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Brown & Williamson

Kool Brand History

Date: 1999
Length: 11 pages
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Kool History
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KOOL BRAND HISTORY Where did the KOOL brand name come from and why is it spelled with a "K" instead of a In 1932, B&W saw an opportunity for a menthol cigarette in the U.S. B&W's advertising agency at the time submitted 350 possible names for this new brand. Of all the names submitted, "KOOL" was deemed to be the best because it was distinctive (with the "K" spelling), and it described the menthol taste of the product and was ,easy to remember. February 1933 - KOOL cigarettes were introduced and were the first nationally distributed menthol cigarettes. KOOL was offered in tins from 1933 through 1940. 1933 - The KOOL penguin (not named Willie yet) was introduced in the KOOL ads. KOOL Histor3, and Willie the Penguin A penguin was featured as KOOL's advertising symbol to create the aura of coolness. The KOOL pack was designed in the late 1950's and Willie was retired in the early 1960's. The decision to drop Willie was done in an etTon to modernize the pack design. Newspapers, magazines, billboards, and radio made Willie a popular model for KOOL. His likeness was also used on a variety of specialty items, such as salt and pepper shakers, key chains, cigarette lighters, and jewelry. While he was modeling for the salt and pepper shakers, Willie met his wife, Millie. National distribution, and first national advertising in magazines, August, 1933. KOOL carried B&W coupons, (like the RALEIGH premium coupons, and participated in the RALEIGH program) -- this was not mentioned in ads. • 1934 - First full year ofdistribution - magazine budget was approximately $300,000. Ads featured "Free coupons bring handsome gifts." Sales increased to 2.4 billion. • 1936 - Radio advertising was added. KOOL shared a network show with RALEIGH. • 1937 - Sales reached 4.0 billion; 2.5% of the industry. Media advertising expenditures totaled $600,000. 1938 - 1940 - New advertising copy introduced. Sales dropped each year - share dropped faster. In June, 1938, four extra coupons per carton were used, but were unable to affect sales trend. • 1940 - Radio advertising was dropped. August - prices ~ut to popular prices ($6.53 M). September - Coupons cut to two. PRODUCED FROM B&W WEB SITE 318020039 • 1941 - Advertising cut to $I00,000. New ad copy. Sales started to drift up with the industry. 1942 - About the same as 1941. Coupons were discontinued with the shortage &goods during WW II. • 1943 - All KOOL coupons discontinued. • 1943 - 1945 - Media expenditure increased to $500,000 - no coupons, no change in copy. Sales during the shortage period (war) just under 5 billion per year. 1946 - Sales dropped sharply aRer the shortage. Almost all advertising discontinued - all efforts went into RALEIGH. KOOL was given $400,000 for network radio - summer and fall - did not help. 1947 - KOOL sales started to climb and by 1953 had more than doubled the 1946 share of market. (Media expenditures grew and focused on spot radio until 1950.) KOOL was test marketed in Reynolds Metal Plyseal Pack-heat-sealed all-foil pack without cellophane. Initial test market Milwaukee. 1950 - Test market expanded to the balance of Wisconsin and Minnesota. Sales weakened and conventional pack reinstated in Milwaukee. Test completely discontinued in February 1952. Sales in test market areas remained among the poorest in the country for KOOL for years. 1951 & 1952 - Spot TV added in media mix with increased sales covering the cost. By 1952, radio and TV expenditures were equal. During these two years, a campaign in Sunday comics did not affect sales. 1953 - Sales increases slowed with industry. A new copy introduced which was used nationally when a network TV show was added. Ad budget was $3.2 million. Share of market was 2.9%, the highest to date. King size KOOL introduced into test markets at 1 ¢ per pack over regular size. 1954 - King size and regulars went into national distribution in March. Kings expansion backed with heavy advertising and expenditures jumped to $5,700,000, mostly in TV. Market share reached 3.4%. • 1955 - Expenditures were cut to $4,000,000 and sales leveled. 