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COPY REQUEST FORM BRITISH A~4 ER I CA\' "TOBACCO REQUEST No 1462 IOrganisation I DEPARTMENT OF JUSTICE - CANADA \ IREQUEST DETAILS File Number: ~ / 79 Request Date: ~:~////~o Box Number: FIRST PAGE t c;o c/!S ~qsl Cl oos Oio PAGE RANGE I LAST PAGE c~o c) ? Requested By (Print Name): P'~AU(_~O/~ OFFICE USE ONLY Copy Details Copied By: &'HoCu~-TT., I_ Copy Checked By: Lj!I_! I Time: Date: 2;~:;/, I ! '> ~D Delivery Details Checked By: Date: Sent By: Date: BATCo document for Legal Services : Health Canada 27 November 2000

f ERC/O~ WILKINSON SWORD LIMtTED SWORD HOUSE. TOTTERIDGE ROAD, HIGH WYCOMBE, BUCKS., HPI3 6EJ fE~EF'HONE: HIGH WYCOI~I.| ~0 C~tE$: $WOS~GCI~A~. H~GH WYCOM8I IE;~: iJ37~/34 Dr. S.J. Green, British American Tobacco Ltd., Westminster House, Millbank, London, S.W.I. 30th May 1973. ?," Dear Dr. Green, I am writing to tell you that a merger has been negotiated between Wilkinson Sword Limited and the British Match Corporation. I would like you to know that our entity as a company remains unchanged and that our normal commercial activities will continue as before. The negotiations, therefore, between our two companies are in no way affected by this event. Yours sincerely, • /i E.R. Chi!ton, Licensing Director. WILKINSON $wO20 LI~41t'ED REGD. OFFICE: SWOR~ I~OL;SE. ~'OTTI~IDGE ROAD. HIGH WYCC~E, ~UC~S HPI~ 6E/ IE~. ~O. ~931~ ENGLAND Q CD C~T. BATCo document for Legal Services • Health Canada 27 November 2000

CONFIDE~[T Z -~ COOLA/;TS EXPLORATORY CONCE?T RESEARCH Market Research Sunumarv b) 2. a) BACKGROLq~D .~D PURPOSE This quailtative research was set up in Norway and H~biiand to examine consumer attitudes to cigarettes treated with alternative levels of various Coolant compounds, and to probe Zor possible marketing opportunities for them. The research was carried cu~ in the form of 10 group discusss$ons in each country among smokers of filtered menthol cigarettes and of ordinary filter cigarettes over April/May. Since the findings are not based on statistic~.!ly representative samples of smokers and have been derived by the use of exploratory tec~hniques, they should not be interpreted in the sarape way as the results of formal, quantitative research but rather treated as more hypothetical and as only being indicative of consumer attitudes. A full-scale quantitative study which will formalise these results is~no~; under way in both countries wih resu!~s due at the beginning of August. MAIN F!~FDI!~GS I. Overall Reactions to the Coolant Cigarettes a) In Norway the test cigarettes were generally identified as o menthol, although most respondents recoguised tha~ they had a lighter menthol taste than o.ther menwhol cigarettes they had encountered, and indeed a few queried if it was a tea/ menthol. An important advantage which these cigarettes were thought to have, particularly for non-menthol smokers, was that the so-called menthol taste did not mask the tobacco flavour as was said to be so often the case with normal menthol brands. Some respondents called them a "hybrid" or "in between" cigarette, i.e° neither menthol nor non=menthol. In :~o!!and the test cigarettes were also ~hought to be a men_thc! tlrpe of product, albeit with a lighter loading of menthol. Many of the Dutch respondents found that the menthol taste tended to disappear from the cig~-rettes after a few puffs, and that the after-taste did not persist. Because of this lighter and briefer menthol impression, consumers quite definitely described the Coolant cigarettes as ~u 'in between' product,~either menthol nor non-menthol. General Attitudes to the Test Cigarettes In both countries most non-menthol smokers appeared to reject the Coolant cig~rettes, mainly because they dislike ~uny form of menthol brand. At the same time the bulk of regular menthol smokers also tended to react ~nfavourab!y, because they considered the menthol taste to be toc weak, although some of them claimed that they might zmcke the Coolant 0 CD (DO CO O0 BATCo document for Legal Services : Health Canada 27 November 2000

