PETpla.net Insider 03 / 2010

REGIONAL MARKET REPORTS 11 PET planet insider Vol. 11 No. 03/10 www.petpla.net 1400 mio edible oil 600 mio water 500 mio non food 500 mio CSD A total of 3,000 million PET bottles were produced in Egypt in 2009. No confirmed figures are available for non-food applica- tions and the total of 500 million is an estimated figure..(Fig- ures in million bottles) (Source: PETplanet) Jars This is where the PET story in Egypt began, in 1982, when the Aquah Group went into production using their own Nissei ASB machines. Today this is still a lucrative business. CSDs 3000 mio Glas 500 mio cans 500 mio PET iThere was a total of 4,000 million CSD fillings in 2009. The market is shared by Coca-Cola and PepsiCo. (Figures in mil- lion fillings) (Source: PETplanet) As so often in the world, the story of CSDs is the story of the rivalry between the two big cola companies. PET filling began in 1988 and in the summer of 2009 both of these Ameri- can groups introduced the small PET bottle into the Egyptian market. Whilst PepsiCo decided on a 0.5l monolayer PET bottle with barrier properties Coca-Cola went for a 0.4l mul- tilayer PET bottle. Now the consumer has a choice between 0.4, 0.5, 1.0, 1.5 and 2.0l PET bottles. ). 0.2 litre refillable glass can be found in the poorer regions for just one Egyptian pound (about 0.2 US Dollars). In the city it is more the 0.33l glass bottle that is sold. The 0.4l PET bottle is sold to consumers at 2 Egyptian pounds. This means that the PET bottle sits in the same price category as the glass bottle. It seems a logical conclusion that the 0.4l bottle will be a success. Coca-Cola say that they have already sold 50 million such bottles of Coca-Cola. Other sources put this at nearer 5 million. As is so often the case, the truth probably lies somewhere in between. The multilayer preform is currently supplied from South Africa by Boxmore. In total about 550 million CSD fillings were car- ried out in PET during 2009. Some 45 % was Pepsi and 55 % Coca-Cola, including their Schweppes brand. Local suppliers play only a minor role. At the moment this PET sector is grow- ing at about 20% per annum. The Coca-Cola bottler operates 4 filling lines for PET and 2 new lines from Krones are sched- uled for April 2010, both of which are set up to run the weight- saving PCO 1881 neck. Bericap is the main cap supplier and preforms come from Al Aquah and Medco. About 75 % of fillings are still in glass and only 25% in single trip packaging such as cans and PET. However this relationship will change in PET’s favour with the arrival of the new filling lines. Edible Oil Edible oil, as the third entrant into the PET business, started in 1992 and now accounts for 1.4 billion bottles per annum (2009). It is estimated that half of these are pro- duced using the single-stage process. The market is more or less steady over the course of the year, i.e. not subject to the peaks and troughs seen in the beverage business. Nevertheless the market seems to be reaching saturation so that growth will depend more on a high rate of population increase. Oil is regarded as a basic foodstuff which obliges the Egyptian government to subsidise, for those in need, the cost of the edible oil. The three big players in the oil business are Savola, Arma and Iffco. Water In 1992 the first PET water bottle replaced a PVC bottle. At that time bottled water was ridiculed as an unnecessary luxury. Today water stands in second place behind edible oil in Egypt, with 600 million PET fillings per annum (700 million litres). Until just a few years ago Nestlé was the market leader with more than a 50% share, then came Coca-Cola and PepsiCo with their own water brands. In addition there is an almost countless number of local brands. PepsiCo and Coca- Cola each fill some 220 million water bottles, Nestlé does about 200 million and the rest is shared by the local brands. From the point of view of volumes filled, Nestlé would seem to be a lot stronger as they have their own home distribution system for the refillable PC containers used in water dispens- ers. Coca-Cola and Pepsi both use single trip PET for the larger containers, selling through normal distribution channels. The usual sizes on the market are 0.6l, 1l, and 1.5l - with the 1l pack taking the lion’s share. Juice 46 cartons 34,5 HDPE / Glass 34,5 Pouches In total 115 million litres of juices were sold in 2009. The lion’s share, at 40% , is packaged in cartons (Figures in million litres). The packaging mix will change with the introduction of the first PET bottle in 2010. (Source: PETplanet)