1956 - Copy changed - (Salem introduced first filter tip menthol in May). The filter was added to King size KOOL in September; however, the brand could not overcome Salem filter and year-end sales were down .5 billion; share dropped to 3%. PRODUCED FROM B&W WEB SITE 318020040 1957 - New copy; budget increased to $6 million; sales up slightly and share held steady. 1958 - Salem passed KOOL$ in sales; KOOL copy changed to imitate Salem - featured "Snow-fresh KOOL...Amedca's most refreshing cigarette." Budget cut to $5.2 million in 1958 and $4.5 million in 1959. Sales for 1959 were down to 12.7 billion and dropping. (Salem continued with original copy and spent over $I$ million with sales over 28 billion.) 1960 - Two important changes: package design refined and improved. The public kne~ KOOL was not a light menthol and copy was revised to focus on heavier menthol. The "Come up to KOOL" campaign was launched. Budget did not change; however, ads concentrated in dramatic TV commercials. Research indicated new copy did not connote a heavier menthol, but it did change sales trend dramatically and KOOL finished 1960 with 13.6 billion in sales--the highest in the brand's history. 1961 - Sales continued to improve during the first half. However, due to the lack of variety in commercials and overexposure, sales trended down second half. 1962 - New campaign introduced in April - one of the most effective cigarette campaigns ever used. KOOL's advertising theme promised a specific product benefit "extra coolness." The product, with heavier menthol content, delivered that promise. KOOL was the only U.S. domestic cigarette to make so specific and proven claim. Increased advertising budgets contributed to growth. Consumer acceptance of heavy menthol and TV commercial "problem/solution" approach worked well. Brand finished 1962 at 14.5 billion sold. 1964 - KOOL continued to move upward: sales rose to 16 billion units in 1963; 19 billion units in 1964. Market share went from 2.9 in 1962 to 3.8 in 1964. Sales in 1964 were 31% above 1962. Advertising spends increased 41%: 1963 - $6.2 m and $6.8 m; to 9.5 m in 1964. Television was and continued for several years to be the cartier medium. 1965 - According to Maxwell, 1964 vs. 1965, generic demand for menthol rose from 16.2% to 17.4%. BELAIR and KOOL were to only two brands to benefit from the increased size of the menthol segment. KOOL filter showed a 13.6% increase in share of segment. KOOL ended 1965 with a 4.9 share ofmarket. Sales increased from 19.0 billion to 23.2 billion. KOOL increased its share ofmarket to 5.5 during the 1st qtr. 1966. Ad appropriations also increased from $9 million in 1964 to $12 million in 1965 and 13.8 million in 1966. 1966 - TV continued as major medium; in May, all commercials were in color. 1966 - through June, KOOL remained growth leader in menthol segment against 10 new menthol entries since fall 1965. • 1967 - KOOL 100's were introduced. PRODUCED FROM B&W WEB SITE 318020041 1967 - Problem/solution slice-of-life TV ads continued. To get away from Salem look, new print format evolved. This was a cool scene with green trees, water and minute figures - it was unsuccessful. Special promotions were aimed at markets where KOOL had extraordinary share. Spanish, Black and Hawaiian markets were blitzed by radio. All national ads were aimed at 85 mm product with 70 mm holding its own from generic override. Year-end sales were 28.14 billion. KOOL gained 7.9% during the year to break into the 6% plus share at year end. • KOOL's main competitor, Salem, lost business at approximately 4.6% per year. In mid-year, Salem launched Super King Size. • Menthol segment expanded from 19.55% to 20.89% of total market. KOOL's share jumped from 1966's 36.4% to 1967's 38.3%. Salem lost 4.6% during 1966 and 1967. • KOOL was introduced in 99 ram. Detroit has a low extra-length development. Test product for KOOL Filter Longs was 99 mm x 24.8 ram, with cork tip and cellulose acetate filter. T&N delivery were slightly below average. Introductory ads were spot TV and newspaper. TV spots used an animated shape as KOOL spokesman and door-to-door surveyman in a dramatized situation. Two-color newspaper ads: "KOOL Filter Longs are Here!" Packaging for KOOL Longs looked like the brand family, which new used a smart appearance with simple canouche, side panels with caution notice and KOOL logo or full width strip of green. By year end KOOL 99s, like 85s, was the largest seller in its segment. The test for KOOL 99 determined: a satisfactory 99 mm product; a marketing plan which could be translated into a national effort; and sales trends for total KOOL and the effect of proliferation. 