Jordan's privately held International Tobacco and Cigarettes Company (ITCC) will soon gain access to the vast Egyptian market, under an agreement signed last week with Egypt Eastern Tobacco Company (ETC).
ETC will manufacture ITCC cigarette brands for a fee, using ready-minced Jordanian tobacco blends, while ITCC will market and distribute the products in Egypt. ETC has similar agreements with Philip Morris and BAT, which have proven profitable.
ITTC is expected to target the higher-price segments in the Egyptian cigarette market. Currently less than 10 percent of cigarettes consumed by Egyptians in 2002 were foreign brands.
ITCC is Jordan’s largest tobacco manufacturer with a market share of 48 percent. The company reported net revenues of 50 million Jordanian dinars ($71 million) in 2002. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
