Tobacco Documents Online

Note for Territorial Directors Territorial Co-ordinators All Territorial Advisers I.B.U. Managers Guidelines on International Brands : TPM and Nicotine Deliveries At the last n~eting of the MPDC on 21st February 1979, the following was agreed and minuted: "Attention was drawn to the deliveries of many of the Group's International brands, and to the fact that in several instances these are sufficiently high to leave the bra.~ds' positioning noticeably exposed in a potential league table situat.ion. It was felt that firm guidelines on delivery levels should be established, and that the Group should be less conservative in its a.~roach to the reduction of the deliveries of international brands. Disparitiesin tar/nicotine ratios around the Group are also an unwelcome feature of current products, and steps will be required to remedy this position. The c~velopgmnt of appropriate guidelines will call for concerted action on the part of Marketing Services, the I.B.U.'s and all relevant territorial advisers." In view of ~he m~unting ooncern and action cn health issues by Governments and international or~anisations such as WHO, L~CTAD etc. and, indeed, likely competitlveresponse, it is essential that export and locally manufactured products should yield acceptable deliveries both in the eyes of public organisations, and in the interest of reassuring smokers the~nselves. These deliveries should be available at levels t41idl do not put oJr international brands at risk in the event of League Table pablications, or other forms of pablicity which may be generated at national or international levels. Furthermore, publicity which highlights differences between export an~ local deliveries, to the detriment o~ the latter, Js likely t~ increase, and could ~ii have an increasingly a~verse effect on the total B.A.T. business. BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290445

-2- BAT (UK&E) Vir@inia Brands Certain steps have already been taken by BAT (UK&E) to reduce deliveries of export products, and other reductions are being planned. The details are shown in Appendix A, but these can be summarised briefly as: RedUctions during 1979, to achieve a range of 15 to 19 m~. tar and i.i to 1.4 nicotine for: Benson & Hedges: Special Filter (reduction of 4 m~. tar), Luxury Blend (reduction of 4 mg. tar). State Express 555 Filter Kings (reduction of 8 m~. tar). John Player Special (reduction of 4 m~. tar). Players Gold Leaf (reduction of 10 rag. tar). By 1980 DJ Maurier Superkings will have been reduced t~ 22/1.6 (reduction of 2 in 1979). The. current low~r-delivery.brands Benson & Hedges Luxury Mild (reduction of 6 m~. tar in 1979} and Special Mild (reduction of 4 m~. tar in 1980) will be reduced by these changes to single-digit figures, 9 m~. tar and 0.8 rag. nicotine. BWIT - U.S. Brands The great majority of Export U.S. products have already had their deliveries low, red and the only oases in which reductions from the current levels are planned are: Viceroy Lights/Milds to ii rag. tar in 1979. Kent KS, [8 and De Luxe a~all reductions to bring these brands within the I0 to 14: rag. tar range. Kool International a ~all reduction to II rag. tar in 1979. C~ ~-o BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290446

-3- Bearing in mind its ownership and strategical responsibility for our International ~:ands, the Group is keen to ensure: (a) that locally manufactured products are as closely aligned as possible with export products, as far as TPM and nicotine deliveries are concerned. " (b) that this alignment is arrived at as quickly as possible, with technological assistance readily available frcm the Centre, wherever this is needed by Territorial Teams or the Associated Companies themselves. (c) In general Group policy is such that urgent attention should be given by companies to the t~stin~ and introduction of products with major delivery reductions wherever there is a major discrepancy between export a~d local product, rather than to engage upon a gradual step by step progranm~ with minimal levels of reduction - e.g. on a 1 or 2 rag. ~M basis - over a period of years. Action Measures should be taken by ccmtoanies to develop product prototypes for all international brands so as to achieve deliveries which are close or identical h) BAT (UK&E) and ~IT Export deliveries, wherever this has not been achieve4 so far. Steps shDuld be taken to conduct thorough consumer testing, embracing both ~rrent products and competitive ones where possible. Short term testing should certainly be done, and extended to a longer term test whenever necessary. The overall aim here will be to achieve product acceptance of the prototype so as to gain reasonable acceptance for it a,~g existing consumers, and not set the brand at serious disadvantage visa vis the original version with its regular smokers. • Results should be reviewed in ~ollaboration with both the Territorial Advisers and the relevant I.B.U.'s, or BHIT in the case of U.S. Brands. In those cases where, aEter clue eunsideration oE all aspects product quality, product perception and the local marketir~, research and [~blicity circumstances, the prototype under test is rejected at a significant level, then additional action should be taken. Product development should then proceed to create ~urther prototypes, again based substantially on the agree~ low, red product deliveries, m~dified or improved i~ necessary .t~ enhance [for example) taste/satisfaction characteristics. BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290447

