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Daltex Corporation Hesham S. El Naggar Vice Chairman.

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Presentation on theme: "Daltex Corporation Hesham S. El Naggar Vice Chairman."— Presentation transcript:

1 Daltex Corporation Hesham S. El Naggar Vice Chairman

2 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

3 UK… COUNTRY & CULTURE Up market but with a lot of Challenges & Particular BUT with Clear Requirements

4 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

5 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

6 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

7 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

8 SERVING TESCO Tesco is Tesco… A Giant that Deserves Attention For every 5 GBP spend in a household in the UK 1 GBP is spent in a Tesco store

9 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

10 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

11 Tesco… The retailer Marketing Practices & Pricing Policies –Our business is mainly B2B so suppliers dont 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

12 Entering the UK… Serving Tesco Thank you!

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