Reuters. 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":561074,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/03\/24\/are-things-getting-ugly-in-the-tobacco-industry\/","url_meta":{"origin":554088,"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":558272,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/03\/smoke-drama\/","url_meta":{"origin":554088,"position":3},"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":554088,"position":4},"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":[]},{"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":554088,"position":5},"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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/554088","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=554088"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/554088\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/554080"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/554089"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=554088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=554088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=554088"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=554088"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=554088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}