-4- Co The figures of actual deliveries of locally manufactured International brands in the second half of 1978 are shown in (x~nparison with the export version target figures in Appendix B (i) Virginia a~d B (2) U.S. brands. with very few exceptions the deliveries of locally manufactured International products exceed the export v~rsion target, in some cases by over I0 mgs. of tar. Markets ~hich require'particular attention are: - Malaysia, for Benson & Hedges SF, Luxury Blend, Luxury Mild, Special Mild, State Express 555 ~K, 555 International, Players Gold Leaf, and also John Player Classic and Capstan Filter have no export equivalents. - Singapore, for. Benson & Hedges SF and Special Mild, State E(press 555 FK and 555 International, JPS and Players Gold Leaf.. Consideration will also have to be given to John Player Special Mild and Capstan which have no export equivalents. - South Africa, for Benson & Hedges SF, Luxury Blend and Special Mild, State Express 555 FK, and Lucky Stike Plain and Filter. - West Germany, for Benson & ~edges SF, Kent de Luxe, and Lucky Strike Plain. Though these markets are singled ~ut, it should be appreciated that nearly all .the ~mpanies listed in Appendix B as mam/facturin~. International brands, have at least one International product which exceeds the export version target; A tedunical note should follow on guidelines regarding tar/hie ratios, preferably in PMWNF terms. P.L. Short BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290448

APP~g)IX A Intermltional Brands. Export Versions Current Deliveries and Targets Current .~ Nic. Virginia. (brands also.locally mamlfactured overseas) Benson & Hedges SF Benson & Hedges Lux. Blend Benson & Hedges Lux. Mild Benson & Hedges Spec. Mild State Express 555 Filter Kings 555 ~nternational Du Maurier Super Kings 19 " i. 2 19 1.3 15 1.2 13 0.9 26 2.1 • 18 1.4 28 2.0 John Player Special 19 1.3 Players Gold Leaf 28 1.8 Embassy 19 1.4 T____~ Inter~ed PM~NF Nic. T~irg.. 15 i.i By end1979 • 15 1.3 By end1979 9 0.8 By e.~1979 9 0.8 .1980 18 1.4 By er~1979 26 1.0 24 1.7 22 1.6 July 1979 Oct 1979 Mid 1980 15 1.3 Reserve development dur~Jg 1979 18 I. 4 Probably lard 1979 BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290449

APPENDIX A (cont.) -2 - Current ~ Intended PMWNF Nic. P~F Nic. ~ (brands also locally manufactured overseas) Viceroy KS 14 I. 0 16 i. 1 • LS 16 I.i 16 i.i Viceroy Lights/Milds KS NA NA 14.0 I. 0 q 99 NA NA 15.0 i.i Kent KS 16 1.2 15 i.i~ LS 15 I~i 14 1.0 De Luxe 15 I. 1 16 i. 2 Kent Golden Lights KS NA NA 8' 0.7 Kool KS 16 1.3 16.5 1.4 LS 16 1.3 16.5 1.3 99 NA NA 16.5 1.3 KOOI International 12 1.0 13 I.i Pall Mall LS NA NA 19 1.4 Superlongs 16 i. 3 16.5 I. 3 Pall Mall Plain KS 26 1.7 Lucky Strike Flavor Flo KS 18 1.29 16 1.2 LS 16 1.2 Lucky Strike Filter KS 16 1.2 16 I.I Lucky S£rike Plain PS NA NA 21 1.5 Note: Where NA is shown, further data from B&WIT is awaited. Reduction to flings in '79 Further re- duct ion to 10-14 m~ tar range in period 1979-82 Reduction to llmg tar '79 O C~ ~D --4 BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290450

• ! (1) INTERNATIONAL VII~INIA BRANDS - LOCAL MANUFACTURE - Delivery. figures July - December 1978 from Project Lieutenant. - Where Project Lieutenant data is not o~llected, but other current PDL Southampton figures.are available these are shown in brackets. - Where several readings are..available, the m~st recent figure is shown. - 'NA' is shown where the brand is manufactured, but is not covered by. Project Lieutenant or. hy other current PD5 Southampton figures. • - Off-shore manufacture for BAT UK and E is not included. BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290451

Sel.I. Super Other" Va PLu' Kings C~rr. C~rr. 3~/~. 3 • NA i LS 9,/0,8 ~/~.? •. ........... NA JPS ,ucts are Eive~lo BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290452

,B&H Brand Spec o '. Filt. Exp. Target*i 1.5/1.1 B & HI B & H B & Hi B & H Lt~; Spec. Lux. Super ]~lemd Mild , Mild Va FLu ~5/~.~ ~ ,~ c~-~. 9/0.8 9/o.8 ( E~. ~9/1.6 ~er'~. i Sex'w'. Curt. ~ Cu~r. ~ 18/1 555 Int. Curt. t C~rr° 18/1.~ I BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290453

I Kool Super-'. Kool • Int. lo~gs i Viceroy Vic. ~ Ext. LiEhtsl Mild K~nt NA De Spec. Luxe Mild ts Newport Ralei ~61~.~ ~"- ~81o.7 - itinued ~ KS N& NA 18/~.5i 7/0.6 NA ~ NA : !7/0.7 ~l ~26/1,2 NA , NA BAT Industries document for Province of British Columbia 13 November 2000 BAT INDUSTRIES 00290454