Tobacco Documents Online

-2- MAIN POINTS FROM DELEGATE PRESENTATIONS Amatil Despite the already severe pressures on direct smoking and health, the increasing social attack is seen to be the greatest problem facing the industry. Industry agreement with Government is that no cigarette is to be sold above IBmg. The SWAT is now approximately 11 mg - but this is not a feature of discussion with Government. Publication of CO yields wil~ take place this year, but they will not be included in the Voluntary Code for packet labelling at this stage. The main motivation of Wills R&D is in connection with Excise Tax. The continued drive towards lower weights is now giving problems with ends stability, taste/smoking quality and puff number. There is a wish to increase the interaction with GR&DC, beyond density reduction. The main interest relates.to processing rather than basic studies, but consumer research methodology is important - especially for social pressures. Blended products are increasing in importance in Australia. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290318

-3- BATCF The German market is recovering since the down-turn in 1982. The BATCF response of eliminating longer-term work and concentrating on cost reductions and quality improvement still continues - but the plan is to revert to longer-term work in 1985/6, albeit more strongly related to product and process application than to basic studies, A high level of interaction with GR&DC programmes and projects extends virtually across all work areas. There is also good interaction with B&W in the areas of project SHIP and flavour research. BATCF see a continuing reliance on GR&DC for basic research. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290319

-4- USA The main thrust in this area is to gain market share through the introduction of new products supported by technology and innovation. A principle priority for existing products is to improve and maintain smoking quality. In order to compete in the emerging economy segments, the achievement of cost reduction, and improvements to economics through manufacturing integration, are of strategic importance. lhe joint project efforts in support of SHIP are crucial to the fundamental understanding of harshness reduction and smoke chemistry control. GR&DC support for new product projects over the last year, including ARIES, GEMINI and $|im cigarettes, has improved the quality and timing of key efforts. The attempt to produce good tasting products through blend modification and processing has resulted in improved blends which will be incorporated into products - some of which are currently under test market. BeYond this, exciting new posslbilltles exist for nicotine control, pH control and re-constltutlon opportunities. Longer-term objectives (which are not that long!) include reduced sidestream and self-extinguishing products. Input from GR&DC wi|| continue to be sought on future technology trends, directions and opportunities. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290320

-5- ITL Main areas where continued close interaction with GR&DC is sought are: (t) (ii) Biological: Factors that influence specific activity and the development of short-term tests for mutagenicity. Smoker Behaviour: There is a need to develop a working relationship between sensory a~sessment, smoker behavlour and product design. Also there is a need to develop a better understanding of swi tchi ng. The ITL puff duplicator is thought to have wider potential throughout the Group, but further development is required. The DELTA methodology is being applied, but needs more effort. The reason for the apparent failure of Rothman's Passport low-sidestream brand is being studied by ITL Marketing Department. Process: Areas of particular interest are improved tobacco utilisation,, reduced degradation, reduced loose ends and Imp.roved fill value. The work of GR&DC and other Research Centres on expanded stem and lamlna is being closely monitored. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290321

-6- SOUZA CRUZ With the exception of the Group Programme on Process Research, and the work for the Leaf Steering Committee, all effort is concentrated on short-term priorities - particularly cost reduction (greater use of local materials) and support to tobacco production and diversification. The longer-term work of GR&DC is closely monitored - with particular interest in Project RIO, reduced sidestream and smoker behaviour. The series of fruit extracts developed by the Flavour Project has led to the possibility of modifying cigarettes to give (a) a 'new' taste, and (b) reduced butt and sidestream aroma. There has been .close collaboration with GR&DC, in the evaluation of butt and. sidestream aroma (Project STALEMATE). In view of the high cost of filters in Brazil, there is continuing interest in polypropylene. A joint venture with Hercules is under discussion. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290322

GUIDELINES FROM MARKETING CONFERENCE Any successful brand, existing or new, must fulfill three fundamental consumer needs: - Physical eg taste, nicotine - Emotional eg brand image - Rational eg the total proposition must be meaningful. Marketing ident|fied six specific areas that demand attention. The R&D response to these areas is summarlsed below: Brand Reassurance (Image, design, presentation, smoking quality) and Smokin9 Pleasure and Satisfaction (Relative full flavour) - Higher free-base nicotine - Higher nicotine/tar ratio - Project SHIP - "Consumer-Demand Responsive" (CDR) and other novel filters. - Thermoformable paper/embossed filters - Front-end lift - Sallvation/dry mouth/after-taste. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290323