- 2 - cigarettes on an occasional basis. In addition in Norway many respondents, especialiy the men, found the cigarettes excessively mild and lacking satisfaction: in Hhlland opinion was rather more divided in this respect, with some voicing the same criticism and others rating them as harsh and irritating~ b~ The most positive reaction to the test cigarettes came from lighter smokers (both menthol and non=menthol) who appeared to like the light menthol taste, and their fres}uuess and mildness. 0nly a few heavier smokers w~re relatively favourably disposed towards them: these were people who thought they might like to use them on an occasional basis, when they wanted a change, when they had a cold, or when they wmuted to offer around in company a cigarette that would be reasonably acceptable and not offensive to menthol or non-menthol smokers. e) Women generally seemed to be more favourably inclined to the Coolant cigarettes than men, possibly because they ~moke more menthol, tend to be lighter and rather more occasional in their smoking habits, and are possibly less committed to a particular regular brand and so more willing to try something different from time to time. }. Recognition of the Coolin~ Effect a) In Norway the cooling effect of the cig-~ettes was readily detected in most groups, althcugh respondents tended to refer to it as 'the menthol taste': thus it is no~ altogether clear to what extent this was perceived as a cooling sensation as distinct from a taste. In general this effect was described as cooling, refreshing and good for freshening up the mouth and breath. b) In Holland the cooling effect was not so clearly recognised although again where noticed it was described as fresh. 4. Other Smokin~ Characteristics a) In Norway apart from the menthc! taste and cooling effect the main positive attributes mentioned were the mildness and smootD~ness of the cigarettes. Men tended to find them lacking in satisfaction whereas women seemed to consider them quite satisfying. Some Zhroat irritation appeared to be detected with 044and082, and in some groups some versions were thought to give a dry effect in the mouth. Generally the tobacco flavour of the cigarettes was found quite pleasant, alth~1 some groupg seemed to detect an additional] perfumed, Turkish or spicy taste. b) In Holland opinions differed cn smoking attributes with some finding them light ~nd mild, ~nd others regarding them as harsh, " sharp or irritating. They did not seem to be considered particularly satisfying cigarettes, especially !a! and 143. The tobacco flavour did not ar~use much comment, although again O CO C~D CrD CY~ BATCo document for Legal Services • Health Canada 27 November 2000

a) b) , -5- an:added flavour was detected in some versions (044,O82,143), sometimes described as spicy. With some of them a looseness of tobacco packing and a fast htur~ng rate were detected. After-taste In Norway consu/ers notic~a distinct after-taste in their mouths, which was variously described as 'fresh', 'menthol' a/%d l~L~lusualt In Holland it was not noticed to the same extent: many respondents thought there was a light menthol taste left, but foum.d it relatively short in duration. Potential Users and Smokin~ Occasions for Coolant Cigarettes. In both countries the test cigarettes were regarded as likely to be smoked by women, beginners, light and occasional smokers, ahd by those who mainly smoke sn sccia! occasions. In both countries,~nd especially Norway, they were thought to be suitable for parties, ladies luncheon, for %'hen one has smoked in excess, when one has a e~ld, when one wants to freshen the mouth, and at the start and the end of the day. 7. Comparison with Control Menthol Version The control menthol cig=_rettes were easily and quickly identified by virtually all respondents as 'normal' menthol, with menthol smokers tending to prefer them because of their stronger menthol taste, and non-menthol smokers preferring the test cigarettes sin< they had alighter menthol taste. After the test cigarettes many smokers found the ordinary menthol so strong as to seem almost harsh and sharp, although some in Holland appreciated them as genuine and real after the 'in-between' Coolant cigarettes. TENTATIVE COI;CLUSIONS AND RECOIoU~ENDATIONS I. This research indicates that the Coolant cigarettes, as tested, are thought to be quite different from other cigarettes and to be uniquely positioned between menthol and non-menthol. In this blind and unaided context consumers' spontaneous reaction to their flavoun impression is to describe it as 'light menthol' but it seems to be sufficiently weak ~!d um.dom~uating that in a branded and advertised situation people would accept other descriptions. in Nor,~y in addition to the so~called menthol taste consumers detect the cooling effect which they seem to see as part of the menthol taste and describe as p~easant and refreshing, CD whilst in Holland it is less readily detected° At this stage O it is not possible to say ho~ closely menthol taste and tDu cooling effect are related in cons~ers' minds and to what CO extent they perceive the cooling effect as a separate (i.e. Oo non-flavour) sensation. We will aim to investigate this in more detail in the quantitative study. BATCo document for Legal Services : Health Canada 27 November 2000

-4- 2. Not unexpect~dly there is little evidence of the test cigarettes having a strong appeal for either menthol or non-menthol smokers, but the interesting possibility oceturs that an l_on~er smokers intermediate segment might be created of {=" ~" who are less committed to menthol or non-menthol and who would appreciate the clean , fresh taste sdld/or cooling effect but without a strong menthol fiav~un. 3. These above conclusions are consistent with three marketing opportunities for Coolant cigarettes which were previously hypo the si sed - a) they could be marketed as a cigarette for people who reject menthol on account of the usually strong taste, but who like the cooling effect. b) they could be used in an overtly male brand which offers a fresh taste for men who reject menthol brands because of the strong taste and their feminine con.notations, but who wJ~id . prefer a fresh, clean tasting cigarette. c) they codd be used tc extend the normal menthol range through the introduction of a lower level, milder menthol ('hint of mint') brand: this gap might of course be exploi~abie more simply and economically by a low level menthol product, and would need to be assessed t~hrough further cons~mer research. 4. In both Holland and Norway some versions of the Coolant cigarett seemed to consumers to have an ~dditional non-tobacco, non-menthol flavour, variously described as Tul~kish, perfumed spicy, American (in Holland). Although this was not regarded as an advantage, and would have to be overcome in specific brand development it nonetheless confirms our previous hypothesis that there might be a marketing opportunity to marry up the cooling effect of the Coolant compounds with new and unu~suai flavours in order to develop brands for minority segments. 5. In Norway the application of Coolants to the Pall Mall blend appears to have produced a particularly mild and smooth smoking product in several versions. This suggests that these compounds could be employed in the development of especially mild and smooth U.S. brands of a traditional (i.e. --~ o non-menthol) type, although it would be essential to avoid c-_) producing excessive cooling effect or a~~ 'off taste~ There t/n is also the possibilit! that Cob!ants could be used because of thse product benefits to imorove the smoking characteristics co : ~ c7o of cheaper harsher b!ends, co BATCo document for Legal Services • Health Canada 27 November 2000