1968 - KOOL sales increased to 32.3 billion vs. 28.1 in 1967. KOOL Longs accounted for 1.5 billion; KOOL ended 1968 with 6.1% market share. Ad budget was increased to $18 million vs. $15.7 in 1967. Attempts to develop slice-of-life in short commercials failed. Various problem/solution executions were successful in stressing extra coolness benefit. Extra pressure advertising allocated to markets where KOOL was showing strong sales gains. Radio test run in LA where specific musical executions were created to correspond with each specific type of station, ethnic, classical, etc.. H_eavy ou_t.d_oor__al_s_£ ~cl~_d_ed ~__te_st.__Entire effort failed to increase sales and was ended. PRODUCED FROM B&W WEB SITE 318020042 1969 - Sales continued to increase. KOOL ended year with 36. I billion units and a 6.9°,6. Advertising expenditures were $19 m. During 1969, Keel conducted an all-print test in Philadelphia using all mediums. VICEKOY spots were run locally over KeeL's network TV time. KeeL sales were not affected by lack of TV. Because of KeeL's masculine image and 70% - 80% of the extra-length menthol cigarette smokers were women, daytime TV was used for the first time in fourth qtr. to promote KeeL Longs to female smokers. Women considered longer cigarettes stylish. Ad campaign used "Stylishly long...tastefully cool. Lady Bc Cool." Results were good and "IV schedule ran through 1970. 1970 - Sales climbed to 42 billion units. KeeL Longs sales were 5.43 billion; 70 mm 1.83 billion. Market share was g.0%; Salem tracked $.4%. KeeL began a transition to print during fourth quarter--outdoor and magazine advertising used; expenditures were $21.9 million w/CPM $.52. Extensive use of black radio used, delivered in black vernacular by announcer and jingle. TV continued its success with problem/solution slice-of-life format. This did not translate well to magazine ads. Ads featuring cool scenes, posing common cigarette problems and offering KOOL as the solution were used. Copyline "Come All the Way Up to KOOL" unchanged. KOOL Longs were promoted in a special campaign in select female magazines using stylish women in cool scenes with copy: "Stylishly Long, Tastefully Cool -- Lady be Cool." Outdoor used graphics and short messages stressing "extra coolness." Exterior and interior transit ads used. Sales continued to show gain in 1971:44.2 billion units; market share $.2%. KeeL Longs represented 6.4 billion units vs. 5.3 billion in 19970. The entire segment began to decline: 70 mm version dropped from 1.8 billion in '70 to 1.6 billion in 1971. When broadcast advertising was terminated at the end of 1970, KOOL's 1971 budget was reduced to $18.3 million ($3.6 million less than '70). National magazines were base advertising, along with newspaper, outdoor, transit. KOOL's CPM dropped to $.42. Newspapers were used in 1971 in major markets where KeeL sales had been hurt by rumors that the product was being taken offthe market. Schedules used 1200-1ine KOP black and one color (green) with copy and illustration localized in major cities. For example: "It's KeeL in New York." Rumors abated somewhat by year end. The reach of KOOL's ads to lower income consumers was limited by the elimination of broadcast. Print was less effective in relaying KOOL's message to this consumer group due to incidence &readership by this group. PRODUCED FROM B&W WEB SITE 318020043 Also in 1971, KOOL initiated a self-liquidator campaign whereby consumers were given the opportunity to purchase an 11-foot sailboat with carried KOOL 1o8o and usually sold for $120. Consumers could purchase a "Sea Snark" for $88 and one KOOL canon and flap. The purpose of the offer was to increase the effectiveness of the ad; it was one of KOOL's highest scoring ads and was used again in 1972. KOOL received over 18,000 orders for "Sea Sharks" in 1971. A POP test was conducted in 1971 comparing the "Sea Snark" floor display with a non- liquidator KOOL display. Stores using the ordinary display failed to increase sales enough to justify the $6.00 store payment. KOOL sales re "Sea Snark" display rose enough to more than cover the display payment and cost. 1972 - KOOL King and KOOL Long sales rose substantially in 1972 to 39.45 and 7.6 billion. 