-8- Perceived Personal Reassurance (Smoke Deliveries re S&H) - Low carbon monoxide - Project RIO - LoH smoke retention. Social Concern (Nuisance - sidestream/room/butt odour) - Ecusta vs de Mauduit papers - Low-weight tobacco rods - Aroma masking/modifying flavours - CRA studies of social pressures. Val ue-for-Mone~, . (Price related motivation) - Project RUGBY (high expanded tobacco content) - Low-weight products (other means) - Cheaper/better filters. Female Smokers (Growing importance) - CRA studies - Ultra-sllm c|garettes? BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290324

-9- SPECIAL DISCUSSION TOPICS Smoker Behaviour There is a need to improve the link between, and the mutual understanding of, market research and scientific research on smoker behavlour. Marketing research knowledge should be used to give direction to fundamental research. Areas of major significance are: - switching - starting - consumer response to new products - influence of design on smoking behaviour - research methodology Experience of BATCF should be used with respect to consumer response to new products, and to their approach to research met hodol ogy. Nicotine The agreed background was: I. The toxicity of nicotine will continue to be questioned. 2. There will continue to be claims that nicotine is "addictive". o o ,~ BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290325

-10- The view that smokers seek or acquire a specific dose of nicotine is not universally accepted. There is a likely tolerence window for nicotine which does not figure in isolation but in the context of percelvd strength, taste, flavour irritation, impact etc. An attempt should be made to establish whether smokers smoke for (a) transient peak effects threshold base-line levels throughout the day. A study of the effects obtained through chewing "nicotine-.gum" might be relevant. Despite considerable research over many years, the role of nicotine in smoking is not understood or universally accepted (cf 1984 book edited by D J K Balfour). Some insight might come from animal studies in which nicotine is compared with other stimulants of nerve response. A direct method of enhancing nicotine in tobacco smoke is through additions of nicotine oxide or nicotine salts. There are, however, other less overt means of influencing nicotine transfer from the product to the smoker - and the commercial viability of such means should be pursued, using the extensive knowledge already existing in Germany, o 0 BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290326

-11- Sidestream/Amhient Smoke Despite any unresolved issues of marketing, it must be encumbent upon the tobacco industry to find ways of reducing sidestream and ambient room smoke. The modified (Ecusta and de Mauduit) papers lead to reduced visible sidestream smoke and reduced ambient particulate smoke, but gas-phase components such as CO and NO are, if anything, slightly increased. Serious efforts must be made to counter this trend. Sidestream R&D should be extended in the broader context of the total "social" problem, ie to room aroma and butts. It was confirmed that this is a high-priority area - with the end-objective of developing products that give the smoker a fully satisfactory product while at the same time giving t~e non-smoker less cause for perceived concern. Work at GR&DC should be extended to include US-blend and German-blend tobaccos. There is need for greater understanding of social pressures on smokers. The Canadian experience with 'Passport' is relevant. The need for a self-extinguishing cigarette continues to be primarily of interest in the USA. Low Retention Products Despite the severe technical issues, and the lack of an immediate Marketing proposition, products that give rise to a low retention of smoke in the lung must be an important goal - given the allegations of the medical/scientific opinion. Current GR&DC work must be pursued as a priority. The performance of Maryland tobacco must be elucidated. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290327

-12- Reduced Dryness/Improved After-Taste Attempts should be made to reduce these negative attributes of modern low-delivery cigarettes. The methodology of quantifying the parameters needs to be developed. Front-End Lift The concept that consun~ers recognise, and react adversely to, the relatively weak early puffs of low-delivery products should be validated by CRA-type research. At the same time, past GR&DC work should be actively reconsidered with the view to establishing design principles. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290328

-13- PROGRAMME REVISIONS 1985-87 The revisions agreed at the June Programme Review were generally confirmed - subject to the additions/modifications agreed in the discussions with Marketing. 01 Biological Research No major comments. 02 Smoke Research (i) Combustion: the practical utility of the theoretical models must now be demonstrated (including ultra-slim and front-end lift products). (ii) Sidestream: Research into the mechanism of sidestream generatlon/reduction, and the development of prototype products must be pursued in parallel. Technical. solutions must be found for sidestream Irrltancy and room odour, and also for butt aroma, (ill) Filtration: There should be increased effort on (a) Enhancement of flavour and sensory effect of a given quantity of smoke (b) "Consumer-Demand Responsive" products. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290329

-14- 03 Smoker Behaviou" Nicotine remains a top priority. There should be increased effort on low-retention products. Salivation/mouth dryness/after-taste should be researched. 04 Flavour Research The past 3-4 years of research must now be turned towards useful applications. The Svenska Tobaks work must be validated or terminated. A parallel effort to Project SHIP should be initiated for Virginia products. O5(A) Process: .Physics The work must be directed towards commercially useful applications eg end stability, hot collapse, ultra-slim cigarettes. ,05.,( B ) Pr,ocess : Chem.i st rx The crlt|clsm of the June Review Meeting was confirmed le the work must have clear worthwhile objectives. Operating Companies were pressed to advise their priority concerns. (A link with "SHIP-type" Virginia project should be considered.) o BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290330

