""

Required Report - public distribution

**Date:** 12/1/2003

**GAIN Report Number:** EG3026

E

**Egypt**

**Retail Food Sector**

**Report**

**2003**

**Approved by:**

![](media/image1.wmf)Asif J. Chaudhry

US Embassy

**Prepared by:**

Ali Abdi & Manal El Masry

**Report Highlights:**

The Egyptian food retail sector continues to develop rapidly. Foreign
investors have set their sights on the local retail sector to expand
grocery store chains into Egypt\'s urban centers. International
supermarket chains, such as \"Carrefour,\" \"Shoprite,\" and
\"Monoprix\" (soon to open) continue to expand in Egypt.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Cairo \[EG1\]

\[EG\]

Table of Contents

[II. ROAD MAP FOR MARKET ENTRY FOR U.S. SUPPLIERS
5](#ii.-road-map-for-market-entry-for-u.s.-suppliers)

[A. SUPERMARKETS AND HYPERMARKETS 5](#a.-supermarkets-and-hypermarkets)

[International Supermarkets and Hypermarkets
5](#international-supermarkets-and-hypermarkets)

[Local Supermarkets and Hypermarkets
5](#local-supermarkets-and-hypermarkets)

[FAS/Cairo Upcoming Activities 6](#fascairo-upcoming-activities)

[DISTRIBUTION CHANNELS 6](#distribution-channels)

[B. CONVENIENCE STORES, GAS MARTS, AND KIOSKS
9](#b.-convenience-stores-gas-marts-and-kiosks)

[C. \"MOM AND POP\" SMALL INDEPENDENT GROCERY STORES
10](#c.-mom-and-pop-small-independent-grocery-stores)

[III. COMPETITION 10](#iii.-competition)

[IV. BEST PRODUCT PROSPECTS 15](#iv.-best-product-prospects)

[A. Products in the market, which have good sales potential:
15](#a.-products-in-the-market-which-have-good-sales-potential)

[B. Products not present in significant quantities, but which have good
sales potential:
15](#b.-products-not-present-in-significant-quantities-but-which-have-good-sales-potential)

[C. Products not present in supermarkets because they face significant
barriers:
15](#c.-products-not-present-in-supermarkets-because-they-face-significant-barriers)

[V. POST CONTACT AND FURTHER INFORMATION
16](#__RefHeading___Toc56918896)

I. MARKET SUMMARY

The food retail sector in the Egyptian market continues its rapid
development, which started with the opening of 18 outlets of Metro, a
local supermarket chain, and the presence of a number of multi-national
firms, such as \"Shoprite\" South Africa, \"Carrefour\" French and
"Monoprix."

**a) General Background**

-   Population of Egypt is around 69 million; the largest cities are
    Cairo (18 million) and Alexandria (12 million).

-   GDP (US dollars / FY 02/03): 76.6 billion

-   GDP per capita: \$1,470 in 2002

-   Inflation rate: 3.9 percent

-   Total Ag. imports (2002): \$3.5 billion

-   Total U.S. Ag. imports (2002): \$866,940 million

**b) Highlights of recent trends that impact the retail:**

-   The devaluation of the Egyptian pound has led to an increase in the
    price of imported products by 45 percent and for the local products
    30 percent.

-   The introduction of hypermarkets and superstores is helping to
    re-shape the retail industry. "Carrefour," which was the first
    international hypermarket to open in Egypt, succeeded to change the
    way Egyptians shop, making it possible to buy everything under one
    roof with a weekly shopping list rather than visiting a series of
    small groceries, meat and produce vendors on a daily basis. This
    change has prompted some local retailers to reinvent themselves.

-   With the expansion of supermarkets and hypermarkets, it is expected
    that medium size supermarkets (500 square meters) and grocery stores
    may go out of business within the next five years. The future looks
    bright for supermarket chains that can cater to changing consumer
    buying habits.

-   Egyptian consumers are beginning to expect cleanliness, quality, and
    wider variety of products. Consumers are currently asking for
    convenience and shopping at supermarkets is becoming a leisure
    activity. Consumers depend less on neighborhood grocery and
    convenience stores except for last minute, spur of the moment food
    needs. In the suburbs, and less developed areas of Egypt, grocery
    and convenience stores still play an important role in the retail
    business.

-   The average consumer spends about \$12 per basket. However, it
    varies from one area to another. Middle and upper-middle income
    shoppers are drawn to supermarket chains.

-   Home delivery service is becoming very popular among the large
    retailers. The objective of the delivery service is to create
    customer loyalty. None of the retailers charge extra fees for the
    delivery.

