Eastern Company’s Board of Directors (EAST) have agreed to renew the manufacturing and joint cooperation agreement with the Japan International Tobacco Company (JTI) for three more years.
Who is affected🤷: EAST will launch a new product, “Matossian”, under the brand name Cleopatra Super, at a price of 24 pounds, said EAST’s managing director Hani Aman. The product will initially be released in limited quantities, hoping that the product finds popularity and the company continues to launch it. Aman added that there is a new product for molasses that is set to launch in the coming period, as well as negotiations with three foreign manufacturers to manufacture electronic cigarettes abroad and put them on the Egyptian market with Eastern Company’s brand.
Why is this important🤔: Aman stressed that EAST’s market share in the cigarette market ranges between 75% to 80%. The renewal of the agreement was made on new terms in favor of the Eastern Company for a period of three years instead of the previously agreed five years. Aman stated that the contract represents about 2% of the company’s total revenues.