70 mm size dropped to 1.46 billion. BIG NEWS - KOOL MILD& On July 25, 1972, B&W introduced a low tar version of KOOL. KOOL Milds went into national distribution without test market ad sold over a billion units in 1972. (KOOL Milds was developed to take advantage of growing low tar segment and a T&N tax in New York City.) 1972 total sales were over 49.5 billion units; market share 9%; share of mentholated filter segment 35.5%. KOOL became the best selling mentholated filter brand in 1972, topping Salem sales by 450 million units. The brand also established itself as the fourth best selling brand, behind Winston, Marlboro, Pall Mall. Ad expenditures total $19.5 million. CPM was $.39. Four-color, full page magazine ads were used to introduce KOOL Milds, which was independent of other KOOL campaigns. The new style was an 84 mm menthol with lower tar. Major differences in Milds pack was that the Milds sides and front rectangle were white with green lettering--opposite other KOOL styles. KOOL Milds ads featured cool, refreshing scenes, and the pack was shown at the end of a rainbow as a visual symbol of mildness and a way to distinguish/viilds from other KOOL styles. Tag lines closed with "Enjoy a cooler kind of mild." In December the KOOL Milds pack appeared in the lower right comer of KOOL ads, bringing the style under the umbrella of KOOL advertising. More aggressive copy was used during the year, aimed at in~rporating the use of'_'pure _ menthol" in the ads. This was part of a continuing attempt to deal with KOOL's perceived image problem, i.e., harsh/strong, etc., and to take a more competitive stand against other menthol brands. The 1971 strategy of using heavy ad schedules in black magazines continued. PRODUCED FROM B&W WEB SITE 318020044 KOOL's Sea Snark promotion was repeated in 1972, adding option payment through charge cards. "Lady be Cool" campaign ran through 1972. A new execution aimed at women was begun in late 1972, featuring more aggressive copy. The same slogan was used as a tag line for the new campaign. KOOL Milds achieved a substantial increase in sales from 1 billion units after five months on the market to 2.76 billion units in 1973. Low-tar segment (7-15 rag.) menthol segment grew 20% in 1973 to 12.2 billion units, 2% of total market. KOOL Milds SOM in low tar segment was 23%, 5% of total market. At 15 mg. during its second year, KOOL M's became the second largest selling low tar menthol cigarette. TRUE, with 2.92 billion units, was first. In 1973 KOOL Milds was ninth ranked menthol cigarette, .37 billion units behind Newport's soft pack. KOOL Parent was the largest selling menthol mad Salem second. KOOL Milds ads kept the same format. Copy changed slightly. The style received $2.6 million in ad money, 15% of the total KOOL ad budget. SOV for KOOL Milds in hi-fi segment was 5.6%. Total KOOL ad expenditures decreased 18% to $16.5 million in 1973. KOOL Parent SOV in full taste menthol segment was 23%. Salem: 33%; B&H 11%; Newport 7%. KOOL Parent CPM decreased 26% to $.29 from $.39 in 1972. K00L Parent ads continued in same format. Headlines varied some. A "KOOL house" made of fiberglass screening was offered via magazines and supplements in a self-liquidator campaign for $129. Total KOOL sales increased 13% to 56.11 billion units in 1973, 38% menthol market share. KOOL SOM increased to 5% to 9.5%. Salem 8.5%, decrease of 1%; B&H 1.2%, increase of 7%; Newport .8%, increase of 8%. 