-   Distribution/retail of alcoholic beverages is limited to a few
    authorized dealers only.

-   The United States of America, France, Germany, Italy, Switzerland,
    Greece, Holland, Denmark, and South Africa are the dominant
    suppliers of consumer-ready food products to Egypt.

-   The following tables illustrate food retail sales (value)\* and a
    snapshot of advantages and challenges in this market:

  -------------------------------------- ---------- ---------- ---------- ---------- ----------
  **EGYPT**                              **1998**   **1999**   **2000**   **2001**   **2002**

  Wholesale and retail sales,            51,587     55,376     60,001     61,809     \-
  restaurants and hotels (\$ million)                                                

  Retail sales for food and non-food     86.07      90.53      97.86      104.14     111.47
  products through retail outlets (\$                                                
  billion)                                                                           

  Food retail sales (\$ billion)         55.08      57.94      63.61      67.69      70.23

  **\* Source: Euromonitor from trade                                                
  sources**                                                                          
  -------------------------------------- ---------- ---------- ---------- ---------- ----------

+----------------------------------+-----------------------------------+
| **ADVANTAGES**                   | **CHALLENGES**                    |
+----------------------------------+-----------------------------------+
| Of the 69 million Egyptians,     | Lack of product availability and  |
| about 12 million can afford to   | limited income.                   |
| purchase imported food products. |                                   |
|                                  | Egyptian import regulations and   |
|                                  | labeling requirements are too     |
|                                  | stringent.                        |
+----------------------------------+-----------------------------------+
| Products perceived as both       | Lack of U.S. supplier interest in |
| western and new-to-market have a | the Egyptian market.              |
| wide appeal to Egyptians.        |                                   |
|                                  | With the EU-Egypt Partnership     |
| U.S. products are perceived as   | Agreement, import tariffs on most |
| \"high quality.\"                | European products will be cut     |
|                                  | substantially or eliminated over  |
|                                  | the next 12-15 years. The         |
|                                  | agreement may lead to             |
|                                  | displacement of some U.S.         |
|                                  | agricultural products especially  |
|                                  | in the processed food sector      |
|                                  | unless positive trade policy      |
|                                  | changes can be made between the   |
|                                  | U.S. and Egypt.                   |
+----------------------------------+-----------------------------------+

  ---------------------------------- ------------------------------------
  Expansion of the number of         With the growing size of supermarket
  supermarket chains. International  chains, the desire to introduce a
  companies interested in the        broad array and new-to-market
  Egyptian market include,           products is strengthening.
  \"Carrefour\" (French),            
  \"Shoprite\" (South African), and  
  "Monoprix" (French).               

  ---------------------------------- ------------------------------------

# II. ROAD MAP FOR MARKET ENTRY FOR U.S. SUPPLIERS

# A. SUPERMARKETS AND HYPERMARKETS

#### International Supermarkets and Hypermarkets

-   Multi-national food retailers have started to invest in Egypt.
    Shoprite \"South African chain\" is currently operating five outlets
    with a plan to open two more within one year. Their strategy is to
    offer competitive prices to maintain consumers and deal directly
    with manufacturers and not distributors. Shoprite does not compete
    with retail markets like Metro and Alfa markets but rather with
    Egyptian wholesalers. They import directly for their supermarket
    chains from South Africa, Italy, Hong Kong, and Singapore.

-   The French chain "Carrefour" opened two hypermarkets; one in Cairo
    and one in Alexandria. Their plan is to open two more outlets
    by 2005. Their focus is on middle-income families. Carrefour is now
    reporting an average of 15,000 visitors per day on weekdays and
    38,000 visitors on the weekends; an average of 7,000 transactions a
    day during week days and 12,000 daily on weekends. They rely
    primarily on local goods.

-   The French chain "Monoprix" which is expected to open two outlets by
    2005, will feature more international products at lower prices.

#### Local Supermarkets and Hypermarkets

-   Metro, Egypt's largest food retailer, is currently operating 18
    outlets in Cairo and Alexandria. Metro plans to expand in other
    governorates, such as Ismailia, Hurghada, and Mansoura. This will
    add to the rapidly growing retail sector and services to consumers
    and strengthen Egypt's retail distribution network. Metro carries a
    variety of products including over 16,000 food items and 6,000
    non-food items.

```{=html}
<!-- -->
```
-   The only local hypermarket currently operating in Egypt is \"Alfa\"
    Market. Currently, Alfa Market has six outlets. It used to be the
    biggest market in Cairo before Carrefour. Alfa carries about 70,000
    items out of which 20,000 are food items. They provide consumers
    other services, such as dry cleaning, video rentals \...etc.

