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CONF IDENTIAL / SX cK EsR. _.~_ .%lax A.eeeempnt ~IN CD~CLUS I (.~M A. the result of (a) smoking the few cign±-ettee available, wh£ch £ncluded three of the comrmunde - WS3, ~'S~ and lzS~w end (b) a review of the opportunities to test ~Jrther and ~.arket one or more compounds hav~ a coolJJSE effect but without r~enthol tastet we seres with Dr. Green's reco~ndntion that three com- ~unde ehol, ld be "investigated further if we could do so on a reasonable basis". The way we arrived at thle conclusion is .at on~ holow, toEether with ideas for further exploratnry con~un~r r..earch. I. Cigarettes 0 emokad About 80 ci~arette~ were made ~vailahle ~o u., ~n vnrlnbl~ quantities for three e~pom~ds - WS3, ~;5~ mad ~.?~8, and at three levels - I mE, ~g and % mE. %~ and WS8 were included in D & || E~F and YICE~JT and 115~ in VICF~OY only. ~o elf,Fortes ~ritb added £1avoure were tested, We dld not att~Ft to d~t~Eic~te the It & D T~ste and Flavour work. There w~re not snout, ci~rott~,~ for any reliable wnrk to b~ d~ne on this, or on c~nflu~er /n-eference~. Se~mplee Of each ¢iSmretto were ~t~o~ed by the ~-~n who r~rns the Millb~nk T & F P~nol (N.I~. D~x) ~d he is ~o~m to be . dlscrlml- natlnE meal&or, able to dotect dlfferonc,n nnd r~D.~rt well. Cigarettes w~re 81eo e~ked by rations ~n..bmrs of Mmrkutin~ Services, chiefly the ]'.~,rIcet ~esearch team. 2. Results The ~re noticeeble effects de~crlbed in th~ R & |; report No. R.D.950-R were ~enerall7 c~nfir~ed, thou.~h obviously more ciEarettes are needed to be mlr~ about the~. Subjective J~,d~nta~ however, w~r8 not adverse as a rule9 bt~t some objections were made about the "anmestheti©" after-effect ~en sover~l ciEnrettes were ~keds one after ~he other. [~wever, we feel th.t, in principle, this could be turned to consumer adventaEe~ n~ o.~q~leinod later~ if the right compotmd can be idem~kfied with the optlr~ ~FVllcntlon of it on the filter." W38, % mE tend ~ mE, wa~ einsled out, spon- t~eously, as herinE a pror~Iced ~d prulongod "anao.th.tic" or mnumbimE" effect in the ~o~tth. men .h~l tlq,o" effect of There was ep~ntaneoue mention o£ the " those compounds whlcb ~rs easily recoEllieed aS heiz~ different from standard H & 1| or st#~'Idard VICEI{OY. The effect was noticed more, in factt with %qCF~DT titan with B & H. This "menthol effec~" O CD k~D CD BATCo document for Legal Services • Health Canada 27 November 2000

@ re~erd as i~9ortant, and to be due to the fnct th.t there is an assoclatlon remAltt~ from prevlou~ ~nthoL ~okin~ experience and sxpo~e to the advertising, nf ~nthol brands: this leads the smoker to talk about the "~nt]~ol experience"t it. coo2:Ln$ - event thigh the cigarettes ware often seem to lack the c~uracterlstlc "m6ntbol" or "mint" flavor,r® The B~|¢er i~, feel, conditioned by the ~enthol e~1~erience or menthol propaganda so me to classify the "coolante Imoklr~ experience within menthol imokins experience or, Indeed, the anticipation of It if he ~cks that experience. This is not to say tlmt "coolant" i. perceived ms a ment}~l 'substitute' as such, but simply that th, nenthol clear.tie As apt to be the 'b~clwmrk' or 'no~' to ~Ich referenc~ is readily made in descrlblnE the taste of those cn~n~,nds where m difference is detected. It should be noted that, in our i~ted teStS, n~ ¢r~m~arlso~ wre invited with menthol cigrr~ttos. ~d that only spontaneous, non directed com~ente were called for. 3- Po~ ~ibl_e_ ~ark et In~r t~mlties (l) The "cool" cigarette to appeal to Ch~:~e ~,-ho object to the taste Ot ~entho1~ but may welco~ :L11steec| a "cool", non- £1avo~red ~iEarette. Co~Jderebla lnfor~ation on menthol markets c~Imtn already® ~nthol c~mracteri~tics, which create loyaity to m~nthol bre~nds in so~ cou~trlea - above all the U.S.A.