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Lorillard

The Lorillard Informer

Date: May 1999 (est.)
Length: 46 pages
80310001-80310046
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Litigation
BCNJ/PRODUCED
UCSF Code
aae72d00
Type
Newsletter
Request
R2-011
Site
N14
Date Loaded
13 Oct 2000
09 Jul 2002
Area
LEGAL DEPT FILE/OFFICE
Author
Carter, K.
Clapp, R.
Dumas, G.
Jarrett, J.C.
Preddy, A.
Whipple, L.
Williams, J.
Author (Organization)
Lor, Lorillard

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Page 1: aae72d00
LORILLARD TOBACCO COMPANY CORPORATE PRINCIPLES ON MARKETING, PROMOTION AND YOUTH SMOKING As clearly set forth in the Tobacco Industry's Cigarette Advertising and Promotion Code (the "Code"), to which Lorillard has adhered for many years, Lorillard believes that cigarette smoking is an adult custom and that children shoudd not smoke. Accordingly, Lorillard advertises and pro- motes its cigarettes only to adult smokers. Moreover, Lorillard believes that laws prohibiting the sale of cigarettes to minors should be strictly enforced. By entering into the Master Settlement Agreement (the "MSA") with state attorneys general in November of 1998, Lorillard agreed to vari- ous other restrictions and prohibitions relating to the marketing and promotion of our products. These are consistent with our long-standing commitment to preventing youth smoking. We intend to strictly comply with both the letter and spirit of these restrictions and prohibitions, and all other obligations we have undertaken pursuant to the MSA. In order to demonstrate and renew that commitment, Lorillard Tobacco Company hereby affirms the following Corporate Principles: Marketing and Promotion • Lorillard does not and will not design or implement any marketing or promotional program intended to encourage youth to smoke cigarettes, and will continue to utilize only those advertising, promotional and marketing materials that do not, directly or indirectly, target youth. • Lorillard does not and will not use or cause to be used any cartoon in the advertising, pro- motion, packaging or labeling of its products. • Lorillard does not and will not use any model in the advertising of its products who is, or appears to be, under 25 years of age. • Lorillard does not and will not advertise its products in publications directed primarily to persons under 21 years of age, including school, college or university media (such as ath- letic, theatrical or other programs), comic books or comic supplements. • Lorillard's advertising does not and will not suggest that smoking is essential to social prominence, distinction, success or sexual attraction, nor does it or will it picture a person smoking in an exaggerated manner. • Lorillard's advertising may picture attractive, healthy looking persons, provided there is no suggestion that their attractiveness and good health are due to cigarette smoking. page 4
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Corporate Principles On Marketing, Promotion And Youth Smoking lcontinuedl Lorillard will not use or cause to be used as a brand name of its products any nationally recognized or nationally established brand name or trade name of any non-tobacco item or service, or any nationally recognized or nationally established sports team, entertain- ment group or individual celebrity, other than tobacco product brand names already being used by Lorillard. Youth Smoking • Lorillard does not and will not take any action the primary purpose of which is to initiate, maintain, or increase the incidence of youth smoking. • Lorillard strongly supports the efforts of the Foundation to be established pursuant to the MSA and other efforts to coordinate and carry out a nationwide program of advertising and education designed to counter the use of tobacco products by youth. • Lorillard strongly supports the designation of our schools as "smoke free" zones, and sup- ports efforts to eliminate tobacco product advertising in schools or on school property. • Lorillard strongly supports the enforcement of laws which require retailers to check the age of potential purchasers of cigarettes, and which require periodic checks of retailer compli- ance with such laws. Lorillard also strongly supports the vigorous enforcement of current restrictions on youth access to tobacco products, including the use of modern technology to increase the effectiveness of age-of-purchase laws. • Lorillard strongly supports further legislative efforts to curb youth access to tobacco prod- ucts, including, but not limited to, the passage of laws which make the purchase of ciga- rettes by underage persons punishable by fines and/or community service and compulsory education programs. • Lorillard strongly encourages its employees to help Lorillard identify additional methods of reducing youth access to and consumption of tobacco products, and has established an employee suggestion system to enable an employee's ideas to be shared with, and if appro- priate, acted upon by the company. Lorillard expects its employees to comply fully with these Corporate Principles and with all of Lorillard's obligations under the MSA, and strongly encourages them to incorporate these Principles into the daily execution of their job responsibilities. Co 0 ~ C:] page 6 C-,.