-   "HyperOne" a second local hypermarket is scheduled to open in early
    2004 on the outskirts of Sixth of October City near Cairo. The
    project will include a 10,000 square meter hypermarket, 20 shops,
    food court and a children's entertainment area.

**ENTRY STRATEGY**

#### FAS/Cairo Upcoming Activities

-   FAS/Cairo plans to organize a recipe campaign in Cairo targeting 140
    outlets including hotels, restaurants, cafes, elite health clubs,
    pastries and pubs in addition to three major supermarket chains in
    Cairo. Recipes developed on a monthly basis using a famous TV
    dietitian will be highlighted through mass mailing of postcards.
    Live cooking presentations will be conducted inside the supermarkets
    promoting U.S. brands during the recipe campaign.

-   FAS/Cairo will organize an Egyptian delegation to attend the FMI
    show every May. The objective is to acquaint Egyptian
    importers/distributors with the high quality of U.S. products. With
    the expansion of the number of supermarket chains and the
    introduction of hypermarkets in the Egyptian market, there is a good
    opportunity to introduce new-to-market products.

**U.S. Suppliers Strategy**

-   U.S. exporters, Egyptian importers, and other traders may
    participate in FAS-sponsored promotions in Cairo and Alexandria,
    such as in-store promotions, sports clubs (class A) promotions in
    Cairo to introduce new products or expand sales of U.S. products
    already available in the Egyptian market.

-   U.S. suppliers should study the market and be prepared to comply
    with Egypt's labeling requirements; entertain orders that are
    smaller than normal, share a shipment with other U.S. exporters or
    share more than one product in one shipment.

#### DISTRIBUTION CHANNELS

Importers either sell their products to wholesalers who distribute food
products to retail outlets, or sell directly to retailers. There are
three supermarket chains, namely Carrefour, Oscar, and Shoprite that
import food products directly.

Distribution Channels for Food, Alcoholic Beverages and Confectionery.

+---------------------------+------------------------------------------+
| Food                      | -   Hypermarkets and supermarkets        |
|                           |                                          |
|                           | -   Large grocery stores                 |
|                           |                                          |
|                           | -   Medium and small grocery stores      |
|                           |                                          |
|                           | -   Hotels and Restaurants               |
+---------------------------+------------------------------------------+

+---------------------------+------------------------------------------+
| Alcoholic Beverages       | -   Hotels                               |
|                           |                                          |
|                           | -   Restaurants with license for         |
|                           |     alcoholic beverages                  |
|                           |                                          |
|                           | -   Liquor shops (very limited)          |
+---------------------------+------------------------------------------+
| Confectionery             | -   Hypermarkets and supermarkets        |
|                           |                                          |
|                           | -   Large grocery stores                 |
|                           |                                          |
|                           | -   Medium and small grocery stores      |
|                           |                                          |
|                           | -   Petro/gas/service stations           |
|                           |                                          |
|                           | -   Kiosks                               |
|                           |                                          |
|                           | -   Pastry shops                         |
+---------------------------+------------------------------------------+