-15- O5{B) Process: Expansion The commercial potential (to BAT) of the new generation processes must be validated (in either product or economic terms). 0,5.(C) Novel Cigarette Technologj< The awareness of operating companies must be maintained or increased. .06 Ana,l.~sis/Test Method Development No comment. o BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290331

-16- GENERAL DISCUSSIONS Technical Exchange Herr Rittershaus presented an account of three interesting developments from BATCF: I. Control of cigarette makers by on-line monitoring of rod pressure drop - which is more relevant to the control of modern products than the conventional weight control systems, 2. Ultrasonic spraying of casings and additives - greater uniformity of coating and to a lower loss of filling power. The 'Bird-Eye Expanded' (BEX) system - ie improvement of filling power of expanded CRS (STS) by orienting stems Clongltudlnally) before cutting. Following a general update by Mr Heard on his activities on Biotechnology, Dr Seehofer described plans withln BATCF to exploit commercially the past 3-4 years research on cell culture - which has led to an excitlng new route to augment the nicotine or flavour content of tobacco biomass, Dr Slquelra described the latest positlon of the Souz Cruz work on tobacco curing and processing. A full report will be issued shortly. Dr Dunn explained the current ITL wish to widen .the debate ~ with government on smoking issues - particularly on the many o anomoIles that exist in the various areas of smoking and "J BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290332

-17 - health, and on the role of smoking in everyday life. If finally approved by ITL Management/Legal, t.,Is would most likely involve the other manufacturers (via CTMC). Mr Denton described the latest weight reduction developments made by AMATIL R&D/Production Departments. Mr Nicholls .described the recent use of New Infrared (NIR) analysis in grade selection for filling power improvement. report is In preparation. A summary was given of the thinking and practice on consumer testing of products (eg micro-marketing and related activities). The need for research into the .techniques used in market research was implicit in the discussion. Dr Blackman described the recent short programme of work (Project STALEMATE) to ameliorate the odour of fresh and stale butts, and room odour generally. The findings of $ouza Cruz, that fruit extracts are ef(ective, were confirmed. Dr Blackman summarised the latest position on sidestream research and product development at GR&DC and Dr Dunn summarised the experience to date with Rothmans' launch of Passport - basically high interest but almost zero re-purchase. ~peclallst Meetlng~. In October 19B4 there will be a F1avourlsts Workshop in Hamburg and a Swirl Conference in Couisville, A Biological meeting was agreed for 1985, probably back-to- back with the May/June GR&DC Programme Review at Southampton. BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290333

-18- GR&DC will host a meeting of specialists concerned w~th the practical application of chemometric techniques. It is not anticipated that all companies will send representatives, A Smoker Behaviour conference in Hamburg will be considered for 1986. The venue for the 1985 Research Conference will be decided later, Australla is most likely if it is outside the UK,. The suggested date is 2-6 September. External Publications It was agreed that staff should be encouraged to pub|Ish selected research which is non-commercial/political, Staff Exchanqe Operating companies and GR&DC are encouraged to exchange/second staff - both for career development/job satisfaction and to faci]|tate technology transfer throughout the Group, L C F BLACKMAN 15/10/84 BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290334

198211983 CONFERENCES Tobacco Processing Seminar U.S.A. Research Conference Canada Production Conference U.K. Combustion - Fundamental Mechanisms U.K. Environmental Smoke U.K. INTERBAT/Telecommunications U.K. Smoker Behaviour U.S.A. Tobacco Processing Seminar Germany Biological Studies U.K. GR&DC Programme Review U.K. Computer Modelling U.K. Research Conference Brazil Production Conference Kenya Flavourists' Workshop U.S.A. January 1982 August 1982 November 1982 December IgB2 March 1983 March 1983 April 1983 May 1983 May 1983 May 1983 July 1983 August1983 November 1983 November 1983 1984 CONFERENCES Near Infra-Red Workshop U.K. Biological Studies U.K. Nicotine U.K. GR&DC Programme Review U.K. Structured Creativity Conference U.K. Smoking Behaviour/Marketing Canada Research Conference U.K. Swirl Conference U.S.A. Production Conference Malaysia March 1984 April 1984 June I984 June 1984 June 1984 July 1984 September 1984 October1984 November 1984 PROPOSED 1985 CONFERENCES Chemo~trics Biological Research/Marketing (theme to be determined) Flavourists' Workshop, or Flavour Applications GR&DC Programme Review Research Conference BAT Industries document for Province of British Columbia 9 November 2000 BAT INDUSTRIES 00290335