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Corporate Principles On Marketin& Promotion And Youth Smoking tcontinued) . • Lorillard's advertising does not and will not depict as a smoker anyone who is or has been well known as an athlete, nor does it or will it show any smoker participating in, or obvi- ously just having participated in, a physical activity requiring stamina or athletic condition- ing beyond that of normal recreation. • Lorillard's advertising does not and will not use sports or celebrity testimonials or those of others who would have special appeal to persons under 21 years of age. • Lorillard does not and will not use any of its cigarette brand names to sponsor any concert, or any event in which the intended audience is comprised of a significant percentage of youth or in which any paid participants or contestants are youth, and does not and will not sponsor any athletic event between opposing teams in any football, basketball, baseball, soccer or hockey league using any of its cigarette brand names. • Lorillard does not and will not advertise any of its products in its advertising of any spon- sorship, other than using the product brand name to identify such sponsorship; nor does it or will it refer to a brand name sponsorship event or to a celebrity or other person in such an event, in the advertising of its products. • Lorillard does not and will not make, or cause to be made, any payment or other consideration to any person or entity to use, display or make reference to any tobacco product or brand name advertisement for a tobacco product, or items bearing a brand name of a tobacco product, in any motion picture, television show, theatrical production or other live perfor- mance, live or recorded performance of music, commercial film or video, or video game, that may be viewed by persons under the age of 18 or that is intended for distribution or display to the general public. • Lorillard does not and will not, directly or indirectly, market, distribute, offer, sell or license any apparel or other merchandise (other than cigarettes, items the sole function of which is to advertise cigarettes, or written or electronic publications) which bears a brand name of its products, except for items to be used within adult-only facilities that are not distributed (by sale or otherwise) to any member of the general public, or items distributed to its employees for their personal use. • Lorillard does not and will not distribute or cause to be distributed any free samples of cig- arettes, except in adult-only facilities or in conducting consumer testing of its products with persons who certify that they are adults. • Lorillard does not and will not provide or cause to be provided any item to any person in exchange for the purchase of its products, or the furnishing of credits, proofs-of-purchase or coupons with respect to such a purchase, without sufficient proof that such person is an adult. • Lorillard does not and will not license or otherwise expressly authorize any third party to use or advertise its brand names in a manner otherwise prohibited by the Master Settlement Agreement. page 5
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Using Tomorrow's Technology Today (continued) preliminary laboratory tests, this technology was able "Our goal is to transfer this technology to to differentiate and quantify the different types of Operations so that we can better determine the tobacco within a blend. Liz Butler, analytical blend composition and blend homogeneity of our chemist, and Johnson are working on this project. tobacco as it is processed," Johnson said. (left) Liz Butler, analytical chemist, and Jennifer Johnson technology can be used in the manufacturing process. evaluating hmr new Technology transter is not limited to Greensboro. Each year, the tobacco warehouses in Danville are fumigated for tobacco beetles and other pests. Another area of interest for the section has been the development of an auto- mated and continuous method to monitor the concentration ot phos- phine gas used to fumigate the warehouses. The method has been devel- oped with the assistance of other sections in the Research Center, and eval- uation of the instruments is almost complete. This year, the final technology will be transferred to Danville and monitoring phosphine gas inside the warehouses will become a standard operation. "Our effort in this area gives Lorillard the most accurate and precise phosphine measurement method in the industry," said Deborah Mereand, research chemist. "By using this approach, we're able to maximize the efficiency and the effectiveness of our fumi- gation program.° Also, new methods to seal the warehouses have been investigated and implemented, resulting in lower leakage rates and _ Deborah Mereand, research chemist, is collecting data during a narehouse fumigation at ultimately the need for Lorillard's Danville Facility. less phosph i ne. page 12