**COMPANY PROFILES**

**(2002 / 2003)**

+--------------+------------+------------+------------+--------------+
| **Retailer   | **O        | **No. of   | **L        | **Purchasing |
| Name &       | wnership** | Outlets**  | ocations** | Agent Type** |
| Outlet       |            |            |            |              |
| Type**       |            |            | **(City)** |              |
+==============+============+============+============+==============+
| Metro        | Local      | 18         | Cairo,     | Direct /     |
|              |            |            | A          | Distributor  |
|              |            |            | lexandria, |              |
|              |            |            | Ismailia   |              |
+--------------+------------+------------+------------+--------------+
| Ragab Sons   | Local      | 13         | Cairo      | Direct /     |
|              |            |            |            | Wholesaler   |
+--------------+------------+------------+------------+--------------+
| Fathalla     | Local      | 8          | Alexandria | Direct /     |
|              |            |            |            |              |
|              |            |            |            | Importer /   |
|              |            |            |            | wholesaler   |
+--------------+------------+------------+------------+--------------+
| Zahran       | Local      | 5          | Alexandria | Direct       |
+--------------+------------+------------+------------+--------------+
| Alfa         | Local      | 5 (4       | Cairo &    | Direct /     |
|              |            | hy         | Alexandria | Importer     |
|              |            | permarkets |            |              |
|              |            | and one    |            |              |
|              |            | su         |            |              |
|              |            | permarket) |            |              |
+--------------+------------+------------+------------+--------------+
| El Hawari    | Local      | 5 (one of  | Cairo      | Wholesaler   |
|              |            | which is a |            |              |
|              |            | modern     |            |              |
|              |            | su         |            |              |
|              |            | permarket) |            |              |
|              |            |            |            |              |
|              |            | Plan to    |            |              |
|              |            | open a     |            |              |
|              |            | local      |            |              |
|              |            | hyper      |            |              |
|              |            | market in  |            |              |
|              |            | 2004       |            |              |
+--------------+------------+------------+------------+--------------+
| Shoprite     | Int        | 5          | Cairo      | Direct /     |
|              | ernational |            |            | Importer     |
|              |            |            |            |              |
|              | Joint      |            |            |              |
|              | Venture    |            |            |              |
+--------------+------------+------------+------------+--------------+
| Abba         | Local      | 4          | Cairo      | Direct /     |
|              |            |            |            | Wholesaler   |
+--------------+------------+------------+------------+--------------+
| Seoudi       | Local      | 3          | Cairo      | Direct       |
+--------------+------------+------------+------------+--------------+
| Oscar        | Local      | 2          | Cairo      | Direct /     |
|              |            |            |            | Agent /      |
|              |            |            |            | Importer     |
+--------------+------------+------------+------------+--------------+
| Carrefour    | Int        | 2          | Cairo /    | Direct /     |
|              | ernational |            | Alexandria | Importer     |
+--------------+------------+------------+------------+--------------+

Annual sales range from \$7 - \$100 million.

+----------+-----------+-----------+-----------+-----------+-----------+
| #        |           |           |           |           |           |
| ##### Su |           |           |           |           |           |
| permarke |           |           |           |           |           |
| ts, Hype |           |           |           |           |           |
| rmarkets |           |           |           |           |           |
| , and Co |           |           |           |           |           |
| nvenienc |           |           |           |           |           |
| e Stores |           |           |           |           |           |
|          |           |           |           |           |           |
| ***(1998 |           |           |           |           |           |
| --       |           |           |           |           |           |
| 2002)*** |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| ***NO.   | *         | *         | *         | *         | *         |
| OF       | **1998*** | **1999*** | **2000*** | **2001*** | **2002*** |
| OU       |           |           |           |           |           |
| TLETS*** |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| Supe     | 325       | 360       | 390       | 437       | 493       |
| rmarkets |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| Hype     | 2         | 2         | 2         | 3         | 6         |
| rmarkets |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| Con      | 245       | 250       | 280       | 324       | 372       |
| venience |           |           |           |           |           |
| stores   |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+
| Source:  |           |           |           |           |           |
| Eur      |           |           |           |           |           |
| omonitor |           |           |           |           |           |
| Data     |           |           |           |           |           |
| (2003)   |           |           |           |           |           |
+----------+-----------+-----------+-----------+-----------+-----------+

**Demand and Supply Trends**

-   Mid to upper income consumers are becoming more and more demanding
    and are increasingly perceiving traditional supermarkets in Egypt as
    inadequate. Retailers started to become customer driven in their
    approach to staff, cleanliness, product range, and service.

-   Consumption of prepared foods is growing rapidly. The increasing
    number of working women has led to an increase in the purchasing
    power and demand for ready made meals and/or easy to cook meals.

-   The trend for purchasing frozen products is increasing.

-   Choices for dietetic or low calorie food items are very limited.

-   Most importers tend to bring in a wide range of products, but only
    in small quantities. With a few exceptions, wholesalers and
    retailers do not import directly.

## B. CONVENIENCE STORES, GAS MARTS, AND KIOSKS 

Convenience stores, kiosks, and gas marts sell imported candy, snacks,
juices and soft drinks. They do not import, but purchase from local
importers/wholesalers and distributors. The most popular Gas Marts are
Mobil Mart, Esso, Caltex, and Shell. Exxon Mobil, namely "On The Run",
has recently introduced a new concept of convenience stores. They
currently operate over 10 stores and have plans to open 25-30 stores
within the next couple of years. These stores range in size from 60-200
sq. meters. They are open 24 hours and sell a variety of products
including ready-made meals.

-   The average gas mart outlet is 30 to 50 square meters with a few
    exceptions (few Mobil Mart outlets have 100 square meters).

-   Average sales differ according to the gas mart location; for example
    the medium outlet sales is \$14,000 while the high outlet sales is
    \$60,000 per month.

-   Dealers are in complete control of the outlets.

-   Gas mart profit margins are about 25 percent of sales.

Convenience stores are not suitable for marketing activities or
introducing new-to-market products.

