Daltex Corporation

Hesham S. El NaggarVice Chairman

• Brief History of Daltex into the UK– Daltex supplier to the UK since 1964– Daltex Serving Tesco for 36 years– Daltex is serving the UK with a range of products on

direct base • Citrus, grapes, peppers, onions

– Daltex is the first supplier to achieve 100% service level on direct sourcing to Tesco

– Daltex currently the biggest shipper of Potatoes from Egypt in to the UK market

UK… COUNTRY & CULTURE

Up market but with a lot of Challenges &Particular BUT with Clear Requirements

UK… Country & Culture

• Disciplined and Systemized• Punctual • It is up market in terms of prices but also

in terms of costs• Cargo & shipping

– Cargo into UK is higher in volume than cargo out of UK– Shipping is limited in short transits for fresh produce – Limited Capacity offered from lines– Every step is costly, even times of days have different

costs ex: in air freight– Supplier must always make allowance for the lead time

for products

UK… Country & Culture• Trucking is easily managed and available• Quality & Pest Control

– Quality is key element of supply – As a supplier you have to be up to date to access of all

regulatory changes of MRL for the UK as a market and for each retailer.

– For potatoes in particular, there are special packing stations authorized to handle Egyptian Potatoes

UK… Country & Culture

• Competitiveness– Market is very competitive. Mecca for all quality and

price seekers– UK however, usually has a more or less constant market

with minimal fluctuations above or below the norm – In Fresh Produce every year is treated uniquely

UK… Country & Culture

• Finance and Facilities – It is a high value market in price but requires a lot of

long term investment from the suppliers in order to serve such a market

• Tax & Tariffs– EU has a quota of time and volume for every product, it

is clearly indicated and easy to understand and work with. Now after the signature of the EU-Egyptian partnership agreement Egypt enjoys a lot of prefrences

• Distribution – is facilitated within UK but very expensive to come from

Egypt via mainland Europe

SERVING TESCO

Tesco is Tesco…A Giant that Deserves AttentionFor every 5 GBP spend in a household in the UK

1 GBP is spent in a Tesco store

Tesco… The retailer• Tesco has low flexibility but with reason.

Flexibility lies within the system• Quality & Quality Control & Pest Control

– Tesco requires high quality of products cosmetic. It has it is own quality, health and safety requirements that are a challenge to meet.

– They have their own supply infrastructure manifested which is precise i.e. manual, procedures & technical specifications

– Tesco approved service providers have to ensure that products comply with the Tesco specs before delivery into depots

Tesco… The retailer• Wrapping & Packing & Delivery

– Tesco have their specification on packing materials, dimensions, weights, labels, colors all of which serve the range of products & quality groups starting from value pack all the way to the finest

– From Egypt shipping is usually loose such as carton of citrus or bags of potatoes. Pre Pack for direct delivery to Tesco in some products like Grapes, Peppers citrus

– Smaller packs and packing involving poly bags or other non permeable material is done in the UK via a Tesco approved service providers

Tesco… The retailer• Marketing Practices & Pricing Policies

– Our business is mainly B2B so suppliers don’t get involved it the marketing as we know it

– Marketing is through promotion of new varieties or the introduction of new products

– Pricing as part of the marketing component to Tesco

Entering the UK…Serving Tesco

Thank you!