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Promotions And New Assignments (continued) Thomas R. Gates has been promoted to division manager, Atlanta South, GA. He joined Field Sales as a sales rep, Atlanta West, in April 1997 and was promoted to assistant division manager, Atlanta West, in April 1998. Billy D. Hutchens has been promoted to senior sys- tems programmer in the MIS Department. He joined Lorillard as a systems programmer in March 1998. David Jones has joined the MIS Department as a business systems analyst. He earned a B.S. degree in business/operations management from the University of North Carolina at Greensboro. A native of Olongado, Philippines, Jones was previously employed as a functional consultant with Cap Gemini in Houston, TX. J. Larry Kays has joined the Manufacturing-Packing Department as a supervisor, Maki ng/Packi ng. A native of Louisville, KY, he earned a B.S. degree in education from Eastern Kentucky University, Richmond, KY. Kays was previously employed as an executive branch manager at General Building Maintenance, Inc., in Richmond. J. Ty Kimbro has joined the Quality Assurance Department as a quality engineer. A native of Raleigh, NC, he earned a B.A. degree in business management from North Carolina State University. Kimbro was previously employed as a TQM facilitator at Microfibres, Inc., in Winston-Salem, NC. Lila J. Lee has been promoted to division manager, Oklahoma City, OK. She joined Field Sales as a sales rep, Oklahoma City, in April 1987. Jeffrey L. Manning has been transferred to the MIS Department as a computer operations clerk. He joined the Office Services Department as mail/output control clerk in May 1997. /Jones Kays Lee Manning page 19
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Using Tomorrow's Technology Today By Rick Hodson Staff 4Vriter Almost every day it seems as if there's a new high-tech gadgeton the market designed to make our lives easier and better. Often, the problem is trying to figure out which ones we can afford, and if they will really deliver what they promise. The same is true in business. Finding the right technology for the right task is the heff&K_~ ,r _, A~_ goal of a Research llefU Jennifer Johnson, senior research chemist, and Rob Stevens, manager, demonstrate a method used ent for determining menthol concentration on tobacco developed by the Technology Application Section. and De elo v pm section recently cele- brating its first anniversary. The Technology Application Section under Rob Stevens is designed to help translate the latest innovations into practical applications Lorillard can use in the marketplace. "The Technology Application Section was created to serve as a liaison between Research and the rest of the company in the area of transferable and applied tech- nology," Stevens said. "In many cases, we're able to inform management about new innovations or methods they may not have been aware of, and how these breakthroughs can achieve company goals." Stevens believes the application of technology is essential to maintain the highest level of product quali- ty, ensure regulatory compliance, meet production demands, and minimize costs. By regularly communi- cating with all areas of the company, the section is able to initiate and perform a smooth and timely transition of technology improvements to increase productivity and cigarette quality. "New advances are occurring all the time," Stevens said. "It's important to be aware of the advances as well as the needs. You always have to weigh the advance- ments with the needs of the company." The work performed by members of the Technology Application Section falls into two main categories: Supporting the Technology Application Section are the technology transfer and technology application. efforts of (left) Ken Lilly and Herman Gay, lab technicians. page 10
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Keeping Cool (continued) building, plus the piping system which sprays water keeping the air cool and moist, have been either repaired or replaced. The backbone of the unit is four fans connected to a series of ducts and vents, which snake above the manu- facturing floor. The four main air-conditioning ducts are huge. They measure more than five feet across, four feet high, and stretch almost the entire length of a football field. The metal ducts were wrapped in old insulation, which had to be removed. Once that was done, they were taken apart in sections and flattened like a pancake before being lowered through a hole in the ceiling and taken away for disposal. "It's been a big job," said Mac Liles, super- visor, lvtaintenance. "But the crew doing the work really knows what they're doing and that makes it a lot easier." In order to be dis- assembled, the fans had to be cut apart and lowered through holes large enough to swallow a small car. In some cases, entire conveyor lines had to be moved so the fans could be hauled away. "What most people don't know is that most of this work was clone on weekends and in the early morn- ing so as not to disrupt production," Liles says. "About the only time we could remove the ductwork was from about 4 a.m. until 7 a.m. We managed to accomplish a great deal in a very narrow windotiv." Plywood flooring was installed above the produc- tion floor, so that crews could work safely without danger to the people below. While workers have been busy ripping out old ducts, pipes, and fans, they've also been busy build- ing and assembling new equipment. Over the course of the project, pipe fitters, welders, and mechanics have been installing new motors, water pipes, spray nozzles, and fans. Overseeing the day-to-day details of the project is Mac Liles, supervisor, Maintenance. "This effort has been ongoing for almost two years,° Bullock said. "Since we can isolate each of the four main air- conditioning lines, we can shut one off, do our work, and then put it back on-line with no major impact." During the sum- mer months, all four units will be operat- ing to keep the floor cool. The last of the renovations is scheduled for com- pletion in June. AII the ductwork is being replaced with new insulated panels, which are assembled and installed high above the produc- tion floor. "Our old system was used for more than three decades," Liles said. "This new equipment should last at least that long, if not longer." Z page 10