**ENTRY STRATEGY**

-   U.S. suppliers must make sure that products are consistently
    available in the market in order to build product loyalty. Suppliers
    should appoint a reliable distributor to ensure that products are
    available in sales outlets at all times.

### C. \"MOM AND POP\" SMALL INDEPENDENT GROCERY STORES

Small grocery stores offer a limited number of imported food products.
It is perceived that the small grocery stores will diminish with the
expansion of large supermarket chains and hypermarkets.

# III. COMPETITION

In 2002, according to the UN Trade Data, total imports to Egypt from the
U.S. for consumer oriented products totaled \$42 million compared to
\$50.5 million in 2001. This decrease is attributed to the current
political situation in the Middle East and the devaluation of the
Egyptian pound, which has lost about 30 percent of its value against the
dollar since January 2003. Major importers are reporting a decrease of
30 percent in sales as a result of these conditions.

The U.S. and European countries, mainly France, Spain, Italy, Germany,
Greece, Holland, Denmark and South Africa are the dominant suppliers of
consumer-ready products to Egypt.

The following table illustrates the Egyptian imports for the following
products categories:

**(Jan -Dec. 2002 \$ Mil)**

+---------------+-----------+-------------+-------------+-------------+
| **PRODUCT**   | **TOTAL   | **IMPORTS   | **U.S.      | **IMPORT**  |
|               | IMPORTS** | FROM THE    | MARKET**    |             |
|               |           | U.S.**      |             | **TARIFF    |
|               |           |             | **SHARE     | \*\***      |
|               |           |             | (%)**       |             |
+===============+===========+=============+=============+=============+
| Fresh         | 2,964,167 | 0           | 0 %         | 20%         |
| vegetables    |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Frozen        | 4,482,940 | 0           | 0%          | 30%         |
| vegetables    |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Dried         | 1         | 297,519     | 2%          | 20%         |
| vegetables    | 5,163,857 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Nuts          | 1         | 2,582,107   | 22%         | 30%         |
|               | 1,924,865 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Fresh fruit   | 1,614,873 | 33,567      | 2%          | 30-40%      |
+---------------+-----------+-------------+-------------+-------------+
| Apples        | 1         | 3,574,182   | 19%         | 40%         |
|               | 8,377,459 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Dried fruit   | 8,943,397 | 223,036     | 2%          | 30-40%      |
+---------------+-----------+-------------+-------------+-------------+
| Coffee        | 6,369,397 | 11,746      | 0%          | 5-30%       |
+---------------+-----------+-------------+-------------+-------------+
| Spices        | 428,460   | 0           | 0%          | 20%         |
+---------------+-----------+-------------+-------------+-------------+
| Beef canned   | 1,783,510 | 0           | 0%          | 30-40%      |
| (red meat     |           |             |             |             |
| prepared)     |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Red meat      | 19        | 156,034     | 0%          | 5%          |
| (fresh,       | 1,419,592 |             |             |             |
| chilled,      |           |             |             |             |
| frozen)       |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Bovine,       | 3         | 34,169,474  | 100%        | 5-40%       |
| offals frozen | 4,276,728 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Frozen fish   | 6         | 3,135,755   | 5%          | 5%          |
|               | 4,070,544 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Cocoa paste   | 1,049,461 | 0           | 0%          | 20%         |
+---------------+-----------+-------------+-------------+-------------+
| Cocoa butter  | 1,244,744 | 0           | 0%          | 30%         |
+---------------+-----------+-------------+-------------+-------------+
| Cocoa powder  | 1         | 46,803      | 0%          | 30%         |
|               | 1,899,353 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Biscuits      | 3,729,473 | 984,798     | 26%         | 40%         |
| /bread/pastry |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Jams          | 316,621   | 49,259      | 16%         | 40%         |
+---------------+-----------+-------------+-------------+-------------+
| Juices        | 1,222,398 | 89,298      | 7%          | 30%         |
+---------------+-----------+-------------+-------------+-------------+
| Sauces/mayon  | 806,375   | 299,658     | 37%         | 30%         |
| naise/ketchup |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Ice cream     | 974,029   | 205,044     | 21%         | 30%         |
+---------------+-----------+-------------+-------------+-------------+
| Beer          | 11,887    | 0           | 0%          | 1200%       |
+---------------+-----------+-------------+-------------+-------------+
| Wine          | 204,127   | 16,825      | 8%          | 3000%       |
+---------------+-----------+-------------+-------------+-------------+
| Pet food      | 1,209,008 | 152,522     | 13%         | 30%         |
+---------------+-----------+-------------+-------------+-------------+
| Pastas        | 892,919   | 4,199       | 0%          | 40%         |
+---------------+-----------+-------------+-------------+-------------+
| Cheese        | 2         | 230,755     | 1%          | 10-30%      |
|               | 2,652,069 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Butter        | 6         | 0           | 0%          | 5-15%       |
|               | 5,801,264 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Milk powder   | 3         | 1,600,713   | 5%          | 10-40%      |
|               | 3,837,190 |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| Pasteurized   | 152,413   | 42,703      | 28%         | 30%         |
| Eggs          |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+
| **Grand       | **558,    | *           | **9%**      |             |
| Total**       | 889,437** | *50,043,340 |             |             |
|               |           | \***        |             |             |
+---------------+-----------+-------------+-------------+-------------+
| -   \* U.S.   |           |             |             |             |
|     Trade     |           |             |             |             |
|     data for  |           |             |             |             |
|     cons      |           |             |             |             |
| umer-oriented |           |             |             |             |
|     products  |           |             |             |             |
|     for CY    |           |             |             |             |
|     2002      |           |             |             |             |
|     totaled   |           |             |             |             |
|     \$42      |           |             |             |             |
|     million   |           |             |             |             |
|     compared  |           |             |             |             |
|     to \$50   |           |             |             |             |
|     million   |           |             |             |             |
|     from the  |           |             |             |             |
|     Egyptian  |           |             |             |             |
|     data      |           |             |             |             |
|     (CAPMAS). |           |             |             |             |
|     The       |           |             |             |             |
|               |           |             |             |             |
|    difference |           |             |             |             |
|     might be  |           |             |             |             |
|               |           |             |             |             |
|    attributed |           |             |             |             |
|     to the    |           |             |             |             |
|     freight   |           |             |             |             |
|     costs.    |           |             |             |             |
|               |           |             |             |             |
| -   \*\*      |           |             |             |             |
|     Extra     |           |             |             |             |
|     fees      |           |             |             |             |
|     represent |           |             |             |             |
|     service   |           |             |             |             |
|     tax,      |           |             |             |             |
|               |           |             |             |             |
|    commercial |           |             |             |             |
|     and       |           |             |             |             |
|               |           |             |             |             |
|    industrial |           |             |             |             |
|     profits,  |           |             |             |             |
|               |           |             |             |             |
| miscellaneous |           |             |             |             |
|     expenses  |           |             |             |             |
|     vary from |           |             |             |             |
|     one       |           |             |             |             |
|     product   |           |             |             |             |
|     to        |           |             |             |             |
|     another.  |           |             |             |             |
|               |           |             |             |             |
| Source: Trade |           |             |             |             |
| data from the |           |             |             |             |
| Central       |           |             |             |             |
| Agency for    |           |             |             |             |
| Public        |           |             |             |             |
| Mobilization  |           |             |             |             |
| and           |           |             |             |             |
| Statistics    |           |             |             |             |
| (CAPMAS),     |           |             |             |             |
| Cairo, Egypt  |           |             |             |             |
+---------------+-----------+-------------+-------------+-------------+

