Japan Tobacco International (JTI) is considering launching a new product in the Egyptian market this year in coordination with the Eastern Company.
Khaled Ismail, the head of the external relations sector within the company, said that JTI’s new manufacturing agreement with the Eastern Company allows adding new types.
He added that the company has an ambitious plan to increase its types and products in the Egyptian market; however, launching a new product requires a marketing plan to ensure that the target sales are reached.
Moreover, Ismail explained that the effect of the recent increases on prices of cigarettes cannot be determined at the moment. A wait of at least three months is necessary, in order to measure the consumption rates. Also, he pointed out that the company aims to increase its sales and market share in 2018 after adding the new product Camel, while the growth of Winston continues.
He said that the company’s market share in the category of foreign cigarettes was over 7% throughout 2017.
The government has applied the health insurance law on the companies by increasing the price of a pack by 75 piasters. Additionally, the minister of finance has issued a decision to price the products, stipulating that the price of Winston would be EGP 27 and Camel EGP 34.
Ismail added that JTI was the fastest growing cigarette company in 2017, achieving a growth rate of 233%, and over 1bn cigarettes were sold.
He explained that Winston is topping the sales of the company in Egypt. It is the most sold product in the world amongst the companies’ products.
“Even though the product was launched less than four years ago, its sales surpassed the sales of other products that have been in the Egyptian market for years,” he said, adding,
He also said that the Egyptian market is characterised by strong competition, which eventually benefits consumers.
Several companies have launched new products over the past period, at pricing points that have not existed before in the Egyptian market, which gave consumers the option to choose from many types and price segments.
He added that the state has benefited from increasing the revenues from the annual taxes on cigarettes.