1974 - Ad expenditures in menthol full taste segment increased 35% with KOOL increasing 24% to $20.4 million, 20% of all menthol expenditures. CPM rose 14% to $.33. KOOL Parent advertising theme continued. KOOL Milds maintained tag line "Lady be Cool." Black publications continued KOOL support. Most used tag line "Come all the way up to KOOL." A self-liquidator campaign offered a lawn swing via supplements and magazines for $119. tL1R launched Salem in a hard box in February 1974. B&W followed with a KOOL flip open box distributed nationally in November. December sales totaled .33 billion units. Pack design was basically the same as KOOL Parent. New style was advertised as "the only flip open box with the taste of extra coolness inside." Total KOOL sales increased 9% in 1974 to 61.15 billion units, nearly 40% of menthol volume. KOOL Milds grew 17'/, to 3.23 billion units. Longs grew 12.2% to 10.01 billion units. KOOL Regulars fell 11.6% to 1.22 billion units. Total KOOL SOM increased 6% to 10.1%. PRODUCED FROM B&W WEB SITE 318020045 1975 - Music program was developed in cooperation with Festival Productions Incorporated. The objective was to enhance the product and smoker image ofKOOL t~ough well- publicized association of KOOL with sponsorship of specific types of'music suitable to various target audiences of KOOL styles. Secondarily, to develop a contingency program which would enable advertising and promotion in a climate of restrictive legislation. Also the music program was to be come a brand preemptive property. The KOOL .lazz Festivals produced in 1975 featured Black soul music in major outdoor facilities. The Festivals were promoted via supple~nents, flyers, POP, etc. KOOL also used two other promotional events in 1975: a sweepstakes and a self-liquidator campaign. The KOOL $64,000 Sweepstakes featured a menthol green 1975 Kolls-l~.oyce Comiche as the grand prize. The Sea Snark off'er was repeated in a self-liquidator campaign for $139. Both campaigns were promoted via magazines and supplements. KOOL Parent ad budget increased 6% to $91.3 m. KOOL Mild budget decreased 45% to $1.2 m. Total KOOL expenditures were $20.8 million. CPM remained $.33. Advertising format continued to use cool refreshing scenes. Total KOOL sales increased 4.5% in 1975. All KOOL styles, except King size and Regulars, grew. KOOL SOM increased .7% to 10.27%. The flip open box did very well against Salem and Newport. 1976 - The menthol full taste market declined 7%. KOOL Parent sale fell 7% to 58.33 billion units. KOOL Regulars dropped 13% to .94 billion units; Kings 5.5% to 42.2 billion units. Long and flip open box styles grew 1.3% to 10.72 and 28% to 2.6 billion units respectively. KOOL Naturals were manufactured in I976. This brand style was produced in a non- menthol, filter king size sof~ pack for a limited test market in Arkansas. KOOL Milds continue to grow, 19.10% to 4.24 billion units. Salem Lights offset the brands decline and total Salem sales increased 3% to 52.6 billion units. Total sales for all KOOL styles dropped slightly, 1% to 63.3 billion units. SOM fell 4% to 9.7% in 1976. KOOL Lucky Lady Sweepstakes were presented via magazines and supplements in 1976. a 63' yacht from the film "Lucky Lady" valued at $100,000 was the grand prize, and 10,000 tickets to see the film were offered. KOOL ~'azz Festivals continued during ~e year. A self- liquidator campaign promoted two jazz and soul albums for $1.59. A KOOL catamaran was available for $699. KOOL ad copy and format stayed the same. Expenditures totaled $24.59 million, an increase of 22%. CPM increased 21% to $.40. KOOL Naturals, non menthol, were tested unsuccessfully in Little Pock. PRODUCED FROM B&W WEB SITE 318020046 1977 - KOOL Parent introduced an Americana campaign from the previous waterfall ads. Waterfalls were replaced by rural barns and waterwheels by blue lakes. To try and soften the harshness ofprodu~t image, headlines changed to "So cool you can taste it" and "The most refreshing taste you can get in any cigarette" with "No wonder it's America's #1 menthol" beneath the packs. KOOL Kings and Longs shared the executions. Ad expenditures for KOOL Parent were $14.88 m KOOL Super Longs, launched in July 1977, received $16.03 m. KOOL and Cricket lighters jointly promoted a $100,000 sweepstakes. First prize was $10,000 cash and a pair of 1977 Chrysler Cordobas; second prize - three 1977 Dodge Aspen SE station wagons; and 6,000 third prize - a Cricket Accent Table Lighter with a carton of KOOL. Jazz Festivals continued. 1977 sales decreased 1% to 62.64 billion units. Salem increased 2% to 53.7 billion units; B&H sales increased 4.7% to 9.7 billion units. KOOL Super Lights achieved 2 billion units and KOOL Milds increased 19% to 5.06 billion units. Longs, Kings, flip open box and Regulars all decreased. Total KOOL SOM decreased 2% to 9.9%. 