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Promotions And New Assignments Bissette Cueto Cochran Cummings Mark Bissette has joined Lorillard as director, Leaf Operations. He earned a B.S. degree in business administration from the University of North Carolina at Chapel Hill. A native of Rocky Mount, NC, Bissette was previously employed as director, Leaf Buying, at Brown & Williamson in Wilson, NC. D. Sharon Cochran has joined the Human Resources Operations Department as axecutive secre- tary I. A native of High Point, NC, she was previously employed as an administrative assistant at Rex International in Thomasville, NC. Ruben J. Cueto has been promoted to manager, Chain Accounts, Denver, CO. He joined Field Sales as a sales rep, Los Angeles West, CA, in December 1988. Cueto was promoted to assistant division manager, Los Angeles South, in October 1990 and to division manager, Denver, CO, in October 1992. Michael A. Cummings has joined the Research Center Library as a research librarian. He earned a B.A. degree in English from the University of North Carolina at Pembroke and a master's degree in library science from the University of North Carolina at Chapel Hill. A native of Marianna, FL, Cummings was previously employed as information specialist at the Public Library of Charlotte/Mecklenburg County in Charlotte, NC. Julia A. Davidson has joined the Risk Management Department as claims administrator. A native of Greensboro, she earned a B.S. degree in criminal jus- tice from Appalachian State University in Boone, NC. Davidson was previously employed as a case manager II at Liberty Mutual in Charlotte, NC. Dale M. Everhart has joined the MIS Department as a programmer analyst. A native of Winston-Salem, NC, he earned a B.S. degree in computer science from Appalachian State University in Boone, NC. Everhart was previously employed as a tech support specialist at Burlington Industries, Inc., in Burlington, NC. page 18
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Using Tomorrow's Technology Today fcontinued) Another project currently underway is the evaluation of systems which detect foreign material, such as paper or cloth, in the man- ufacturing process. "The goal is to detect and remove this material from the tobacco before it enters the final product," said Suzanne Roof, chemist. Currently, the section is evaluating a series of optical sensors for the job. This year, they plan on continuing to evaluate advancements in optical systems, work with Lorillard engineers to deter- mine where the systems should be placed throughout Operations, and come up with a series of recommen- dations on how to effectively utilize the best technology available. Technology Application: Don't Reinvent The Wheel Part of the job of (left) Tommy Thorn and Suzanne Roof, chemists, is evaluating products and materials for use throughout the Operations Facility. W hile part of this section's goal is to transfer new technology into the workplace, another very important mission is to find new uses for already estab- lished instruments and procedures. These technology application efforts directly impact the daily operation of the business and re nlve around quality issues con- cerning tobacco or manufactured cigarettes. An operation as large as Lorillard houses thousands of items other than just tobacco and cigarettes. From air filters to cleaning solutions, keeping these materials from impacting the final product is top priority. Members of the section routinely evaluate materials used by Lorillard and its suppliers before they even reach the manufacturing floor. "Our section has to approve any material before it can be used in the Operations Facility," said Tommy Thorn, chemist. "By using existing tech- nology, we can evaluate these items for suitability in Operations or help in finding suitable replacements." The section is deeply involved in the effort to develop a system which prevents foreign materials from entering the product. As part of the Foreign Materials Committee, new purchasing procedures have been established which assure only approved materials are being ordered and eliminates vendor samples which have not been approved by theTechno4ogy Application Section. "One way or another, everyone in the company is affected by what our section does," Stevens said. "By focusing on finding and developing new technology, we help ensure that the products we produce will be of the highest quality possible." page 13
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Keeping Cool By Rick Hodson Staff Writer W ith those hazy and crazy days of summer notiv here, one necessity is air-conditioning. Part of the system that supplies treated air to the manufacturing floor has just undergone a multiyear renovation and replacement. Everything from the main ductwork to the huge fans that blow air through the system has either been replaced or repaired. "These systems have carried moist and air-conditioned air for more than 30 years," said Julian Bullock, chief engineering manager, Project Engineering. "Under those Chuck Tague, welder, Maintenance, installs a pipe that will carry water through the air-conditioning unit. ' Third-shift mechanics (left) Rick Barton and Marshall Roberts assemble a newly designed chill water pump to help power the cooling system. page 14 ~

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