The following table illustrates suppliers of consumer foods and edible
fishery products:

+---------------------+----------------+---------------+---------------+
| ***SUPPLIERS OF     |                |               |               |
| CONSUMER FOODS AND  |                |               |               |
| EDIBLE FISHERY      |                |               |               |
| PRODUCTS***         |                |               |               |
+=====================+================+===============+===============+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Fresh Veg.          | China          | 95%           | 0 %           |
+---------------------+----------------+---------------+---------------+
| Frozen Vegetables   | Netherlands    | 70%           | 0%            |
|                     |                |               |               |
|                     | Saudi Arabia   | 30%           |               |
+---------------------+----------------+---------------+---------------+
| Dried Vegetables    | Mynamar        | 36%           | 2%            |
|                     |                |               |               |
|                     | Canada         | 21%           |               |
|                     |                |               |               |
|                     | China          | 7%            |               |
+---------------------+----------------+---------------+---------------+
| Fresh Fruit         | Lebanon        | 24%           | 8%            |
|                     |                |               |               |
|                     | Chilly         | 13%           |               |
|                     |                |               |               |
|                     | Syria          | 9%            |               |
|                     |                |               |               |
|                     | Italy          | 9%            |               |
|                     |                |               |               |
|                     | France         | 5%            |               |
|                     |                |               |               |
|                     | Greece         | 5%            |               |
+---------------------+----------------+---------------+---------------+
| Dried Fruit         | Turkey         | 32%           | 2%            |
|                     |                |               |               |
|                     | Syria          | 19%           |               |
|                     |                |               |               |
|                     | Greece         | 12%           |               |
|                     |                |               |               |
|                     | Iran           | 11%           |               |
+---------------------+----------------+---------------+---------------+
| Nuts                | Turkey         | 60%           | 22%           |
|                     |                |               |               |
|                     | India          | 18%           |               |
+---------------------+----------------+---------------+---------------+
| Coffee              | Indonesia      | 40%           | 0%            |
|                     |                |               |               |
|                     | Brazil         | 28%           |               |
|                     |                |               |               |
|                     | India          | 8%            |               |
|                     |                |               |               |
|                     | Vietnam        | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Spices              | India          | 39%           | 0%            |
|                     |                |               |               |
|                     | China          | 21%           |               |
|                     |                |               |               |
|                     | Syria          | 19%           |               |
+---------------------+----------------+---------------+---------------+
| Red Meat Prepared   | Brazil         | 81%           | 0%            |
|                     |                |               |               |
|                     | Argentina      | 9%            |               |
|                     |                |               |               |
|                     | Jordan         | 5%            |               |
+---------------------+----------------+---------------+---------------+

