tea amongst the pyramids.
Discuss the tea market and the company\'s role in Egypt as he walks us through the history of tea in the land of Pharaoh.
After the Egyptian revolution in 1952 and the subsequent nationalisation, the Egyptian government intervened heavily and established central-controlled entities ---
Such as El Misr, El Nasr and Shemto for import and export business--
Imported and packaged tea leaves.
Since tea is the main subsidy and ration of food, sales and distribution across the country are carried out through a cooperative network
Agent called Gamaiyya.
This continued until 1974, when the problems of low productivity and poor economic management forced partial liberalization and gradual liberalization.
Private sector access.
Due to the lack of packaging machines, most of the tea imported by the private sector was in the pre-
The packing form is 50g, 100g, 250g aluminum foil lined packing and 20g bag, mainly from Sri Lanka, the packing form is much smaller in India, Indonesia and Kenya.
By the 1980 s, it was clear that the private sector would eventually play a more important and effective role in the industry.
In the 1980 s, the private sector gradually invested in packaging machines, limiting its dependence on imported prepackaged equipment. packed tea.
This coincides with Egypt\'s extensive and ambitious structural reform plan implemented in 1991 to address other issues --
Regulatory and time-consuming dispute mechanisms, tariff and non-tariff barriers
Tariff barriers, cumbersome labor policies and skills shortages
These are one of the project areas that continue to require government attention ---
Basically, when the full discipline of the WTO came into force at 2005, Egypt needed to implement change in order to become more integrated into the global economy.
Although Egypt\'s exports and foreign investment have therefore been strengthened, the two are still considered low compared to other emerging markets.
The industrial zone was then developed and generous tax holidays were provided to investors preparing to relocate to those areas.
Most tea packers who were previously located in the free zone would be happy to choose this change.
To further accelerate the automation process, the government has increased import tariffs. packed teas.
Once the factory is set up, the Packers can venture into other places ---mainly Kenya.
At the end of 1992, Egypt began to phase out food subsidies due to urgent pressure from the World Bank and the International Monetary Fund.
By the beginning of 1994, the El Misr, El Nasr and shemto of import and export operations were almost completely dismantled.
This segment, which is mainly low/medium-sized economic packaging, is replaced by better quality private sector brands-
The move expects consumers to tend to get better quality at a higher price, not at the expense of fewer cups.
As a result, per capita consumption and imports fell temporarily during 1993. 94 declined.
However, the market has been adjusted and imports have returned to their original level in a year or so.
At present, the tea market is fully in the hands of the private sector, except for the occasional armed bidding through the government.
Compared to the beginning of 1990, the quality of the local mixture has been greatly improved.
Quality has always been a key factor in determining the market share of each packager.
Egyptian businessmen already have a good understanding of the product and are able to distinguish the taste of tea by raising professional awareness.
The market itself is a discovery.
It requires patience, a large dose, and tact.
After all, this is the land of Pharaoh.
The Egyptians are traditionally warm.
Kind but cautious people
Similar to the rest of the Arab world, local tea trade is mainly household trade. owned.
Trust therefore plays an important role, but it can last a lifetime once it is established.
Egypt has a population of 66 million, about 75 million kilograms per year, and is the largest importer of tea in the region.
Tea imports in the Middle East and North Africa account for about a quarter of global imports.
Influence of Islam (
Drinking is prohibited)
Combined with economic capacity (
Because the majority of the population belongs to low-income people)
Is the main reason for steady growth.
In urban areas, in rural areas, tea is brewed in the form of \"kosharies\" and can also be cooked in inglasses or boil.
Although both processes involve a continuous infusion process, the latter produces a thicker dark liquid.
Tea is black, add a lot of sugar-
Three to five teaspoons per cup.
In their own way, consumers are able to differentiate different brands in the market, even though they sometimes have partial bias. \'Chai\' (tea in Arabic)
It is the most popular and eye-catching drink in Egypt. Street-
Cafes are everywhere, known as \"coffee shops\", offering a relaxing chit episode --
Chat on hot tea or Turkish coffee and have a few mouthfuls of hookah if time permits-
Known locally as Hubble. bubble.
The amount of consumption depends on the time of day and the theme of the hour.
These outlets are also an important and cost-effective form of advertising that has recently attracted the attention of market leaders.
Except for face-
The elevators in these coffee shops are equipped with free items such as tables, chairs, glasses and tablecloths with their respective brand logos.
In addition, Packers have introduced a variety of performance incentives for wholesalers that pass on a portion of performance incentives to specific retailers and coffee shops.
But quality is still the most important factor.
Importers/Packers distribute to retailers through wholesalers who regularly provide feedback on consumer preferences, product quality and sales volume ---
Sometimes it\'s a day to a day.
Packers usually give wholesalers a month\'s credit to determine the limit based on reliability and performance.
The same principle applies between wholesalers and retailers.
Until the beginning of 1990, the current trend of local tea trade in Egypt was mainly the Ceylon tea market.
Since then, preferences for Kenyan tea have grown steadily.
Currently, Kenya is a major supplier, with imports to Egypt accounting for almost 76%, followed by 13% in Sri Lanka, 5% in India, 4% in Indonesia and 2% in other African countries.
Due to the recent signing of an agreement to establish a common market for East and Southern Africa, Kenya\'s trade may increase further (COMESA)
Import duties fell from 30% to 3%.
This immediately triggered a fall in the price of Egyptian varieties in Sri Lanka.
The decline in prices has led to a viable spread between the two origins.
Unless the import tax of Asian origin is also reduced, these countries can only compete in price.
From apacker\'s point of view, this dependence on an origin is an unhealthy strategy.
Egypt is divided into two regions: Upper and Lower-
The upper part is located in the whole area south of Cairo, and the lower part is located in the area north of Cairo.
Egyptians usually like stronger cups, which makes the Kenyan Anti-Terrorism Committee (
Cutting, tearing and curling)
In contrast, people who prefer the light Ceylon Orthodox Church.
Cairo is mainly aimed at Kenya.
The retail brand market is led by El Arosa, which accounts for almost 65 of the market share, followed by Lipton and El Gawhara, which are 12 respectively.
5%, the rest of the Packers share the remaining 10%.
Tea bags account for only 2% of the market as a whole, and are mainly used by the more affluent sectors of society, the catering sector and tourism enterprises.
Although the teabag market is expected to grow, this is not the case.
In addition to hot tea, fresh mint is also popular. Herbals --
It is very popular as a healthy drink.
Instant tea, tea concentrate, bottled tea and canned teaexistent.
The consumption of tea is about four times that of coffee (
The closest competitor to Tea)
Followed by carbonated drinks and fresh fruit drinks.
Since tea is a hot drink, consumption in winter is higher than in summer.
The abundant supply of fresh fruit drinks in summer is reduced by 10-15%.
Currently, the future of tea among the Egyptian population is growing a little bit annually.
Since most of this growth is in the poor class of society, the tea market is always large because it is the most delicious drink and is good for health.
With the increasing consumer awareness, there will always be slight changes in the quality of the product.
Tea merchants in Van rees have been trained to meet these needs and are constantly offering high quality, competitive productspriced product.
With the history of 180, the company is expected to successfully meet the future needs of customers in Egypt and around the world.
In 1983, Rohan Abeyesekera began his career as an intern at trainee erjeebrothers in Colombo.
After four and a half years of work there, he moved to the tea house in Colombo.
In 1992, he started working for Van Rith in Sri Lanka, and he went to work for Van Rith in Jakarta.
He moved to Cairo in 1993 and has been working there since, but he also visits the company\'s Mombasa office on a regular basis.