, 7~ t In Holland opinions were divided as to whether the Coolants produced light or harsh cigarettes. It may be that their effect on Virginia blends is less marked in this respect, and we will need to study the results of the quantitative study to see if they shed more "light on this area. In Norway after-taste was clearly recognised in most versions and generally favourably accepted: this effect is consistent with the marketing applications noted above. However in Holland this effect seems to have been ]°ess marked and of shorter duration: we will need to study this in more detail in the quantitative research in order to determine more clearly how this operates in Virginia blends. Finally this research confirms suggestion previously made that cig~.rettes treated with Coolants could be marketed on a semi- medicinal platform. Specifically, they could use it in brands sold to help ease sore throats, heal~. co2ds and catarrh; and in brands which offer the benefit of fresheninz 8m.d cleaning the mouth and breath after too much smoking, at the beginning and end of the day, and for social occasions or meeting people. I.A. WALKER 3o15173 Distribution Messrs. P.L. Short Dr. Green R.D. Lowe N.R.~. Brown D.J. Wood. G.J. Siddall. o CZD (_/7 (f/o CO k£D BATCo document for Legal Services : Health Canada 27 November 2000

t NEDERLANDS c~ntrum voo~ ~~,~ ~A~Ys~ ~v SAIIPIIATIKADE i0, AMSTERDAM, TELEFOON (020) 6 40 71 (13o6) Research among smokers of cigarettes wi%h respect %o Coolant Compound On behalf of the British-American Tobacco Company Ltd. London Amsterdam, May 23, 1973 BATCo document for Legal Services : Health Canada 27 November 2000

-I- Chapter I: ~mderin~ of account This tes~ report contains the r~ults of a research among smokers (men and women) of menthol and virginia filter ci- garettes, regarding cigarettes with a so-called coolant compound. The object of this research was to ~et ~n overall insight in the reactions of thgse groups of smokers with respect to this new type of cigarette. The primary consi~eretion in,the analysis of these reactions refers to questions suc[l as; - de~zree of acceotation: in comparison with what one usually smokes - ooinion about a number of sc.~cifJc aszec~s; among which in the first place the coolin~ effect and possible after-effects. - manner in which the smoker himself r~esitio~.~ the cigarette i.e. suitable for what kind of smokers, on :':h~.t occesions etc. For a mere detailed enumeration of the topic~ ~--~--4 we refer to the written briefing, provided to us b-j the principsl ("Details of method and infor:=ation to be obt6ined"). Oes/ig~._o~ the test The test comprised i0 group-discussions with ~uokers of menthol- and Virginia filter cigarettes (men and v:omen), by which 5 variants were tested. These matters are schematically represented here, eccording to date, place ~nd variant, and ~ow the following picture: Place Date Variant l~ Amsterdam (re+w) April 2@ 1975 O 0#~ 2. Assen (~i) ~ay 3 1973 G 032 Asseu (m) ~ay l0 1973 G 0S2 3- Amsterdal (re÷w) ~lay 7 1973 G 1%1 4. Sbeenwijk (re+w) May 8 1973 C 084 5- Amsterdam [m~w) ~.[sy iO 1975 C 1@3 CD CZD tlq OD CTD ~ZD BATCo document for Legal Services : Health Canada 27 November 2000

-2- A total number of 103 smokgrs (men and ~o~_.~) took p~rt in the group-discus:~ions, of whoa 41 (men and women) were registered as smokers of menthol cigarettes. A few days before the discussions~ a package (in neutral packing) of ~he cigarette to be tested was handed to the p~rticipa~ts (men ~nd women) with the instruction to "to t~ out this cigarette". During the discussion meeting, the test cizarettes were offered a.gain. In the second and las~ part of the me~tin~ a normal mer thol filter cigarette was offered os a check-cis;srette, so as to cow, pare it with the test cigaretbe. -mreceeding the discussion meeti~nN the questions no the stgndard form "judgement cigarette X" which was :]eve!opped on behalf of the B.A.T. Holland, had to be answered in .;ritin~. - CD C~ C~D BATCo document for Legal Services : Health Canada 27 November 2000