- are a so~-ce of w~d~ems in others, ~nthol appeals in tropical and sub-tropical crea~ ~d see~ related to h~at and hi~:@r ~-,ldlty. It }~s a certain medl- Ci~¢ appea~ - helpin~ b~d t|uro~ts, head colds, catnrzh. Xt epponlm to some for a tests of mint, to some for ©oollt~, ~td to other~ for both. It often a~eaAs to yammer emd f~le ~mk~rs. Amr~st triers and rejectors, its strensth~ become it~ we~- nesses - the ~:tt t~ste is co~idered unplennr.nt, the after-taste is ~pleasant ~d affects sating ¢u~d d~inhl~.~ etc., it iw seen to be ~or be~Ixmers ~nd ~or women, there ~m concern ~or~eti~8 for th~ effect on virility, c~md it la sos,ires ns~ocintod wit]: ;~oorer tobacco qu~llty. }~ce, there ~y l~ ~ oppozt~ity ~Atlt n coolnnt co~pc~d to promote a more mascu!Ane product, with a ~ro r~at~wo m;,~oal (not for be~ers) and one not assoclated with the n.~c..~ 'nozttltol' or '~i~t'. The aim here would be ~o get those wh~', |mrs t~'l~¢l me, he! ~d rejected i¢, to accept the '*coolant", where th~ cooli~ bme£it IS Jee~ aM the =mAn pro~ct beef At. (2) Ex~end/n,~ .the menthol r~n/~e Au~n~mt those who ere eddi=ted to ~enthol s~ol~in~, ~n oppor- tunity may be fmrnd to attract them to n new coolAn~ mxrerienc~ in m~okln~, even without added flavo~urs. At some levol~, the cc~d appears to trnnswit a taste of its own, ~ich could be e~Ioitsd if it is fcamd to be acceptable in full scale temtinz, C~ C~ BATCo document for Legal Services • Health Canada 27 November 2000

~Q ,::.:.... (3) ylawurs added ;to ':.coo.Xant~ This kind of pro~zct ~y provide a bagger ~ketin~ oppor- tunitys both in sopl~sticated mid lees developed P~rkets. Fre- I¢~L~ax~ studios have been conducted by R & D on ep.ea~nt, p~ppenLtJlt a~ld lose. Ve would like to test these flavo~rs and others which hold protctee, espec£s&ly if a 'cool~ntw compo~und el~hances a flavo~ur likely0 in £tselfl to be acceptable to ~ ees~ent of smokers ~d has s cool~; effect, At the ~o~ent, the contri- butAoa of WS compounds to flavottr ~humllce~ellt as opFo~ed to cool~t~ (or S ¢omb~tion of the two) is Dot ItXto~sther cler~s but seems worth pursutnK further. We believe it would be ~mrtl~-~ile to te~t mouth frc~h~in~ flavourjt medicinal or herM fla~u~ee and po,sibly B P~et~k t~te for ~J~doneoi~. (~) ~mi-~dlcinal a~psal t~ de.flned (prpMblv shot1) #o~ts of emkor~ We are p~rticularly ~ntri~ed w~th the prolon~.d after-effect of em of the compounds. Prtr~Ldod this te not eo excos~.tvo ns to create ~n t~np~ess~xlt a~sest~oiat th~11 w~ see two opporttunltles~ Direct medical - eaBin~ tlwoatst catarrh, ¢r ;load colds with a more prolm~sd and less ~invottr~d end- result tb~ ~tlml. @ I~direct modlcn£ - b~ croatia8 a l~O(htct d~si~tod to re~tce ~ple~e~t after-trees with emcktxXg ~ich sor~ people, partim~larly wozqen~ complain about° 'll~ts eppor- ¢l~¢Lity ~r~d ¢hcrl~l~ the ¢otLrse 0£ re.enrch nr~ snclcl stlsp~s attached to e~k~J~ con~h~cted in the UK recently. IIOStLZtS Will be di$ctmsed at the mnetl~ of the ~w Products Co.nitres on 2~ October. ~xe relevent ~xtrnct frm W report to the Co~nittee is w~..rth cp~otin~ in part hero :- "Perhaps the most pro~i.ir~ opporttmity, fh~ro£ere, is descritmd on P-7 e£ the report in the pnra,~rnph wtxtch sate time ...'~e feted that to a limited extent there cnuld be a demand for a cigarette tMt left the mouth £eel~n~ fresh aX~er lm~k~ng aztd ~L~aO one which did not irritate the throat'. Tim argument which develops ~u~;e~ts that the ordi~ry mntlml cigarette, as tomb, is not a eolutivn. It is ~ther suggested tlmt 'Any now prod~lct nlon~ thews lanes would lays to prc~de a normally satisfying cizar~tte {YLrx~nta) smok~j~ experie.cs in ~e £Lrnt place. ~ten if some way co~d be feted of giving them a nice taste at the ~d ~£eh would leave a nlce fresh taste in the mouth, this would be 'ideal'". (5) A £Lt~l Opportu~Ltty may e:x:~st~ but ~lich within the time available, we lmve not been able to discerns wit}: |.eel ')eFt. %qxeir note on the WS ¢ompotunds, included in the It & D report, dote .ny that there are "no advantageous sensory effects", bttt w~ nro wondorin~ meverthelsss whether etny Of the cotupounds conld b. nssd o o o o BATCo document for Legal Services • Health Canada 27 November 2000