+---------------------+----------------+---------------+---------------+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Red Meat (fresh,    | Brazil         | 43%           | 0%            |
| chilled, frozen)    |                |               |               |
|                     | India          | 28%           |               |
|                     |                |               |               |
|                     | Argentina      | 20%           |               |
|                     |                |               |               |
|                     | Uruguay        | 3%            |               |
+---------------------+----------------+---------------+---------------+
| Bovine, offals      | U.S.           |               | 100%          |
| frozen              |                |               |               |
+---------------------+----------------+---------------+---------------+
| Canned Fish         | Thailand       | 93%           | 1%            |
|                     |                |               |               |
|                     | France         | 1%            |               |
|                     |                |               |               |
|                     | Indonesia      | 1%            |               |
+---------------------+----------------+---------------+---------------+
| Frozen Fish         | Netherlands    | 35%           | 5%            |
|                     |                |               |               |
|                     | United Kingdom | 16%           |               |
|                     |                |               |               |
|                     | Ireland        | 15%           |               |
|                     |                |               |               |
|                     | EEC            | 7%            |               |
|                     |                |               |               |
|                     | France         | 4%            |               |
|                     |                |               |               |
|                     | Germany        | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Cocoa Paste         | United Kingdom | 53%           | 0%            |
|                     |                |               |               |
|                     | China          | 32%           |               |
|                     |                |               |               |
|                     | France         | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Cocoa Butter        | United Kingdom | 88%           | 0%            |
|                     |                |               |               |
|                     | France         | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Cocoa Powder        | U.A.E.         | 21%           | 0%            |
|                     |                |               |               |
|                     | United Kingdom | 11%           |               |
|                     |                |               |               |
|                     | Malaysia       | 8%            |               |
|                     |                |               |               |
|                     | Netherlands    | 7%            |               |
|                     |                |               |               |
|                     | France         | 5%            |               |
|                     |                |               |               |
|                     | Indonesia      | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Other Food          | United Kingdom | 68%           | 9%            |
| Preparations        |                |               |               |
|                     | Germany        | 4%            |               |
|                     |                |               |               |
|                     | Netherlands    | 4%            |               |
|                     |                |               |               |
|                     | Australia      | 3%            |               |
+---------------------+----------------+---------------+---------------+
| Biscuits / Bread /  | EEC            | 15%           | 26%           |
| Waffles             |                |               |               |
|                     | United Kingdom | 12%           |               |
+---------------------+----------------+---------------+---------------+
| Biscuits / Bread /  | Germany        | 9%            |               |
| Waffles             |                |               |               |
|                     | Italy          | 8%            |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 6%            |               |
|                     |                |               |               |
|                     | France         | 2%            |               |
+---------------------+----------------+---------------+---------------+