1978 - KOOL Music Programs expanded to include KOOL Country on Tour, KOOL Latino Festival and KOOL Super Nights in addition to KOOL Jazz Festivals. KOOL Parent continued with Americana campaign. Expenditures totaled $34.2 million; $17.7 million allocated to KOOL Super Lights. CPM remained at $.55. Industry volume in menthol full taste segment declined 13.4%. KOOL parent declined 6% to 49.9 billion; regulars declined 8% to .77 billion units, Kings dropped 6% to 36.9 billion units, Longs dropped 5% to 9.94 billion units and flip open box fell 7% to 2.3 billion units. Volume in menthol hi-fi segment increased 5 I% in 1978. KOOL Mild sales increased 2.6% to 5.19 billion units~ KOOL Super Lights grew to 4.28 billion units. KOOL sales totaled 59.38 billion units. SOM decreased 1% to 9.8%. 1979 - KOOL sales continue to decline,. Menthol full taste volume de,line 6.3% Salem Parent sales fell 11%; KOOL Parent sales fell 7.5%. Again, Longs, Kings, flip open box and regulars all dropped. The hi-fi menthol market grew 30% to 60.33 billion units. KOOL Super Lights grew 2.8% to 4.4 billion units and KOOL Mild sales rose 15% to 5.94 billion units. KOOL 1Vfilds were launched in O~ober 1979; sales were .35 billion units. Total KOOL SOM was 9.3%, a decrease of 5%. PRODUCED FROM B&W WEB SITE 318020047 K00L Milds was advertised and promoted separately for the first time at a sigrdficant level KM's were positioned as "M/Id but not too light." Outdoor and lead copy "Feel the taste of menthol mist." Parent continued the Americana campaign and KOOL Super Lights replaced it with a "Jugular" campaign in March. • Expenditures for KOOL Parent total $14.2 million, with an additional $17.3 million given to KOOL Super Lights. Total expenditures were $32.9 million. CPM rose 2% to $.56. • 1981- KOOL Lights and Ultra Lights were introduced. KOOL Super Lights were delisted. • 1988 - Four styles of KOOL replaced KOOL Lights and KOOL Ultra in St. Louis from August through April of' 1991. • 1989 - KOOL Box and KOOL Milds Box were increased from 80 mm to 83.5 in May. It was first tested in Minneapolis. It went national in September of 1990. 1991 - Potential new campaign tests began September 3 and October 22 in Cleveland, Ohio and Richmond, Virginia, respectively. This program was known as KOOL Revitalization. The Revitalization effort featured new packaging (KOOL Milds/Filters, KOOL Lights and KOOL Ultras) and new product blends (KOOL Lights and KOOL Ultra Lights). 1993 - KOOL Regular was changed to KOOL Non-Filter during the second quarter. This name change is on both cartons and packs. Fourth quarter of 1993 - KOOL test blend (slight increase in menthol content and changed specs.) This includes KOOL Kings (Domestic and Export) and KOOL Box (Domestic & Export). • 1994 - KOOL TM Filters, Lights & ~tra Lights delisted from Cleveland and Richmond during the second quarter. • October 21, 1994 - Increased ventilation on KOOL Super Longs to 17% (two lines of perforations). • November 1994 - KOOL test blend (slight increase in menthol content) expanded to KOOL Super Long 100's. • March 5, 1995 - KOOL Box and KOOL Milds Kings changed to test blend (slight increase in menthol). Ventilation was increased from 6 to 10 holes. • February 27, 1995 - KOOL Milds Box changed to test blend. (Slight increase in menthol). • April 24, 1995 - KOOL Milds 100'~ ch~@d tb~:-~t bl~~d[ (Slight inbi'eAs~: irii'/aefithol)7 • May 2, 1995 - KOOL Filter Kings and KOOL Box - Slight increase in percentage oforiental tobaccos. PRODUCED FROM B&W WEB SITE 318020048 • * January 1996 - KOOL 100's Box were introduced in the domestic mm-ket. Second Quarter 1995 - KOOL partnered with Barry Green, owner of Team Green, to form Team KOOL Green. Team Green won the Indy Car Championship and the Indianapolis 500 in 1995. KOOL sponsored two American drivers in the Indy Lights Championship in 1996. Indy Lights is the ofticial support series for Indy Car. KOOL moved into I.ndy Car racing in 1997. September 1996 - KOOL IV~ds 10Ws Box launched. October 1997 - KOOL new packaging md advertising test marketed in Wisconsin. If'test market go.e.s well, ,n~tional ~un~ht w~l,. occur ir~ M~rc.h. 1998. PRODUCED FROM B&W WEB SITE 318020049

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