hi as an ameliorant on certain grades of leaf at certain levels to reduce Impact and Irritation, is. to make them milder and smoother, with the aim of improving product acceptance and maybe providing leaf economies. ~, Further Consumer research main stages in research are recommended: (I) further exploratory work, (2} preference testing via consumer surveys. i) Exploratory. Group discussion work is desirable, and without giving details of research design at this stage, we can say that 500 cigarettes at each level are required for each compound selected. 2) Preference Testing should follow exploratory research wherein we compare ome NS compound with another, and each with the normal cigarette smoked by the respondent. At this point it. is difficult to say what quantities of cigarettes would be needed. For any selected experimental cigarette, ho~ever, which includes a given WS compound, then on the assumption that (a) we test amongst a sample of 300 smokers~ (b) that each respondent smokes an adequate number of cigarettes over a 5 to 6 day period, approximately 30,000 cigarettes of each compound would be required. 24.10.1972 P.L. SHORT. O CD "--O CD CD CO BATCo document for Legal Services : Health Canada 27 November 2000

.¢.T!~/VC / 3 8 ~.,,th october, 1,072 To: R. P. DO~SON, ESQ. .::.:.:,. l Here is our Report No. RD.9SO-R on the lfilklnson Coolant compounds. The effect claimed has been denenstrated kut there are after effects. S~d~jt~ctive jud,~ements differ on nreference and are generally adverse, but I would llke to see these compounds investigated further if we could do so on a reasonable basis. The questions asked of B.g 17. (mentioned in the report) were mine and no one testing these materials was aware of W-S payment proposaIs before the tests were complete. I suggest that we should offer l~ilkinson a reasonable sum - say, [5-10,OOO for a further exclusive period (say, 6 months) during ;d~ich we could make a study of some more of their range of compounds. In my view, the chances of success are sufficiently remote to make this generous and to justify a 'take it or leave it' attitude by B-A .T. Their proposal of a "supply and technology" agreement I think you would find unacceptable. Other than telling them tale, I suggest ~e should ~o no further with n future possible n~reement at this stage. It is relevant to point out that B.5 ~7. have worked and have patents along similar lines, Also, if the marketing objective - a cigarette ~tth non-menthol tast~ coolant - had been put to either B.g I~. or B,A.T. research the same approach ~uld have been made and the project would have cos~ between [25-1OO,OOO. Further, the patent position of l'l-S is by no means secure. Nevertheless, they hove substantial application e~,erage - and if not a "breakthrough" - they have, I think, done a professlenal Job and have something saleable for certain applications other than cigarettes. I would strongly urge that our revert should not be passed to ~?-S in any event. If, ho~ever, you conslder it desirable to do so I would like the opportunity of producing a version specially edited for this purpose. if?#,] \,,' F.ncI° ,. -. ~ C.c. P.Macadam, Esq. • / i L ( Q ciD tjn, ~qD CD BATCo document for Legal Services • Health Canada 27 November 2000