Eastern Company is already increasing its production to supply the demand in Egypt’s domestic market. Photo credit: Eastern Company
According to Eastern Company’s c.e.o. Hany Aman, Egyptian smokers smoke around 100 billion cigarettes a year.
In an Arab News report, Aman said approximately 18% of the country’s estimated 100 million population are smokers. Based on these figures, it would mean each smoker smokes more than 5,555 cigarettes a year, or 15 a day.
Eastern Company produces 70 billion per year, Aman said, with its share of the domestic market at 70-75%. Demand for cigarettes increase each June as consumers expect tax hikes in the new fiscal year. Prices also increase. The cost of a pack of locally produced cigarettes has more than doubled from E£24 Egyptian to E£60 since June, while Philip Morris products increased from E£42 to E£60-70 for LM cigarettes, and Marlboro and Merritt went from E£59 and E£64, respectively, to E£80.
Government officials, led by prime minister Mostafa Madbouly, met with Eastern Company management to review the company’s work activity, the volume of each product's production, and the work plans and development initiatives undertaken to boost production and establish equilibrium in the market for Eastern’s numerous products.
The meeting also addressed raising the supply orders for raw materials, which helps to increase daily production volumes, in order to provide more supply that will stabilize the market and keep cigarette prices under control.
According to Daily News Egypt, Aman said Eastern already began raising production in preparation for increasing distribution rates to contractors. The company plans to increase its daily distribution to contractors by 20-30% to 150 million cigarettes/day.