Eastern Co SAE

Egypt

OWNERSHIP

State Owned^*

RANK

(out of 15)

FINAL SCORE

0.49

(out of 5)

Operating Environment

Eastern Co SAE (Eastern) operates in one Index Region (Middle East & Africa), and in one of the 36 Index Countries (Egypt).

Eastern operates exclusively in LMICs.

Eastern’s product portfolio consists of cigarettes, shisha and cigars.

Publicly Stated Position on Tobacco Harm Reduction

“We will enter the market for heated tobacco by relying on imported products initially, and an integrated local production line may be launched if demand increases.”
(Hani Aman, Managing Director and CEO, Asharq Business, October 2021)

Change Since 2020 Index

Eastern’s Harm Reduction Strategy score increased as a result of the announcement that Eastern intended to start selling heated tobacco.

Eastern’s Ratio of R&D Expenditure (RRPs versus HRPs) also increased (Eastern does not disclose details of its R&D expenditure, the Index estimates that 5% of the company’s R&D expenditure was on RRPs in 2021).

Eastern’s cigarette Volume Sales continued to increase in 2019-2021 (CAGR: +2.6%).

Category Scores

Strategy & Management

Eastern does not publicly acknowledge its role in, nor make a formal commitment to reducing, tobacco-related death and disease.

Eastern has an objective related to tobacco harm reduction (“to provide a product of high quality for the consumer as part of a strategy to search for alternatives that are less dangerous than traditional cigarettes”) and the objective is time-bound and measurable (“production is expected to start in the first half of 2022”).

Product Sales

Eastern has the ninth-highest Volume Sales of HRPs (2021: 69.8 billion stick equivalents).

In terms of Ratio of Volume Sales (RRPs versus HRPs), Eastern did not sell any RRPs as of the end of 2021.

Capital Allocation & Expenditure

Eastern has stated that it plans to start selling heated tobacco products, with an estimated 5% of R&D Expenditure toward RRPs.

At 1%, Eastern’s allocation of R&D Expenditure on RRPs (versus its total R&D expenditure) ranks it in 12th place.

Product Offer

Eastern offers HRPs (cigarettes, shisha and cigars) in one Index Country (Egypt), and currently does not sell any RRPs.

In terms of product categories, Eastern currently has three HRPs and no RRPs in its portfolio.

Marketing Policy & Compliance

Eastern does not publicly disclose a Youth Access Prevention Policy.

Lobbying & Advocacy

Eastern does not disclose its policy positions related to tobacco harm reduction.

Eastern does not disclose specific lobbying activities and memberships.

Net Value Sales

In 2021

High-Risk Products

100.0%

Reduced-Risk Products

0.0%

Products Offered

In 2021

High-Risk Products

Reduced-Risk Products

Capital Allocation & Expenditure

In 2021

High-Risk Products

99.0%

Reduced-Risk Products

1.0%

ppts = Difference in percentage between 2021 and 2019

*Eastern Co SAE is 50.5% owned by the Egyptian Ministry of Investment.