##  

+---------------------+----------------+---------------+---------------+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Jams                | Poland         | 21%           | 16%           |
|                     |                |               |               |
|                     | France         | 20%           |               |
|                     |                |               |               |
|                     | Belgium        | 14%           |               |
|                     |                |               |               |
|                     | Hungary        | 12%           |               |
|                     |                |               |               |
|                     | Bulgaria       | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Juices              | Spain          | 25%           | 7%            |
|                     |                |               |               |
|                     | U.A.E.         | 9%            |               |
|                     |                |               |               |
|                     | Cyprus         | 8%            |               |
|                     |                |               |               |
|                     | Thailand       | 7%            |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 2%            |               |
+---------------------+----------------+---------------+---------------+
| Sauces / Mayonnaise | India          | 18%           | 37%           |
| / Ketchup           |                |               |               |
|                     | Netherlands    | 13%           |               |
|                     |                |               |               |
|                     | France         | 6%            |               |
|                     |                |               |               |
|                     | Germany        | 4%            |               |
|                     |                |               |               |
|                     | Pakistan       | 4%            |               |
+---------------------+----------------+---------------+---------------+
| Ice Cream           | France         | 38%           | 21%           |
|                     |                |               |               |
|                     | Germany        | 17%           |               |
|                     |                |               |               |
|                     | EEC            | 9%            |               |
+---------------------+----------------+---------------+---------------+
| Beer                | Ireland        | 100%          | 0%            |
+---------------------+----------------+---------------+---------------+
| Wine                | EEC            | 44%           | 8%            |
|                     |                |               |               |
|                     | Italy          | 26%           |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 17%           |               |
+---------------------+----------------+---------------+---------------+
| Pet Food            | France         | 18%           | 13%           |
|                     |                |               |               |
|                     | Australia      | 16%           |               |
|                     |                |               |               |
|                     | Germany        | 13%           |               |
+---------------------+----------------+---------------+---------------+
| Pastas              | Italy          | 29%           | 0%            |
|                     |                |               |               |
|                     | Indonesia      | 16%           |               |
|                     |                |               |               |
|                     | Saudi Arabia   | 11%           |               |
|                     |                |               |               |
|                     | China          | 8%            |               |
|                     |                |               |               |
|                     | Turkey         | 8%            |               |
+---------------------+----------------+---------------+---------------+
| Cheese              | Netherlands    | 56%           | 1%            |
|                     |                |               |               |
|                     | Denmark        | 3%            |               |
|                     |                |               |               |
|                     | France         | 2%            |               |
|                     |                |               |               |
|                     | United Kingdom | 2%            |               |
+---------------------+----------------+---------------+---------------+
| Butter              | New Zealand    | 60%           | 0%            |
|                     |                |               |               |
|                     | Australia      | 20%           |               |
+---------------------+----------------+---------------+---------------+

+---------------------+----------------+---------------+---------------+
| ***PRODUCT***       | ***LARGEST***  | ***MARKET***  | ***U.S.       |
|                     |                |               | MARKET***     |
|                     | *              | ***SHARE      |               |
|                     | **SUPPLIERS*** | (%)***        | ***SHARE      |
|                     |                |               | (%)***        |
+---------------------+----------------+---------------+---------------+
| Milk Powder         | New Zealand    | 16%           | 5%            |
|                     |                |               |               |
|                     | Poland         | 15%           |               |
|                     |                |               |               |
|                     | Sweden         | 14%           |               |
+---------------------+----------------+---------------+---------------+
| Pasteurized Eggs    | France         | 51%           | 28%           |
|                     |                |               |               |
|                     | India          | 18%           |               |
+---------------------+----------------+---------------+---------------+

*Source: Central Agency for Public Mobilization and Statistics (CAPMAS)*

## 

## 

# IV. BEST PRODUCT PROSPECTS

# A. Products in the market, which have good sales potential:

\- Dressings, sauces and seasonings

\- Apples

\- Nuts and dried fruit

\- Juices

\- Salted snacks and potato chips

\- Mexican food items

## B. Products not present in significant quantities, but which have good sales potential: 

\- Microwave popcorn

\- Cheese

\- Candies

\- Baking mixes

\- Topping

\- Pudding sauces

\- Canned shrimps (not available at all)

### C. Products not present in supermarkets because they face significant barriers:

\- Wine (high custom tariff rate)

\- Beer (High custom tariff rate)

\- U.S. high quality beef (a maximum of 7% fat content on imported beef)

\- Turkey (modest quantities of processed turkey are imported)

# V. POST CONTACT AND FURTHER INFORMATION

####### 

####### Mailing Address

Office of Agricultural Affairs

Unit 64900, Box 22

APO AE 09839-4900

Tel: 011 (202) 797-2388 / 2389

Fax: 011 (202) 796-3989

E-mail: [AgCairo@fas.usda.gov]{.underline}

Web page: www.usembassy.egnet.net

Other References: [www.fas.usda.gov (Country,Egypt,Reports)]{.underline}

\- Trade Policy Monitoring Report / Report no. EG3004

\- Food and Agricultural Import Regulations and Standards (FAIRS 2003)
Report no. EG3019

\- Exporter Guide / Report no. EG3023

##